EMC to release cash hoard on security market: report

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EMC to release cash hoard on security market: report

EMC is reportedly looking to use its cash hoard to acquire security companies in a move to beef up that part of its business.

EMC is considering investing some of its $US5.6 billion in cash to increase its security technology portfolio, reported Bloomberg.

Best known as the leading storage vendor, EMC is already a major player in the security industry thanks to its May 2006 acquisition of RSA, a provider of security, risk and compliance management solutions.

EMC later that year also acquired Network Intelligence, which built tools to capture data from the network, security, host, application and storage layers of an enterprise for compliance, security forensics and auditing purposes.

Security is also a growing business for EMC. In July, company reported during its second fiscal quarter of 2012, its RSA Security division saw revenue growth of 13 percent over last year to $US221 million.

David Goulden, EMC's newly-appointed president, COO and CFO, said at the time that security is a top customer concern and that EMC has been working to integrate security with other EMC and VMware products.

EMC declined to comment today.

One potential acquisition target for EMC in the security market is reportedly Fortinet, a developer of security appliances for firewall, VPN, antivirus, intrusion prevention, application control, web filtering, antispam, wireless controller and WAN acceleration.

Another candidate is Palo Alto Networks, a developer of firewall appliances that include hardware with dedicated processing resources for security, networking, content scanning and management.

A third possibility, Bloomberg wrote, is Check Point Software Technologies, which develops security appliances with software security modules for a variety of threats.

EMC is no stranger to acquisitions. In addition to RSA, it has acquired virtualisation kingpin VMware, enterprise content management developer Documentum and XtremIO, a startup developer of all-flash storage arrays.

Joe Tucci, EMC chairman and CEO, in May told CRN that EMC spends an average of $US2 billion a year on acquiring technology companies,

This article originally appeared at crn.com

Copyright © 2017 The Channel Company, LLC. All rights reserved.

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