Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Get Recognized.
Let an ISACA® certification
enhance your career.

Register for an Exam Today
Data Security
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
HP Will Buy ArcSight To Move Beyond Perimeter Security
HP Will Buy ArcSight To Move Beyond Perimeter Security

By Jennifer LeClaire
September 13, 2010 1:55PM

    Bookmark and Share
Hewlett-Packard plans to increase its security focus by purchasing security and compliance firm ArcSight for $1.5 billion. HP sees a need for better tools as enterprises give employees, partners and customers more access to data. ArcSight CEO Tom Reilly sees the deal as creating an integrated security platform for HP to address security risks.
 



On the heels of Intel's acquisition of McAfee, Hewlett-Packard has announced plans to acquire another security industry player. HP will pay $1.5 billion, or $43.50 per share, in an all-cash deal for security and compliance firm ArcSight.

This is HP's second security-related acquisition in as many months. In August, HP acquired security assurance company Fortify Software. HP is betting its latest in a string of acquisitions will beef up security, lower the risk, and streamline compliance at a lower cost for its customers. That's a tall promise, but one that HP may be getting closer to with the ArcSight buy.

"From a security perspective, the perimeter of today's enterprise is porous, putting enormous pressure on clients' risk and compliance systems," said Bill Veghte, executive vice president of HP's Software and Solutions business. "The combination of HP and ArcSight will provide clients with the ability to fortify their applications, proactively monitor events, and respond to threats."

Beyond Perimeter Security

As HP sees it, enterprises are facing a challenge that its combined security portfolio can solve: Companies need to give employees, partners and customers more access to applications, services and information amid escalating threats and ever-growing complexity and regulatory challenges.

HP said adding ArcSight to its portfolio gives clients a 360-degree view of IT operations, broader security and compliance tools, the ability to detect threats and risks by correlating both activity and state changes in real time, and a feedback loop between build, manage and monitor to ensure that enterprises remain secure.

Tom Reilly, president and CEO of ArcSight, went so far as to say the acquisition will create a new type of security solution for the modern enterprise. The result of the merger, in his view, is an integrated security platform that goes beyond identifying risks to remediating them. "In a world where perimeter security is no longer enough," he said, "businesses need this holistic approach to securing their networks, applications and sensitive data."

Seeking Differentiation

Charles King, principal analyst at Pund-IT, said HP's latest acquisition indicates the growing importance that most vendors are putting on security, and specifically delivering integrated security. Unlike IBM and Oracle, HP does not have proprietary security platforms that were developed in-house, and appears to be hedging against that disadvantage with its recent security acquisitions.

"As we move forward toward a future where IT hardware is more and more commodity-based -- and I think the industry is headed there over the long term -- the question becomes this: If everybody is building their servers out of the same basic components, how do you differentiate the value add and the competitive advantage that your products offer?" King asked.

"I think we are seeing a rush toward proprietary security features that can be tailored toward HP customers with this deal," he said. "I suspect we will see more security acquisitions by other firms and, over time, other sorts of enhancements that will either be developed in-house or purchased in future acquisition-buying sprees."
 

Tell Us What You Think
Comment:

Name:

Al Hilwa, IDC:

Posted: 2010-09-13 @ 5:03pm PT
The fact that these acquisitions are happening after Mark Hurd left might suggest that he had not been in favor of such expansive acquisitions, but more likely it is a just a matter of timing as such acquisitions take time to brew, and so likely the discussions started prior to his departure.

We are in a very acquisitive and highly consolidative era right now in the industry, for various reasons. Aside from technical reasons such as valuations and opportunity costs, as the number of big technology firms consolidate, the battle for what is left heats up and they begin to see each other as competitors even though they are not directly playing in each other’s business.

It is all about envisioning what the market will look like in a few years, which has become harder, because of the multiple disruptive forces at play, such as the explosion of cloud and mobility.

One scenario I see is that Oracle is likely to embark on an a second wave of large acquisitions under Mark’s leadership, potentially oriented at taking it to completely different places, perhaps even following a more diversified portfolio similar to IBM and HP.

We will probably get more insight on that from the body language or indeed what Larry Ellison might say at Oracle Open World.

Al Hilwa
Program Director
Applications Development Software
IDC – Seattle



Neustar, Inc. (NYSE: NSR) is a trusted, neutral provider of real-time information and analysis to the Internet, telecommunications, information services, financial services, retail, media and advertising sectors. Neustar applies its advanced, secure technologies in location, identification, and evaluation to help its customers promote and protect their businesses. More information is available at www.neustar.biz.


 Data Security
1.   Chinese Hackers Hit U.S. Officials
2.   Data Recovered from 'Wiped' Phones
3.   Cybercrime Ring Uncovered in Brazil
4.   Four Threats Risk Internet's Freedom
5.   Gartner Rates IT Security Companies


advertisement
Gartner Rates IT Security Companies
IBM, HP, McAfee, Splunk ranked well.
Average Rating:
Hackers Target Western Energy Firms
Appears to be state-sponsored group.
Average Rating:
IBM Uncovers Android Security Flaw
Ten percent of devices at risk.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Report: Chinese Hackers Hit U.S. Personnel Networks
Hackers from China broke into the computer networks of the U.S. Office of Personnel Management earlier this year with the intention of accessing the files of tens of thousands of federal employees.
 
Charges: Russian Stole Data from U.S. Restaurants, Zoo
A Russian man arrested on bank fraud and other charges hacked into computers at restaurants in Washington, hundreds of other retail businesses, and even the Phoenix Zoo, authorities say.
 
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 

Enterprise Hardware Spotlight
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 
Gartner Sales Study Sees Tablets Up, PCs Down but Recovering
Are PCs on the comeback trail? That depends on how you define "comeback." While tablet sales remain strong, Gartner's latest study found PC shipments aren't dropping as fast as they did last year.
 
Review: Warming Up to Tablets with Keyboard Covers
If you've ever thought tablets with keyboard covers were just a poor excuse for a laptop, think again. Nokia's Lumia 2520 comes with an optional keyboard cover that just may change your mind.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.