Customers want to have a smaller set of vendors accountable if their technology fails to keep information secure and in compliance with regulations–and large systems and storage companies have the financial clout to act as consolidators. “They have the ability to do the potential M&A (mergers and acquisition) deals in cash, or are large enough to do them with stock, or a combination of both,” MacLeod said.
Prior to their acquisition announcements, ISS and RSA Security, for example, had long been rumored to be potential buyout candidates. Other names analysts point to on a short list of potential targets include Trend Micro, Check Point Software Technologies, McAfee and Secure Computing.
“On one side, you have companies like Cisco (Systems) and Microsoft that will discount the price they charge for security, and on the other side, you have the best-of-breed (niche security) companies,” Kuper said.
Buyers don’t want the consumer side, so maybe it could take the consumer piece private and sell the enterprise business,” said one security analyst, who requested anonymity.
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