Archive for Intel

Intel Buys McAfee…. Will Their Processors Now Be As Slow As McAfee Anti-Virus?

Posted in Commentary with tags , on August 19, 2010 by itnerd

Okay. I have a question. Why would Intel who makes microprocessors buy McAfee who makes anti-virus and security software for $7.7 billion? After all, there isn’t an clear synergy between the two. I’ll let Intel themselves explain why this makes sense to them:

The acquisition reflects that security is now a fundamental component of online computing. Today’s security approach does not fully address the billions of new Internet-ready devices connecting, including mobile and wireless devices, TVs, cars, medical devices and ATM machines as well as the accompanying surge in cyber threats. Providing protection to a diverse online world requires a fundamentally new approach involving software, hardware and services.

Inside Intel, the company has elevated the priority of security to be on par with its strategic focus areas in energy-efficient performance and Internet connectivity.

Okay. I guess that makes sense. But McAfee Anti-Virus is a great way to slow down your computer. Does that mean that the next Intel processor I get can be expected to do the same? I hope not. So given their rather crappy track record, couldn’t Intel have bought something that’s actually worth the $7.7 billion? Surely there’s other anti-virus vendors who make better stuff that would have cost them a fraction of what they paid for McAfee.

FTC Files Suit Against Intel… Sucks To Be Them

Posted in Commentary with tags , on December 16, 2009 by itnerd

So if the EU and the State of New York didn’t cause Intel’s legal department enough grief, the feds are going to. The Federal Trade Commission has filed suit against Intel claiming the following:

The FTC’s administrative complaint charges that Intel carried out its anticompetitive campaign using threats and rewards aimed at the world’s largest computer manufacturers, including Dell, Hewlett-Packard, and IBM, to coerce them not to buy rival computer CPU chips. Intel also used this practice, known as exclusive or restrictive dealing, to prevent computer makers from marketing any machines with non-Intel computer chips.

In addition, allegedly, Intel secretly redesigned key software, known as a compiler, in a way that deliberately stunted the performance of competitors’ CPU chips. Intel told its customers and the public that software performed better on Intel CPUs than on competitors’ CPUs, but the company deceived them by failing to disclose that these differences were due largely or entirely to Intel’s compiler design.

That’s gotta make Intel’s top brass nervous. The FTC wants to fix this by preventing Intel from using threats, bundled pricing, and other tactics to hamper competition or manipulate prices. Intel for its part had this to say:

“Intel has competed fairly and lawfully. Its actions have benefitted consumers. The highly competitive microprocessor industry, of which Intel is a key part, has kept innovation robust and prices declining at a faster rate than any other industry. The FTC’s case is misguided. It is based largely on claims that the FTC added at the last minute and has not investigated. In addition, it is explicitly not based on existing law but is instead intended to make new rules for regulating business conduct. These new rules would harm consumers by reducing innovation and raising prices.”

As usual, the lawyers will fight this out in court and and they’ll collect big cheques. We’ll see what the FTC, Intel, and the consumers get at the end of this.

Intel To Settle Anti-Trust Issues With AMD

Posted in Commentary with tags , on November 12, 2009 by itnerd

Intel has a few anti-trust issues right now, starting with the EU and the State Of New York. But their longest running anti-trust battle has been with rival AMD who sued them back in 2005. It looks like the latter is about to be settled:

Under terms of the deal, Intel will pay AMD US$1.25 billion, and has agreed to a set of business practice provisions, according to a statement from the companies.

AMD and Intel also said they have agreed to a new five-year cross-license agreement, and have given up claims of breach of contract from the previous license agreement.

“While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development,” the companies said in a statement.

On its part, AMD has agreed to drop all regulatory complaints worldwide and all pending legal disputes, including a case in U.S. District Court in Delaware and two cases in Japan. The agreement will be made public in filings with the Securities and Exchange Commission, the companies said.

This news is great for the value of AMD stock which is up by 22% as I type this. Intel stock has barely moved however. Could this be the start of Intel settling the other anti-trust issues that they have? Stay tuned.

NY State Sues Intel For Anti-Trust…. Wow!

