Software Industry Announcements and News
Intel to Acquire McAfee
[ No Comments ] Posted on 08.19.10 under Business
SANTA CLARA, Calif., Aug. 19, 2010 – Intel Corporation has entered into a definitive agreement to acquire McAfee, Inc., through the purchase of all of the company’s common stock at $48 per share in cash, for approximately $7.68 billion. Both boards of directors have unanimously approved the deal, which is expected to close after McAfee shareholder approval, regulatory clearances and other customary conditions specified in the agreement.
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.
McAfee, which has enjoyed double-digit, year-over-year growth and nearly 80 percent gross margins last year, will become a wholly-owned subsidiary of Intel, reporting into Intel’s Software and Services Group. The group is managed by Renée James, Intel senior vice president, and general manager of the group.
“With the rapid expansion of growth across a vast array of Internet-connected devices, more and more of the elements of our lives have moved online,” said Paul Otellini, Intel president and CEO. “In the past, energy-efficient performance and connectivity have defined computing requirements. Looking forward, security will join those as a third pillar of what people demand from all computing experiences.
“The addition of McAfee products and technologies into the Intel computing portfolio brings us incredibly talented people with a track record of delivering security innovations, products and services that the industry and consumers trust to make connecting to the Internet safer and more secure,” Otellini added.
“Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow,” said James. “This acquisition is consistent with our software and services strategy to deliver an outstanding computing experience in fast-growing business areas, especially around the move to wireless mobility.”
“McAfee is the next step in this strategy, and the right security partner for us,” she added. “Our current work together has impressive prospects, and we look forward to introducing a product from our strategic partnership next year.”
“The cyber threat landscape has changed dramatically over the past few years, with millions of new threats appearing every month,” said Dave DeWalt, president and CEO of McAfee. “We believe this acquisition will result in our ability to deliver a safer, more secure and trusted Internet-enabled device experience.”
McAfee, based in Santa Clara and founded in 1987, is the world’s largest dedicated security technology company with approximately $2 billion in revenue in 2009. With approximately 6,100 employees, McAfee’s products and technologies deliver secure solutions and services to consumers, enterprises and governments around the world and include a strong sales force that works with a variety of customers.
The company has a suite of software-related security solutions, including end-point and networking products and services that are focused on helping to ensure Internet-connected devices and networks are protected from malicious content, phony requests and unsecured transactions and communications. Among others, products include McAfee Total Protection™, McAfee Antivirus, McAfee Internet Security, McAfee Firewall, McAfee IPS as well as an expanding line of products targeting mobile devices such as smartphones.
Intel has made a series of recent and successful software acquisitions to pursue a deliberate strategy focused on leading companies in their industry delivering software that takes advantage of silicon. These include gaming, visual computing, embedded device and machine software and now security.
Home to two of the most innovative labs and research in the high-tech industry, Intel and McAfee will also jointly explore future product concepts to further strengthen security in the cloud network and myriad of computers and devices people use in their everyday lives.
On a GAAP basis, Intel expects the combination to be slightly dilutive to earnings in the first year of operations and approximately flat in the second year. On a non-GAAP basis, excluding a one-time write down of deferred revenue when the transaction closes and amortization of acquired intangibles, Intel expects the combination to be slightly accretive in the first year and improve beyond that.
Intel was advised by Goldman Sachs & Co. and Morrison & Foerster LLP. McAfee was advised by Morgan Stanley & Co. Inc. and Wilson Sonsini Goodrich & Rosati, P.C.
About Intel
Intel (NASDAQ: INTC) is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices. Additional information about Intel is available at newsroom.intel.com and blogs.intel.com.
About McAfee
McAfee, Inc. (NYSE: MFE), headquartered in Santa Clara, California, is the world’s largest dedicated security technology company. McAfee is committed to relentlessly tackling the world’s toughest security challenges. The company delivers proactive and proven solutions and services that help secure systems and networks around the world, allowing users to safely connect to the Internet, browse, and shop the web more securely. Backed by an award-winning research team, McAfee creates innovative products that empower home users, businesses, the public sector, and service providers by enabling them to prove compliance with regulations, protect data, prevent disruptions, identify vulnerabilities, and continuously monitor and improve their security. http://www.mcafee.com.
