Intel Set To Purchase German Based Networking Company Lantiq
To make an even bigger mark on the Internet technology field, Intel has decided to buy Lantiq, a German company that makes broadband access and home networking tech. With the acquisition of the Munich-based maker of networking chips, Intel wants to extend its home gateway business, it said Monday.
The acquisition aims to broaden Intel’s offering to gateway markets including DSL, fiber and LTE. The deal is expected to be completed within 90 days however, Intel has not disclosed the terms of this acquisition.
All the chip companies such as Intel and AMD are in an unofficial battle for the so-called Internet of Things (IoT), to make sure Internet connectivity is available to as many devices as possible. To further its goals, Intel is hoping that their acquisition of Lantiq will help them by combining Intel’s cable gateway business with Lantiq’s expertise to provide new products capable of connectivity.
IoT has been a focus of investment for Intel for a while now. It would like to see its low-power chips used in sensors and wearables, and launched its own IoT platform last year, combining hardware, software and partnerships to allow its customers to quickly design complete systems.
The gateway business allows data to be pulled from legacy equipment through the use of hardware and software without having to replace existing infrastructure.
The tech giant is already working with partners such as SAP, Dell and Accenture for building and deploying such systems.
With billions of devices expected to join the Internet over the next few years, the IoT market could become quite lucrative but then again, there is also the concern of consumer privacy which is why an official at the US Federal Trade Commision warned during CES last month that companies should put a lot more focus on consumer privacy and security.
Constantly collecting data from connected devices could undermine consumer trust, which could in turn be bad for business as trust is key to adoption of IoT tech, she said.
Similar concerns were raised earlier last year as well and by none other than Intel’s IoT chief Doug Davis.