Feeds

EMC adds some Network Intelligence to security line

RSA fully on board too

Build a business case: developing custom apps

EMC today finished off one security acquisition and then made another one.

The storage maker has completed its buy of RSA for $2.1bn and has plunked down $175m in cash for Network Intelligence. We've lost track of how many software companies EMC has purchased over the past five years, but it's clearly not shy about buying its way into new markets. Network Intelligence's products should provide a nice complement to EMC's expanding security arsenal, according to Allan Krans, an analyst at Technology Business Research (TBR).

"While RSA provided a solid backbone to EMC’s security division, TBR believes the addition of Network Intelligence will greatly enhance the value proposition of EMC’s portfolio," Krans wrote in a research note. "While RSA has strong expertise in token-based authentication and encryption, EMC lacked the intelligent security monitoring functionality Network Intelligence brings to the table. Locking down data is an important capability, but this acquisition lets customers move one step further and take an active role in monitoring their information infrastructure."

The purchase price for Network Intelligence could swell to $250m if certain performance goals are met. TBR estimates that Network Intelligence pulled in about $25m last year.

EMC has demonstrated a penchant for acquiring nearby firms, and the Network Intelligence buy follows this pattern. The private firm with about 125 employees sits in Westwood, Massachusetts - not too far from EMC's Hopkinton base. The two companies also have an existing relationship with Network Intelligence's Security Information and Event Information products being certified on EMC's Centera boxes.

"TBR believes EMC’s purchase of Network Intelligence may be a competitive response to IBM’s recent purchase of Internet Security Systems, which provides many of the same security offerings as Network Intelligence," Krans wrote. "Although IBM maintains a much larger portfolio of security offerings, TBR believes the addition of Network Intelligence will give EMC the two broad security tool sets (lock-down functionality and monitoring functionality) to compete in the security market."

RSA's CEO Art Coviello will head up EMC's new security division, which will still hold the RSA name. EMC used a similar setup when it purchased VMware.

EMC expects the Network Intelligence buy to close by the end of the business day.®

Boost IT visibility and business value

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
Cutting cancer rates: Data, models and a happy ending?
How surgery might be making cancer prognoses worse
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?