Security Companies Getting Bought Out...

http://creativemac.digitalmedianet.com/articles/viewarticle.jsp?id=153590

I think the recent buying binge demands at least some investigation into:
a. Exactly what these companies market
b. What does the software actually do
c. Is it ready to deal with, or can it be extended to deal with, latest threats
d. How easy is it to integrate with current solutions
e. Are these FIPS-compliant

In any case, it does look like the Security market is golden, and doing fantastically well. If you want to make a few million dollars, start with an idea, write up rudimentary software, say it patches up this threat and that vulnerability while scanning the network and making your morning coffee, and BOOM! your company's set for sale!

Seriously though, the real value of these acquisitions will come from how easily and painlessly the products integrate into current product offerings. HP just bought SPID, and if that could be merged into any of HP's products (logically so) then customers have one less thing to deploy, manage, patch, and keep inventory.

Overall, definitely a solid consolidation in the SS market is going on, and is long overdue, too, but quite importantly we should note WHO'S buying - that will indicate a stronger trend toward tighter bonding between existing enterprise management/monitoring tools and actual Security tools.

Now you could predict that IBM will have a significant share of Security-based revenues from its purchase of ISS, that EMC will carve out a bigger and bigger share of the market using RSA, that BT will reap the fruits of its bagging of CounterPane.

This is just the beginning of the trend - quite possibly we'll see the same and new software vendors buying more and more of such companies. Ultimately, one'd be hard-pressed to find a single Security ISV.

Hot areas will include:
a. Identity management
b. Patch management
c. Vulnerability assessment and management
d. Threat assessment (from internal and external sources based on patterns and trends)
e. Code and system-hardening
f. Security services and consulting operations
g. Compliance and regulatory assessment, management, consulting and validation
h. Outsourcing of Security tasks
and so on

Be safe!