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Intel to Buy API Maven Mashery

It said the Mashery deal would let it develop an integrated suite of services like cloud services

Sometime this quarter Intel expects to close on its just revealed intended purchase of Mashery, a seven-year-old multi-tenant SaaS start-up that manages API technology - APIs being the lingua franca of the Internet.

Intel already has its own Expressway API Manager.

Terms were not disclosed but the rumor is Intel is spending something like $120 million or $180 million on the acquisition.

The ReadWrite Web blog, which says it's covered Mashery closely for some time, figures the "implications of the deal are huge: it signals Intel's recognition that the central processing unit is no longer a silicon chip. It is the network."

And evidently, like IBM, software and services are the place to retreat to. Remember, Intel bought McAfee for $7.7 billion in 2010. Now it's supposedly appealing more to start-ups than the old-line PC houses.

Mashery is seen as giving Intel a more credible position in cloud infrastructure.

Intel said the Mashery deal would let it develop an integrated suite of services like cloud services, digital store fronts, location services, network services and security.

Coincidently the Mashery news broke just as Intel was announcing its new networking software at the Open Networking Summit.

According to CrunchBase Mashery has raised $34.7 million since 2007, some of it from Cisco, which may now find itself in competition with Intel. One of Mashery's many backers is Salesforce CEO Marc Benioff. Its latest valuation was reportedly $60 million.

Mashery claims over 170 top brands as customers including USA Today, Netflix, ESPN, D&B, Expedia, The New York Times, Comcast, Hoover's, Klout, the AP, Coca-Cola and Travelocity, which have used its API securing, exposing, and managing skills to build new revenue channels.

It also claims 200,000 developers who have created something like 44,000 active applications.

Intel will reportedly absorb most of Mashery's 125 people and make them part of its low-profile loss-making Services Division run by Renee James as part of Intel's software interests.

Functionally, Mashery's technology is said to be equivalent to that pioneered by MuleSoft. Its widgetry is also available as an on-premise kit under the name Mashery Local.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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