IBM Means Security Business With US$1.3 Billion Acquisition
IBM Means Security Business With US$1.3 Billion Acquisition
August 24th, 2006: Although neither company would admit it, IBM and EMC are now going head-to-head with each other in a high-stakes game, where money would appear to be no barrier.
Although acquisitions such as IBM's approximately AU$1.7-billion take-over of security provider, Internet Security Systems, take time to plan - let alone announce - it has to be said that entering the security space bears all the hallmark's of a direct attack on EMC.
EMC's swallowing of RSA Security has more to do with encrypting data, while ISS's offerings operate from data centre's providing managed services. Two points, however, are abundantly clear:
1) Security is now high enough up the agenda to encourage a big players to invest big bucks.
2) The big bucks are available.
3) The IT market is consolidating.
Internet Security Systems provides security solutions to thousands of the world's leading companies and governments, helping to proactively protect against internet threats across networks, desktops and servers. ISS software, appliances and services monitor and manage network vulnerabilities and exploits and rapidly respond in advance of potential threats.
"Clients increasingly recognise that security must become a network-integrated business process rather than a reactive response to individual threats," said Tom Noonan, President and CEO of ISS. "By delivering an integrated security platform that is adaptable and extensible to address new threats and business requirements without incremental complexity and cost, ISS has delivered the foundation for delivering security as a service. These on-demand capabilities, together with our managed security services, appliances and software will further bolster IBM's leading security services and products as we take this innovation out to a larger, global stage."
In short, IBM is ramping up its security products but is simultaneously developing its service-based offerings. Service-delivered 'solutions' - rather than software-in-a-box, are now considered to be the way of the future.
IBM will utilise ISS' X-Force security intelligence service, which proactively protects networks with detailed analyses of global online vulnerabilities and threat conditions. The ISS global network of security operations centers (SOCs), which include sites in Tokyo, Brussels, Brisbane, Detroit and Atlanta, will also be added to IBM's existing global network of SOCs. IBM security consultants and global sales force will also offer ISS' line of security appliances and software, and fully enable it for IBM and third party products, services and solutions.
ISS has more than 11,000 customers worldwide including 17 of the world's largest banks, 15 of the largest governments, 11 of the top public insurance companies and 13 of the world's top IT organisations. ISS also brings to IBM a network of business partners skilled in selling the ISS product line and an expanded product set to the IBM Business Partner channel.