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August 2006

Editor's Desk: Consolidation is in

EMC's acquisition of RSA Security shows that consolidation in the security market isn't slowing down and data protection will become front and center for enterprise users. Still wondering why EMC in late June offered $2.1 billion for RSA Security-- five times the expected annual revenues for a company whose sales were flat in 2005? EMC is willing to pay top dollar for data protection capabilities. EMC gets encryption capability for backup and storage at a time when the theft of laptops and other physical assets is on a steady climb. Lost backup tapes alone compromised personal information of close to 7 million people since the ChoicePoint fiasco in February 2005, according to the Privacy Rights Clearinghouse. And EMC is not the first to see the synergies of security and storage management. Symantec acquired Veritas, and large infrastructure vendors such as IBM and CA have also broadened their portfolios. But EMC also gets RSA's identity and access management, and authentication businesses--particularly hot areas, given looming ...

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