Cisco acquires Psionic Software

Cisco last week acquired intrusion-detection system software maker Psionic Software for $12 million in stock.

The move, Cisco's fifth acquisition this year, is aimed at improving Cisco's IDS product line, which includes hardware-based appliances and server-based software products. Cisco says it hopes to introduce new IDS products based on technology from Psionic that will reduce the amount of false alarms in IDS systems. Cisco says Psionic software could help reduce such alarms by up to 95%.

This could help companies by letting IT and security staff take action only on legitimate network-based security threats instead of wasting resources and time on nonthreatening network events that IDS misidentifies.

IDC estimates that IDS products and services will account for almost one-fifth of the $13 billion IT security market next year.

Psionic was founded in Austin, Texas, in 1996. Its products include ClearResponse, an IDS analysis software product; and TriSentry, a suite of port-scanning detection and host-based IDS tools. The company's eight employees will move to Cisco's VPN and Security Services business unit. Products from this group include PIX firewalls, IDS host sensors, and the 3000 and 7000 series of VPN routers, concentrators and hardware clients.