Microsoft Investigators Uncover Emerging Form of Click Fraud
[ Comments Off ] Posted on 05.19.10 under Business, Security & Privacy
REDMOND, Wash. — May 19, 2010 — Microsoft Corp. has filed two lawsuits this week in the U.S. District Court for the Western District of Washington detailing evidence of an emerging form of click fraud in online advertising the company has dubbed “click laundering.” One lawsuit is a John Doe suit alleging that unidentified defendants engaged in this activity; the other lawsuit names Web publisher RedOrbit Inc. and its president, Eric Ralls, as defendants. Click laundering, a previously unknown form of pay-per-click (PPC) advertising fraud, was uncovered by Microsoft investigators following dramatic and irregular growth in click traffic on two sites within its Microsoft adCenter network. Investigators believe that had the click laundering scheme gone undetected, the perpetrators could have defrauded advertisers of hundreds of thousands of dollars.
“Online ad fraud is evolving in sophistication all the time. Fighting it demands vigilance and dedication to an honest and secure online marketplace. We believe that a trusted marketplace is critical to Internet commerce, and Microsoft will continue to take aggressive action working with industry and law enforcement to protect our platforms, customers and advertisers,” said Brad Smith, senior vice president and general counsel for Microsoft.
PPC fraud, also known as click fraud, is a type of Internet fraud in online advertising that occurs when a person, automated script or computer program imitates a legitimate website visitor by clicking on an ad to generate a charge-per-click without having actual interest in the target of the ad’s link. Microsoft adCenter monitors click traffic carefully to prevent advertisers from being charged for non-valid clicks, and Microsoft has been active in investigating and taking action against click fraud when found, including taking legal action where necessary.
Click laundering is a newly uncovered form of click fraud in which technical measures are used to make invalid ad clicks appear to originate from legitimate sources. It is analogous to money laundering in which the origin of illegal profits is disguised as legitimate. Click laundering attempts to avoid fraud detection systems that have been put in place by the ad platform — in this case, Microsoft adCenter — to protect online advertisers. Through various means, including malware programs, fraudsters are able to trick innocent Internet users into visiting websites where they unknowingly click on advertisements. Click launderers also can further disguise the origin of those invalid clicks by using scripts and other methods to alter information that is sent to the ad platform.
Microsoft is filing these lawsuits to help protect its ad platform and promote the integrity of online advertising for the benefit of all legitimate advertisers, to stop the fraudulent behavior, and to recover the damages caused by the click laundering. These actions are part of an ongoing effort by Microsoft Advertising and the Microsoft Digital Crimes Unit to work with others across the industry to identify and address emerging threats to the integrity of the online advertising ecosystem through technical and legal means. This week, Microsoft closed another lawsuit the company filed in 2009 regarding click fraud in auto insurance verticals and World of Warcraft, following a successful settlement with defendant Eric Lam. Terms of the settlement are confidential, but the lawsuit successfully brought the click fraud activities described in the complaint to an end and helped Microsoft further refine and evolve its approach to combating click fraud. Such cases demonstrate the evolving nature of fraud in online advertising and the need for ongoing investments across the industry to maintain a healthy Internet marketplace.
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.
Big Jump Predicted in Use of e-Discovery, CompTIA Survey Reveals
[ Comments Off ] Posted on 05.11.10 under Business
OAKBROOK TERRACE, Ill.–(BUSINESS WIRE)–Organizations will increase their use of electronic discovery, according to new research from CompTIA, the leading trade association for the world’s information technology (IT) industry.
The CompTIA study shows 88 percent of attorneys surveyed expect law firms to engage in e-discovery processes more frequently as more and more cases involve electronic information.
Among more than 650 IT professionals surveyed, 53 percent expect the use of e-discovery within their organizations to increase over the next few years.
E-discovery conventionally refers to the discovery process in civil litigation using electronically stored information. However, many firms routinely engage in data collection and informal investigations related to personnel matters, violations of company policies and security breaches that never involve the legal system but may nonetheless fall under the umbrella of e-discovery.
The CompTIA survey identified situations that most often trigger the use of e-discovery. They include:
* Investigating an employee suspected of violating company rules (cited by 66 percent of survey respondents)
* Security breach stemming from an outside threat (62 percent)
* Pending lawsuit (60 percent)
* Intentional internal security breach (53 percent)
* Unintentional internal security breach (44 percent)
Fifty percent of organizations surveyed have already developed an e-discovery strategy, either partial or comprehensive. Another 26 percent indicate that their organization has no official e-discovery strategy but have engaged in e-discovery processes informally. Among organizations that have yet to develop an e-discovery strategy, cost and expertise are cited as the primary reasons.
