Intel to Buy Mashery

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April 18, 2013 – PC and processing stalwart Intel has reportedly made an offer to purchase API tech and services vendor Mashery.

As of Thursday morning, neither vendor had officially released details on the proposed deal, though multiple sources confirmed the news to U.K.’s The Register and The New York Times’ AllThingsD. Intel officials did not reply to requests for comment Thursday. Mashery appeared to confirm the deal on Twitter in various congratulatory replies and retweets.

Mashery offers customizable platforms for application programming interfaces in the cloud and on-premise, with an emphasis on mobile connections. Based in San Francisco with offices in New York City and Boston, the vendor was founded in 2006 and counts more than 170 customers, including Comcast and Hoover’s, and a network of 200,000 developers.

Eric Knipp, managing VP of application platform strategies at Gartner Research, says that, from the vendor perspective, a partnership between Intel and Mashery that began late last year showed strong, complementary benefit. In the bigger picture, the deal suggests Intel “didn’t need much time to understand” the beneficial connections between SOA governance and API management.

“For Mashery, involvement with Intel provided sorely needed enterprise credibility and access to more effective sales channels for enterprise IT; for Intel, Mashery injected new relevance and capability into its XML gateway product,” Knipp says.

The Gartner analyst adds that this deal may be of note as part of the quick consolidation of the pure-play API vendor market.

The proposed deal comes two days after Intel followed through on financial expectations of increases in the first quarter of 2013, to the tune of $12.6 billion in revenues it attributed in part to strong PC microprocessor sales. Intel piggybacked on that quarterly earnings report by outlining new software and hardware for the networking infrastructure aspects of data centers and virtualized environments, which it noted was a response to increased enterprise investment on mobility and the cloud. Earlier this week, Intel and Cisco were both announced as lead players in extended open source cloud partnerships with Red Hat and its OpenStack efforts.

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