Posted in Commentary with tags on November 4, 2009 by itnerd

Here’s some big news. Andrew M. Cuomo who is the attorney general of New York filed a federal antitrust lawsuit against Intel, saying it unfairly prevented AMD from competing under state and federal law. If that sounds vaguely familiar, that’s because the EU did the same thing earlier this year and nailed Intel to the tune of $1.44 billion in the process.

I’m guessing that Intel’s lawyers are really busy at the moment as this is likely to get worse before it gets better for them. Why? Here’s one good reason why:

The New York move increases the chances that the F.T.C. will take action against Intel, according to a person who was familiar with the state’s investigation but was not authorized to discuss it. Mr. Cuomo’s staff, this person said, regularly communicates and cooperates with the commission’s staff.

“These are separate investigations, but it would be very surprising for New York State to go off on its own without being fairly confident the F.T.C. would pursue Intel as well,” the person said.

At a news conference announcing the lawsuit, Mr. Cuomo said, “We have been cooperating with the F.T.C. We have a good, productive dialogue on this matter.”

It sucks to be Intel right now.

Intel Gets Bitch Slapped By The EU To The Tune Of $1.44 Billion

Posted in Commentary with tags , , on May 13, 2009 by itnerd

The European Union has decided that chipmaker Intel has been abusing it’s position as king of the hill to keep rival chipmaker AMD down. As a result, the EU has fined Intel $1.44 billion USD. To nobody’s surprise, Intel doesn’t agree with the decision:

Intel president and CEO Paul Otellini said the company would appeal to the EU courts because “the decision is wrong” and “there has been absolutely zero harm to consumers.” The company promised to comply with the EU order but criticized it as extremely ambiguous.

However, AMD is doing cartwheels:

AMD’s Europe president Giuliano Meroni said the EU order “will shift the power from an abusive monopolist to computer makers, retailers and above all PC consumers.”

So what did Intel do to tick off the EU? According to them, they did a bunch of things:

The EU says Intel gave rebates to computer manufacturers Acer, Dell, HP, Lenovo and NEC for buying all or almost all their x86 computer processing units, or CPUs, from Intel and paid them to stop or delay the launch of computers based on AMD chips.

Regulators said the company also paid Germany’s biggest electronics retailer, Media Saturn Holding — which owns the MediaMarkt superstores — from 2002 to 2007 to only stock Intel-based computers.

This meant workers at AMD’s biggest European plant in Dresden, Germany, could not buy AMD-based personal computers at their city’s main PC store.

“Intel has harmed millions of European consumers by deliberately acting to keep competitors out of the market for computer chips for many years,” said EU competition commissioner Neelie Kroes. “Such a serious and sustained violation of the EU’s antitrust rules cannot be tolerated.”

This will be tied up in court for years before it gets resolved, and they’ll likey be in line behind Microsoft.

Intel Skips Vista…. I Guess They’re Not Impressed With Aero Or Something

Posted in Commentary with tags , , on June 26, 2008 by itnerd

In the latest affirmation to the fact that Vista sucks isn’t being widely accepted, The New York Times Is Reporting that Intel isn’t going to update to Vista. Think about that for a second. Intel who has tied its fortunes to Microsoft for years is NOT going to update to Vista. A source within the company who was smart enough to hide his identity said the following:

“This isn’t a matter of dissing Microsoft, but Intel information technology staff just found no compelling case for adopting Vista,”

An Intel sock puppet spokesperson sort of confirmed this by saying the company was testing and deploying Vista in certain departments, but not across the company. That my freinds is SPIN.

The article goes on to say that while 30% of business skip any given version of Windows, the number who will skip Vista will be higher:

“….Michael Silver [of Gartner], said that about 30 percent of corporate customers skip any given new version of Windows. But the percentage will be higher for Vista, Mr. Silver predicted. Gartner’s corporate clients that plan to skip Vista, like Intel, do not see value of this upgrade, particularly since it requires new PC hardware at the time when the economy is weak and corporate budgets are tight.”

Perhaps what’s needed is Microsoft CEO Steve Ballmer to meet with Intel CEO Paul Otellini so that he can show the value of upgrading to Windows Vista to him using a cool PowerPoint presentation and perhaps underscoring his points a flying chair or two.