“Many organizations lack expertise in this emerging area,” said Tim Herbert, vice president, research, CompTIA. “That’s significant because the increasingly connected and digital world in which companies operate means the number of situations calling for e-discovery will only grow.”
Given this rising need for more expertise, more opportunities should exist for IT solution providers with the right skills and expertise.
“IT companies that offer services such as security, data storage and archiving may find opportunities to expand their business and their client base by becoming an e-discovery resource,” said Herbert.
Among the steps IT firms can take to enhance their e-discovery credentials: get employees trained in e-discovery; stay up to date on the regulatory environment; and learn and follow industry best practices for conducting e-discovery.
The CompTIA study E-Discovery Trends and Practices offers insights into current understand e-discovery practices, policies, and training among both IT professionals and attorneys. The online survey was administered during the fourth quarter of 2009 with 665 IT professionals and 271 attorneys participated in the U.S.-based survey. The complete study is available at no cost to CompTIA members who can access the report at www.CompTIA.org or by contacting research@comptia.org.
About CompTIA
CompTIA is the voice of the world’s information technology (IT) industry. Its members are the companies at the forefront of innovation; and the professionals responsible for maximizing the benefits organizations receive from their investments in technology. CompTIA is dedicated to advancing industry growth through its educational programs, market research, networking events, professional certifications, and public policy advocacy. For more information, visit www.comptia.org or follow CompTIA on Twitter at http://www.twitter.com/comptia.
IT Industry Business Confidence Highest among Companies in China and India
[ Comments Off ] Posted on 05.05.10 under Business
More Sober Outlook on Future Business Climate from Firms in Canada, UK and US
OAKBROOK TERRACE, Ill.–(BUSINESS WIRE)–Information technology (IT) companies in China and India are notably more bullish on prospects for business growth in the next six months than their counterparts in the United States, United Kingdom and Canada, according to a new survey from CompTIA, the leading trade association for the global IT industry.
The CompTIA IT Industry International Business Confidence Index finds that business confidence trends are well above the global average among IT companies in China (77 on a 100-point scale) and India (76). Among other countries, Canadian sentiment falls roughly at the average (64), while business confidence among IT companies in the United States and United Kingdom lags slightly behind the global average.
Confirming the strengthening economies in many parts of the world, the overall index recorded a jump of nearly nine points in March 2010 since the previous reading in October 2009. Looking ahead, IT companies expect further improvements, reflected in their six-month confidence forecast of 68, up nearly 4 points over the March 2010 reading.
“The IT industry held up relatively well during the global economic downturn,” said Tim Herbert, vice president, research, CompTIA. “This research is another sign the IT industry is well positioned to out-perform many other industry sectors over the next year.”
The CompTIA IT Industry International Business Confidence Index also reveals that after a period of cutting or maintaining costs, a number of IT companies are looking to invest in their business.
“Nearly two-thirds expect to increase spending over the next six months on revenue-generating initiatives such as research and development; while 58 percent expect to increase spending on technology,” Herbert noted.
Though unemployment has been persistently high in many countries, the CompTIA survey data suggests hiring may start to pick up. Among all IT companies surveyed, 42 percent expect to increase hiring in the next six months, with companies in China and India having the highest expectations for staffing increases. But as a sign of the still fragile recovery, 13 percent of all respondents indicate they expect to cut staff in the next six months.
Global IT industry growth is forecast to range from flat under the most pessimistic scenario to an increase of 4.5 percent under the most optimistic scenario. Firms are slightly most bullish on IT services growth, followed by software and hardware. Firms in India see the most upside to global IT industry growth at 5.5 percent, while Canadian firms express the most concern.
Perceived threats to economic growth vary by country, the CompTIA survey indicates. U.S. IT companies are relatively more concerned about weak consumer demand, while firms in the UK voice concern about weak corporate demand. China is concerned about exports and India about domestic competition. Canadian companies believe a general lack of confidence could inhibit growth in their market.
The CompTIA IT Industry International Business Confidence Index is based on an online survey of more than 850 IT companies in more than 70 countries conducted in March. The full report is available at no cost to CompTIA members who can access the report at www.CompTIA.org or by contacting research@comptia.org.
About CompTIA
CompTIA is the voice of the world’s information technology (IT) industry. Its members are the companies at the forefront of innovation; and the professionals responsible for maximizing the benefits organizations receive from their investments in technology. CompTIA is dedicated to advancing industry growth through its educational programs, market research, networking events, professional certifications, and public policy advocacy. For more information, visit www.comptia.org or follow CompTIA on Twitter at http://www.twitter.com/comptia.
