http://www4.gartner.com/DisplayDocument?doc_cd=108426 Symantec Bolsters Security Offerings With More Acquisitions 19 July 2002 Richard Stiennon Matthew Easley Kelly Kavanagh John Pescatore Symantec bought four security companies, three of which may spur worries about product independence. Although the deals may trigger more merger and acquisition activity, Gartner sees no significant market shift. Event On 17 July 2002, Symantec announced it acquired three companies - Recourse Technologies, Riptech and SecurityFocus - for a total of approximately $355 million in cash. On 2 July 2002, Symantec also bought Mountain Wave for $20 million in cash. First Take A slump in venture valuations is a timely opportunity for an industry leader, such as Symantec, to snap up good technology. The acquired companies will gain from access to Symantec's capital, development capabilities, sales channels and the power of its brand. Although Symantec gains by bolstering its roster of products and services, it still needs to convince enterprises that Riptech, Security Focus and Mountain Wave will not be driven by Symantec's product line. Riptech was a leader in the North American managed service security provider (MSSP) market (see "2H01 Managed Security Service Provider Magic Quadrant," M-15-2949). With secure-operations-center assets it picked up from its acquisition of Axent in 2000, Gartner believes that Symantec's combined MSSP business will represent one of the largest in North America. Riptech customers should expect continued high levels of service. Symantec's challenge is to avoid channel conflict that arises from being a firewall, intrusion detection system (IDS), antivirus and (with Mountain Wave) monitoring software vendor while trying to maintain a service arm that is product-independent. Recourse Technologies has useful tools - its ManTrap "honeypot" (a decoy system to lure and learn from attackers) and ManHunt high-speed IDS appliance, which fills a hole in Symantec's product line. However, Symantec must develop an enterprise sales story for network IDS at a time when the overall IDS market is heading toward replacement by intrusion prevention techniques. SecurityFocus is a leading source of independent security information on the Web. Security intelligence is a core competency, and one Gartner believes Symantec should lead in, but it will never be a high-revenue market. Symantec gains by acquiring solid intellectual property and a fit with its antivirus labs. But the challenge is to maintain SecurityFocus as an independent, journalistic source for data on all security products. Gartner advises enterprises to purchase best-of-breed security products that deliver the best return on investments, meaning better security. Although consolidation will likely continue in the security market, and other security companies will be compelled to shadow Symantec's moves, Gartner doesn't believe that there are any new reasons to adopt a one-stop-shopping approach for security offerings. Analytical Sources: Richard Stiennon, Matt Easley, Kelly Kavanagh and John Pescatore, Gartner Research Recommended Reading and Related Research * "Symantec Must Resolve Overlaps After Buying Mountain Wave" (FT-173343). Symantec must rationalize its firewall and IDS product line and move toward intrusion protection. By John Pescatore, Matt Easley and Richard Stiennon * "Enterprise IT Security Management Defined" (DF-15-7763). Gartner's model helps enterprises evaluate security management software and services. By Mark Nicolett, John Pescatore, Matt Easley, Alain Dang Van Mien and Richard Stiennon - ISN is currently hosted by Attrition.org To unsubscribe email email@example.com with 'unsubscribe isn' in the BODY of the mail.
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