Feeds

Google bags hosted security firm Postini for $625m

Adds security muscle to Google apps

Top 5 reasons to deploy VMware with Tegile

Updated Google has announced a plan to acquire on-demand web security firm Postini for $625m cash. The deal, which is subject to regulatory approval, is expected to close by end of the third quarter 2007, after which Postini will become a wholly-owned subsidiary of Google.

Postini's services - which include email filtering, archiving, encryption, and policy enforcement - are used to protect customers' email, instant messaging and other web-based communications from security threats and productivity drains such as spam and viruses. The firm competes with firms such as MessageLabs and BlackSpider (which was bought by SurfControl for around $42m in July 2006, prior to its own $400m acquisition in April 2007).

Postini's technology is used by 10 million users at 35,000 firms worldwide. BlackSpider protects 500,000 users at 1,200 customers (mainly in Europe). The difference in size goes a long way towards explaining why Google paid 15 times more for a similar set of hosted security technologies.

Google said it plans to use Postini's technology to boost the appeal of its Google Apps package of hosted office applications to larger businesses. It also pledged to continued to invest in Postini's existing line of hosted security products.

"The response to Google Apps has been tremendous, with more than 1,000 small businesses signing up for the service every day. At the same time, large businesses have been reluctant to move to hosted applications due to issues of security and corporate compliance. By adding Postini products to Google's technology, businesses no longer have to choose," said Dave Girouard, VP and general manager of Google Enterprise.

In a conference call, Girouard added without giving figures that there had been "significant interest" from large business about Google Apps but that complex security requirements and meeting regulatory compliance have acted as a barrier. "Up to date we have focused on partnerships to resolve these issue but we recognised it's in our own interest to pull things together" by buying a technology that can boost its hosted apps business.

Both firms said delivering software as a service offered several beenfits to customers such as ease of implementation and taking away maintenance headaches. "off the shelf software doesn't work," said Scott Petry, founder and CTO of Postini.

Google's Girouard added: "Software as a service is a better delivery method. Google didn't invent this, that was down to others, but we intend to capitalise on it." ®

Internet Security Threat Report 2014

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Home Depot ignored staff warnings of security fail laundry list
'Just use cash', former security staffer warns friends
Hackers pop Brazil newspaper to root home routers
Step One: try default passwords. Step Two: Repeat Step One until success
UK.gov lobs another fistful of change at SME infosec nightmares
Senior Lib Dem in 'trying to be relevant' shocker. It's only taxpayers' money, after all
Who.is does the Harlem Shake
Blame it on LOLing XSS terroristas
Snowden, Dotcom, throw bombs into NZ election campaign
Claim of tapped undersea cable refuted by Kiwi PM as Kim claims extradition plot
Freenode IRC users told to change passwords after securo-breach
Miscreants probably got in, you guys know the drill by now
THREE QUARTERS of Android mobes open to web page spy bug
Metasploit module gobbles KitKat SOP slop
BitTorrent's peer-to-peer chat app Bleep goes live as public alpha
A good day for privacy as invisble.im also reveals its approach to untraceable chats
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.