Digital River Acquires fatfoogoo
[ Comments Off ] Posted on 05.05.10 under ASP Member Companies, Business
Creates industry-leading in-store and in-game commerce solution for game publishers
MINNEAPOLIS–Digital River, Inc., a leading provider of global e-commerce solutions, announced that it has acquired fatfoogoo, a Europe-based, in-game and online commerce service provider. The combined forces of Digital River’s e-commerce solutions with fatfoogoo’s technology will offer game publishers and developers an unparalleled, single e-commerce connection to manage their online product sales both in-store and in-game.
“The sale of virtual goods through micro transactions continues to grow in popularity with consumers and is establishing new revenue models for the games industry,” said Joel Ronning, CEO of Digital River. “With the addition of fatfoogoo, we’ve strengthened our commitment to the gaming marketplace. We believe the combination of our in-game and in-store commerce solution along with our subscription management capabilities will be unmatched in the industry. This partnership continues our promise to provide existing and future clients with the leading e-commerce technology and expertise they expect from Digital River.”
The e-commerce solutions from Digital River and fatfoogoo are easily integrated to offer game publishers all the scalability and reliability of a proven in-store platform along with turn-key technology designed to operate a successful in-game marketplace. In addition to providing in-game store functions, such as global payments and inventory management, the solution supports the use of virtual goods and currencies, electronic wallets, peer-to-peer marketplaces and auction capabilities.
Digital River’s fatfoogoo business unit will continue to operate out of its current location in Vienna, Austria. fatfoogoo will deliver its technology as an integrated part of Digital River’s e-commerce offering for games as well as a stand-alone solution.
“We are excited to join Digital River’s family of companies. This acquisition provides fatfoogoo with the backing of a proven e-commerce leader and enhances our leadership in the European market,” said Martin Herdina, fatfoogoo’s CEO. “Together we’re positioned to lead the future of in-game commerce with a solution that will uniquely stand out in a competitive marketplace.”
Under the terms of the agreement, Digital River acquired fatfoogoo as part of a cash transaction for approximately $10 million. The agreement also provides fatfoogoo shareholders with an earn-out opportunity based on the fatfoogoo business unit achieving certain performance targets. Other terms of the transaction were not disclosed.
About fatfoogoo
fatfoogoo is the leading in-game commerce ecosystem for monetizing online games and virtual worlds. fatfoogoo’s solutions allow both publisher-to-player and player-to-player financial interaction, as well as virtual currency management and traditional user and subscription management. Publishers can choose white label turnkey solutions or individually configured modules.
Founded in 2006, fatfoogoo is headquartered in Austria and also has offices in the U.S. and U.K. For more information, please visit www.fatfoogoo.com.
About Digital River, Inc.
Digital River, Inc., a leading provider of global e-commerce solutions, builds and manages online businesses for software and game publishers, consumer electronics manufacturers, distributors, online retailers and affiliates. Its multi-channel e-commerce solution, which supports both direct and indirect sales, is designed to help companies of all sizes maximize online revenues as well as reduce the costs and risks of running an e-commerce operation. The company’s comprehensive platform offers site development and hosting, order management, fraud management, export controls, tax management, physical and digital product fulfillment, multi-lingual customer service, advanced reporting and strategic marketing services.
Founded in 1994, Digital River is headquartered in Minneapolis with offices across the U.S., Asia, Europe and South America. For more details about Digital River, visit the corporate website at www.digitalriver.com or call +1 952-253-1234.
Economic Optimism Surfaces at Intuit Town Halls
[ Comments Off ] Posted on 04.29.10 under Business
Small Business Owners, Teens and Consumers Discuss Recovery Economy
NEW YORK–Spending, saving and a growing sense of optimism were common topics heard from small businesses, teens and consumers at the Intuit Money Matters Town Hall this week in New York City.
As the Great Recession has taught Americans they can’t afford to ignore their money matters, Intuit Inc. (Nasdaq: INTU), maker of QuickBooks and Quicken, gathered groups of East Coast-based small businesses, teens and consumers to hear how they are surviving and thriving in the “recovery” economy.
Town Hall Highlights
* Small Business – New York-based small business owners are optimistic, with many willing to take risks and expand, despite the uncertain economy. Among their concerns: the ability to offer employee benefits, especially healthcare; the effectiveness of marketing expenses, and getting paid. The session was hosted by Rhonda Abrams, small business expert and author of best-seller, “The Successful Business Plan: Secrets & Strategies” and “Hire Your First Employee,” and Cameron Schmidt, vice president of Intuit’s Employee Management Solutions Division.
