Intel tackles VPN with Shiva buy

Intel tackles VPN with Shiva buy

Intel on Monday announced it will buy Shiva, a maker of remote access and virtual private network products for small-and-medium sized businesses, for approximately $US185 million.

Separately, Intel is also taking a stake in software maker Relativity Technologies.

Intel does not plan any immediate changes to Shiva's product line, though eventually it will be integrated into Intel's own networking product line, according to Mark Christensen, who is with the network products division at Intel.

Though networking does not immediately make most people think of Intel, networking is important to the company, Christensen said.

"The Intel architecture can play a major role in networking," Christensen said.

No immediate layoffs are imminent for Shiva's approximately 450 staff, but Intel did not rule them out entirely.

"We don't see any major impact but there will be some shifting of resources," Christensen said.

One analyst said that no leader has yet emerged in virtual private networking and Intel could certainly claim a major space in offering that type of remote access. For $US185 million, Intel gets to test the market, which was a smart move, said Brad Baldwin, an IDC analyst.

"I think that Intel sees that the growth is still there for remote access," Baldwin said.

Separately, Relativity this week announced that Intel has made an investment in it of an undisclosed amount. Relativity makes applications, including RescueWare, that are designed to automate the migration of legacy computer applications to Internet and client/server architectures.

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