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Intel buys Mashery for its services division

Important to keep its margins high
Thu Apr 18 2013, 11:30
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CHIPMAKER Intel has bought software outfit Mashery as part of the firm's push into software services.

Intel formed its Services Division in 2011 in a bid to have a potential revenue stream from devices that don't use its chips. Now the firm has bought Mashery, a company that offers developers a way to manage application programming interfaces (APIs) for an undisclosed amount.

Intel confirmed its purchase of Mashery to The INQUIRER and said that the team will report to its Services Division. Intel also said that it will offer jobs to the majority of Mashery's 125 employees.

Mashery's library of third party API services provides developers with a hub for managing access to services. The firm's links to other services could be valuable to Intel in the future as it tries to build up a high margin services business.

An Intel spokesperson said, "This acquisition is the next step in building an integrated Intel suite of services (cloud services, digital store fronts, location services, network services and security). Mashery brings technology and expertise in the management and exposure of enterprise APIs.

"Mashery's expertise in key verticals will enable Intel to further provide user experiences enhanced by service capabilities."

Intel has started to take software based services increasingly seriously as a way of hardening its revenue generation prospects and this acquisition will fit in nicely with the firm's various app stores, as well as if it really does launch a television service. Intel might wield a lot of clout with hardware makers, but unless it invests heavily in developer services such as Mashery it might find the take-up of its services to be limited.

Intel said that it expects to close the purchase of Mashery this quarter. µ

 

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