Thursday, August 26, 2010

Qualcomm Services Labs - What's the thought process?

Qualcomm Incorporated today unveiled Qualcomm Services Labs, Inc. (QSL), a wholly owned subsidiary created to develop and introduce new services and applications that tap into the advantages of mobile technology.
I wonder, why Qualcomm, the biggest wireless semiconductor supplier entering into mobile application development. Traditionally mobile application is offered through the mobile manufacturers or Mobile application development companies whose primary business is to develop mobile applications based upon close ended application framework or open source and sell it to enterprise or retail customers through service providers. Does it mean, Qualcomm intend to exploit mobile applications business? It’s very unlikely!!
I think Qualcomm thought process for establishing SQL to develop mobile applications which are much optimized for Qualcomm chipset like Apple claims their applications on App store are highly optimized for iPhone display to provide greater user experience. This will attract mobile handset manufacturers for Qualcomm platforms in Smartphone market segment.
Other aspect would be to patent the ideas behind innovative applications. Qualcomm is highly focuses on IP business which is not only the source of major revenue but also gives the technology leads in the domain.

Intel’s acquisition of McAfee

Intel’s acquisition of McAfee at $7.7 billion is bigger head scratcher then their previous acquisition of Wind River. But I am pampered to relate this acquisition with the rumor of Intel’s acquisition plan for Infineon. This acquisition weakens the rumor since after spending so much money on this acquisition, despite Intel may have cash reserve in billions but would not like to get exhausted fully. Secondly, diverting the aim from wireless business because the McAfee security SW are PC focused. I guess Intel would have not spent $7.7 for security software to embed in chips. It means a strong possiblity of Intel having plan to expand the business on software and service business model (e.g. similar to IBM) and does not want to rely revenue only from silicon. Intel paid $48 a share for McAfee on Thursday, 60 percent premium over the previous day's close. It indicates how desperate Intel was for this deal which must be linked with Intel’s aggressive plan for expanding the product portfolio.