EMC adds RSA Security to portfolio for US$2.1bn

Storage giant EMC has purchased one of the biggest names in the data security sector — RSA Security. The US$2.1 billion acquisition is the 25th buy EMC has made in the last three years.

  • E-Mail
By  Dylan Bowman Published  July 9, 2006

Storage giant EMC has purchased one of the biggest names in the data security sector — RSA Security. The US$2.1 billion acquisition is the 25th buy EMC has made in the last three years. The deal will provide EMC with a complete set of much needed enterprise security solutions, including identity and access management technologies, encryption and management software to help further expand the storage vendor’s product portfolio. “EMC is where information lives and tomorrow EMC will be the company where information lives securely,” Joe Tucci, EMC chairman, president and CEO, said during a conference call. Tucci said information security had now become a top priority across the world and was an ‘inseparable attribute’ of information management. “The acquisition signals a fundamental change in the landscape of the security market,” he proclaimed, “EMC is 100% committed to applying the resources requi- red to continue to expand RSA’s leading market share, while also tightly integrating their technology with EMC’s products to bring customers the best information-centric security portfolio available,” he said. The deal marks a growing integration of storage and security — last year security vendor Symantec paid US$13.5 billion for storage management firm Veritas Software — and analysts have predicted other storage vendors will follow suit. “EMC’s acquisition of RSA proves that enterprise customers are wary of an intelligent storage infrastructure that shuffles around critical information in cleartext. Now that EMC owns RSA, expect others in the storage crowd to follow suite,” Jon Oltsik, Enterprise Strategy Group senior analyst, told Cnet. Oltsik said the deal “rings in a whole new security era” and said not to be surprised if other large security firms such as Check Point Software Technologies, Internet Security Systems or McAfee got gobbled up by larger companies from other sectors. EMC’s Middle East operation declined to comment last week but RSA’s sole distributor in the region Fusion said it had good links with some of the EMC people in the Middle East and would be keen to keep the RSA relationship going. “There is a strong pipeline of projects for RSA in the region and we have seen business doubling year-on-year with RSA,” said Lee Reynolds, Fusion marketing director. Upon completion of the deal, RSA will operate as EMC’s Information and Security Division and the firm’s CEO and president Art Coviello will become an executive vice president of EMC and the new division’s president. Coviello said security had to be an integral part of the information infrastructure, transparently allowing authorised users to easily get access to information. “The combination of RSA’s leading security technology coupled with EMC’s best-in-class information infrastructure and financial resources will accelerate the integration of security into the information infrastructure,” he commented. EMC has been on a mission to become a total IT infrastructure company and has spent in excess of US$6.5 billion in the process. RSA joins an impressive list of software companies that EMC has acquired in the last few years, including data content management firm Documentum, backup-recovery specialist Dantz and virtualisation outfit VMWare. Tucci promised at the EMC World 2006 event in April that the firm would not be slowing down in its aggressive acquisition strategy and has backed up those worlds with five purchases since then. In addition to RSA, in the last two months EMC has also acquired storage management software companies ProActivity and nLayers, protection vendor Kashya for US$153million and Interlink Group, a private US company that specialises in developing solutions for Microsoft environments.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code