According to analysts, Intel's acquisition of Security Company McAfee could help the chip maker publicize in embedded markets, in which the company has struggled to establish a presence.

Intel announced plans to acquire McAfee for US$7.68 billion, as this will help the chip maker blend advanced hardware and software security to protect devices from internal and external threats.

Intel CEO Paul Otellini, during a conference call said that the bottom line will better protect Internet users and their devices.

Renee James, senior vice president of Intel's Software and Services Group responded that the strategic partnership will be released in the early part of 2011.

But some analysts were baffled by the acquisition as there was little connection between the companies, and raised questions on how Intel would implement McAfee's software. Intel is primarily a chip maker and does not sell PCs or mobile phones directly to customers, while McAfee is known for its malware products.

Other analysts thought the acquisition made sense as security enablement is becoming essential. Analysts said that the Company's strategy has been to use software to augment those platforms, and the McAfee acquisition could allow it to offer a comprehensive combination of secure hardware and software, which could help sell more chips.

Jim McGregor, chief technology strategist said that Intel wants to make a mark in the high-volume smartphone space, which is currently dominated by Arm and implementing some of McAfee's software stack in smartphone hardware could add value in Intel's offerings, giving it an edge over competitors.

But like some analysts, Mogull said that Intel may have overpaid for McAfee.

Nathan Brookwood, principal analyst at Insight 64 said that Intel could start off by designing its hardware to work better with McAfee software. It takes time for chip designers to program, develop and implement changes inside silicon, so hardware-level implementations could take three to four years.

Intel owned an antivirus business, but sold it to Symantec in 1998. McAfee already offers security software for deployment in embedded and mobile devices, and recently announced plans to acquire security companies focused on the mobile market.