EMC acquires extra Intelligence

Network Intelligence is added, RSA Security deal completed

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By  Published  September 29, 2006

EMC’s capture of US security firm Network Intelligence is a further sign of consolidation in the IT industry, according to research house Gartner Group.

The storage giant announced its US$175million purchase of Network Intelligence earlier this month (see IT Weekly 23-29 September 2006).

Network Intelligence’s products deliver alerts for possible security breaches, as well as analysing network performance.

“Information security continues to dominate the spending intentions of chief information officers around the world. The battlefront in security has quickly shifted from securing the network perimeter to protecting and securing the information itself – wherever that information lives and where it moves,” said Joe Tucci, EMC’s chairman, president and CEO, in the statement announcing the deal.

EMC also this month declared that it has completed its US$2.1 billion acquisition of RSA Security.

Gartner said that it saw clear synergies between the products of all three firms. “There are multiple areas of synergy between EMC and Network Intelligence, but the scope of the Network Intelligence solution currently extends the scope of the expertise within EMC and RSA,” Gartner said in an online advisory.

EMC’s “information-centric strategy” would lead it to integrating Network Intelligence’s products with its data storage products and RSA’s security software, the advisory continued.

According to Gartner, Network Intelligence is operating in the security information and event management (SEIM) sector; a sector that the research firm believes will inevitably see further consolidation, with point solution vendors being acquired by larger firms. While in Network Intelligence’s case, this acquisition removed the “viability risk” of dealing with a smaller firm, such consolidation “will place pressure on the point solution vendors that remain.”

For its part, EMC is keen to reinvent itself as a key player in the software market, rather than its legacy role as a storage firm. “We still have some work to do because our brand is so strongly associated with our legacy and history of storage,” EMC’s senior vice president of its software group, Mark Sorenson, told Cnet this month.

“We hope to transform into an information-management company.”

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