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Voltage Security acquisition to bolster HP's data protection offerings

HP has agreed to acquire encryption vendor Voltage Security. Gartner says the move will bolster HP's data protection and cloud security products.

Hewlett-Packard Co. has agreed to acquire Voltage Security Inc., an encryption vendor that experts say could fit well with HP's line of enterprise security products.

Cupertino, Calif.-based Voltage Security was founded in 2002 and has since built up a portfolio of security products including data encryption, email, and Web payment security, among others.

The terms of the acquisition were not released. Voltage Security's last round of venture capital funding was in 2007, at which point it received $12 million from Trident Capital.

"HP is long overdue in making acquisitions in security or big data," said Gartner vice president and distinguished analyst Neil MacDonald. "This is one of the largest that HP has executed since it purchased Autonomy in 2011."

HP's Autonomy acquisition has been a widely panned disaster. A year after shelling out more than $11 billion for the UK-based software vendor, it wrote down nearly $9 billion of that cost, citing accounting and disclosure irregularities within Autonomy that allegedly misrepresented the value of the company.

However, HP has successfully acquired a number of security vendors over the years, including Web security vendor SPI Dynamics in 2007, 3Com (and its intrusion prevention unit TippingPoint) in 2009, and both source code-analysis vendor Fortify Software and SIEM maker ArcSight both in 2010.

HP said that Voltage will be integrated into its Atalla Solutions division, which offers cloud security services silimar to Voltage. MacDonald acknowledged the need for HP to improve its cloud security, and also noted the potential for Voltage to improve other HP products.

"It's quite strategic for HP to look at security 'up the stack' as data moves outside the enterprise perimeter and into application security," said MacDonald. "HP has a strong asset with Fortify and now Voltage. There is also synergy with Autonomy, and potential to integrate Voltage with Autonomy to offer complete management and protection of information throughout its life cycle."

HP expects the acquisition of Voltage Security to close in the first half of its fiscal 2015.

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Do you think HP made the right decision in acquiring Voltage Security?
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HP has certainly made a bold decision in acquiring Voltage Security. Considering they are making this move with the aim of making their cloud solutions more secure, it seems like quite a good thing. As well as this, security firms are highly important, as the volume of attacks and hacks is always exponentially increasing. With HP's backing, Voltage Security could potentially do great things, whether for just HP, or otherwise.
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More acquisitions and partnerships are trends that will persist, especially in relation to security and cloud technologies. This was a great strategic move by HP.
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