IBM buys ISS

Big Blue enters definitive agreement to acquire software and appliance vendor

Consolidation in the security sector continued apace with IBM snapping up Internet Security Systems (ISS) for $1.3bn.

The acquisition is subject to ISS shareholder and regulatory approvals and other customary closing conditions, but is expected to close in the fourth quarter of 2006. ISS will join IBM as a business unit within IBM Global Services’ Security organisation.

Big Blue revealed it intends to integrate ISS' software technology with Tivoli's IT service management portfolio which includes software for identity management, access management, service oriented architecture security, and security information management. IBM also said the products will be sold using both vendor's channel partners.

According to IBM the acquisition marks its continuing commitment to the managed security services market and will combine ISS' automated security platform, services, software and consultants with IBM's security portfolio.

Val Rahmani, general manager, infrastructure management services, IBM Global Services said:"Companies recognise that rapidly evolving security threats and complex regulatory requirements have turned security into a mission-critical priority. ISS is a strategic and valuable addition to IBM’s portfolio of technology and services. This acquisition will help IBM to provide companies with access to trained experts and leading-edge processes and technology to evaluate and protect against threats and enforce security policies.”

Tom Noonan, chief executive of ISS said: "Clients increasingly recognise that security must become a network-integrated business process rather than a reactive response to individual threats. By delivering an integrated security platform that is adaptable and extensible to address new threats and business requirements without incremental complexity and cost, ISS has delivered the foundation for delivering security as a service. These on-demand capabilities, together with our managed security services, appliances and software will further bolster IBM’s leading security services and products as we take this innovation out to a larger, global stage.”