In some past cases where big IT vendors acquired
stand-alone security software companies, customers were dismayed to
find the quality of their security tools and services diminished:
Cisco Systems promises that won't happen with its newly-acquired
IronPort technology and staff.
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| Mergers and acquisitions at a
glance: | There have been many acquisitions and mergers between IT
security vendors and other companies in the last two and a half
years. Here is a look at some of them:  -- JUNE 2007:
HP announces it will acquire SPI Dynamics.
-- JUNE 2007:
IBM announces it will acquire risk management software vendor
Watchfire .
--FEBRUARY 2007:
EMC announces a definitive agreement to acquire data security firm
Valyd Software . -- JANUARY 2007: Symantec Corp. signs a definitive agreement to
acquire IT management software vendor Altiris Inc. for
approximately $830 million. -- JANUARY 2007: Cisco Systems Inc. announces plans to buy
Internet security gateway appliance vendor IronPort Systems for
$830 million.
-- JANUARY 2007: Fortify Software Inc announces its acquisition of
Secure Software Inc. -- DECEMBER 2006: IBM announces plans to acquire Consul Risk
Management Inc., whose software tracks employee behavior and
unauthorized records access. -- SEPTEMBER 2006: EMC Corp. announces its $175 million
acquisition of security event management vendor Network
Intelligence Corp. -- AUGUST 2006: IBM announces the $1.3 billion acquisition of
Internet Security Systems Inc. (ISS) to bolster its position in the
managed security services market. -- JULY 2006: Secure Computing Corp. announces its acquisition
of messaging security firm CipherTrust Inc. for $273.6
million. |
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"We've lost none of our engineers [in the acquisition]," Scott
Weiss, former CEO of IronPort and now general manager of the
IronPort Business Unit, said last week. "We're not merging IronPort
into Cisco. We'll still have the same team, the same office and I
don't think the culture is going to change. We're keeping the band
together."
The networking giant announced that it has completed the
acquisition of Internet security gateway appliance vendor IronPort
Systems Inc. for $830 million in cash and stock, and will add
IronPort's email and messaging security features into its security
product set. Cisco said the acquisition is also a major step
forward in the evolution of
Cisco's Self-Defending Network
initiative.
IronPort was founded in 2000 and has 3,000 customers. Its 400
employees are expected to remain on board and the company will
continue to run as a separate business unit in Cisco's Security
Technology Group.
The IronPort acquisition reflects the larger trend of
consolidation in the IT security market, as standalone security
vendors struggle to survive and big IT infrastructure providers use
acquisitions to integrate more security into its product
development lifecycles. In the last month, for example,
HP has announced its acquisition of SPI Dynamics and
IBM has announced its purchase of Watchfire.
While IT professionals have lauded the smoothness of some
acquisitions, such as the merging of
Internet Security Systems (ISS) into IBM and
the merging of
CipherTrust . into Secure Computing., they
say they've watched other vendors buy up good security
technology only to let it languish.
During the meeting with editors from SearchSecurity.com and
Information Security magazine, Weiss and Mick Scully, VP of product
management in Cisco's Security Technology Group, promised a
seamless integration in which IronPort's talent base is retained
and more investments are made in the company's technology. Scully
noted that one of the things Cisco looks for when making an
acquisition is the talent of the company in question. He added that
there has been very little turnover after past acquisitions.
Weiss said keeping good people has a lot to do with company
culture and that IronPort and Cisco have established cultures that
retain talent.