* Kids and Money – New York area high school students want to make the most of their money today and learn how to save for the future. Whether it’s paying for prom, or saving for college, becoming financially literate is a priority for today’s teens. Anya Kamenetz, author of “DIY U: Edupunks, Edupreneurs, and the Coming Transformation of Higher Education” and “Generation Debt,” and Aaron Patzer, vice president and general manager of Intuit’s Personal Finance Group and the founder of Mint.com, moderated a lively discussion focused on financial literacy. Emmons Patzer, Aaron’s father, also joined the session.
* Personal Finance – Residents from in and around New York discussed how they’ve changed their financial habits as a result of the recession. They’ve become more aware – setting financial goals, looking closer at spending habits, paying off credit card debt and saving for an emergency. This session was led by Patzer and Beth Kobliner, personal finance expert and author of the New York Times best seller, “Get a Financial Life.” Patzer’s closing advice: “Save. Invest. Be protected.”
Quotes
Cameron Schmidt, vice president of Employee Management Solutions division
* “Now, more than ever, the best resources small businesses have are each other. They are eager to hear from others on what has worked for them, and share their own experiences. At Intuit we’re encouraging important dialogue just like this through our communities of entrepreneurs every day.”
Aaron Patzer, vice president and general manager of Intuit’s Personal Finance Group and Mint.com founder
* “The recession forced Americans to pay attention to essential money matters like budgeting and saving. And that’s made people more comfortable talking about finances. We had a great conversation about how to best help people address immediate challenges to be better able to reach life goals. It’s important to remember that money is for living – it’s not the number that matters, as much as being sure you have what you need to do the things you want in life.”
Intuit Money Matters Town Hall survey findings
The Intuit Money Matters Town Hall Small Business Survey revealed several trends among entrepreneurs:
* Uniting for help
o 64 percent of small businesses said the recession made them more likely to get advice from fellow small business owners.
* Choosing the small business path
o 62 percent said they would recommend starting a small business to their family or friends, even as they continue facing uncertain financial times.
* Looking to hire
o 52 percent of small business owners with at least one employee said they plan to hire in the next 12 months. That’s up from 44 percent who were surveyed in September 2009. Additional data on small business hiring appears in the Intuit Payroll Index.
The Intuit Money Matters Town Hall Consumer Survey found that:
* The recession fuels more conversations about money:
o 75 percent are now more likely to talk about money issues with their coworkers.
o 39 percent say they now talk more openly about their finances.
* The recession weighs heavy on consumers’ minds:
o One out of three people are losing sleep over money – more than their careers or marriages combined.
The full surveys are available at:
* Intuit Money Matters Town Hall Small Business Survey.
* Intuit Money Matters Town Hall Consumer Survey.
Quick links:
* Intuit Town Hall website
* Intuit Town Hall sessions (replays)
* Intuit Town Hall on Twitter
* Satellite coordinates for video footage: Waterfront/accent loop 1625
Resources:
* Intuit Press Room
* Intuit Small Business Employment Index
* Small Business United Blog
* Mint.com blog
About the Survey Results:
Intuit Town Hall Money Matters Consumer Survey Methodology
The findings of the general population poll are based on an Ipsos poll conducted April 8-12 and 15-19, 2010 on behalf of Intuit. For the survey, a nationally representative, randomly selected sample of 1,001 adults (aged 18 and older) across the United States was interviewed via phone by Ipsos. With a sample of this size, the results are considered accurate within 3.1 percentage points, 19 times out of 20, of what they would have been had the entire adult population in the U.S. been polled.
All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error and measurement error. These data were weighted to ensure that the sample’s composition reflects that of the actual U.S. population according to U.S. Census figures.
Intuit Money Matters Town Hall Small Business Survey Methodology
These are some of the findings of an Ipsos survey conducted online, April 15-20, 2010, with 300 small business owners in the U.S. The survey was conducted online among Ipsos panel members (aged 18 and older) who reported owning or operating their own small business.
All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error and measurement error. Data cited prior to April 2010 is from previous surveys. Please contact Intuit for more information on those specific methodologies.
About Intuit Inc.
Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit’s leading tax preparation offerings for professional accountants. Intuit Financial Services provides enhanced online banking solutions and unique insights to help banks and credit unions serve businesses and consumers with innovative solutions.
Founded in 1983, Intuit had annual revenue of $3.1 billion in its fiscal year 2009. The company has approximately 7,800 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at www.intuit.com.