* Heavyweight vendors snap up security buys
In recent weeks, we have seen a significant acceleration of the convergence of security companies with players dominant in broader aspects of IT. EMC’s acquisition of RSA Security earlier this summer, for example, was followed by news that IBM plans to buy Internet Security Systems. Does this signal a new trend in the consolidation of security with enterprise leadership, or are these just larger deals?
In a sector characterized by hundreds if not thousands of small, early-stage companies looking for a successful exit via acquisition by a recognized brand, the security market has been about consolidation virtually from its beginnings. What is different now is that these security players don’t have just one or two offerings but a portfolio of security products that often set the pace of the market, and they are being bought by broad-based companies.
For the larger vendors, there is a pragmatic aspect to this consolidation. Spurred by the dominance in security by vendors such as Cisco and Microsoft, and facing an increasing threat from the likes of Oracle in strategically valuable markets such as application security, these vendors can ill afford to sit idly by. The existing security offerings of these broad-based vendors may be segment leaders in their own right – but this is different from dominance of the wider security market, which is where many of the recent consolidations are focused.
The greater significance of this trend can be found in the longer view. The consolidation of security leadership represents the “mainstreaming” of security at a new level. Security threats have become so pervasive that they impact virtually every aspect of IT and IT managers are being held accountable for containing those threats as never before (see “IT execs feel the heat as security woes multiply”). With the emergence of new technologies and approaches to enterprise integration, a range of new risks may appear to threaten the products of these broad-based players. Without the integration of security into their offerings – or at least, without the integration of a mature level of security awareness in their development – customers simply will not see these technologies as trustworthy.
In short, security has finally become recognized by enterprise vendors, not just as a necessary specialty but also as an integral aspect of enterprise IT. To secure their future in an increasingly risky world, broad-based vendors can be expected to continue to consolidate with security specialists, not just to support their lead in emerging technologies, but as a foundation for their credibility going forward.
This trend is just one of several that are reshaping the management marketplace – and changing the landscape of vendors recognized as leaders and influencers in management. We’ll talk about some of the others next week.
