Micron, Wave Systems Collaborate - Analyst Blog

Semiconductor company, Micron Technology Inc. MU recently joined forces with Wave Systems Corp. WAVX, an end-point security provider, to develop solutions to protect against malware attacks on embedded computing platforms.

Wave Systems offers simple, cost-effective solutions that protect the user at the hardware level, eliminating or reducing the need for software layers.  Wave Systems' cloud-based solutions will primarily help Micron to improve its offerings in segments such as fraud protection, advanced persistent threat APT protection, zero-day vulnerabilities, endpoint security as well as threat intelligence services.

An APT is a network attack in which an individual can access any network illegally and remain undetected. It is one of the advanced versions of malware attacks, which causes damage to IP-connected devices.

Per a joint report from IDC and the National University of Singapore NUS, enterprises are expected to spend approximately $500.0 billion globally to fight malware and data breaches in 2014. We believe that growing cyber-attacks will boost demand for new security products from enterprises.

We believe that partnering Wave Systems will strengthen Micron's technical capabilities, which in turn will enhance mobile and application security. It will also help in effectively countering fraud and detecting malware attacks.

Furthermore, Micron, with this collaboration, will deliver greater network reliability and compatibility. The partnership will also help Micron to fight cybercrime, as it will help it to expand in the fast-growing cyber security market.

Apart from this, Micron is also positive about its product launches and the growing demand for its products, particularly SSD products.

Additionally, the acquisition of Elpida has brought Apple Inc. AAPL on to the customer roster, which is a positive for future growth. The company is also optimistic about supply/demand balance for DRAM and NAND memory chips in 2014, which should support prices.

Despite these positives, it may not be easy for Micron to take share from SanDisk Corp SNDK, a key player in the NAND zone. Nevertheless, with support from Apple, its prime NAND customers, the situation could turn in Micron's favor going forward.

Currently, Micron has a Zacks Rank #2 (Buy).