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July/August 2011

Does information security market consolidation mean the end of the line?

I’ve covered the information security industry for more than a decade and seen plenty of security companies come and go. Remember Entercept? How about Riptech, Neoteris or Teros? All were energetic startups that made a splash before being swallowed up by larger vendors. In fact, if there’s been any constant in the industry over the past 10 years, its consolidation. Symantec’s been one of the biggest buyers, acquiring 23 companies between May 2005 and last August. Its purchases include some big security players, such as Verisign’s security business and PGP, as well as some outside of security like Veritas. McAfee (which has been through several incarnations, including being part of the old Network Associates) has gone on its own shopping sprees, snapping up Foundstone, Reconnex and Secure Computing, among others, before being acquired by Intel last August. McAfee getting bought by chip giant Intel surprised many in the industry, but the deal was part of an ongoing shift in information security market consolidation. In addition to...

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