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September 2007

Consolidation's impact on best-of-breed security

Security managers are asking pure-play vendors questions about their viability. It was difficult to tell whether Art Coviello's tan was from the sun or whether he was just flush with cash. It was the dead of February in San Francisco and there was the leader of RSA Security telling attendees at his company's namesake conference that the standalone security market would be extinct by the end of the decade. "The value of security as a standalone solution is diminishing," he said from the keynote pulpit. Almost immediately from more than one corner of the vast auditorium hall you could hear snickering: "Easy for you to say, Art, since you've just been acquired." EMC's $2.1 billion acquisition of RSA in June 2006 epitomizes the type of consolidation in the security market that continues today. Security companies are attractive acquisition targets for large infrastructure players like EMC, which plans to integrate RSA's authentication and encryption capabilities horizontally across its storage and data management portfolio. It's not ...

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