EMC stuns channel by acquiring RSA Security
Second major union between storage and security vendors leaves many asking questions
Channel players were left reeling last week after storage giant EMC announced its acquisition of security giant RSA Security.
Under the agreement, EMC will pay about $2.1bn for RSA, and the security firm will operate as EMC’s Information Security Division. The deal is expected to close by the third or fourth quarter, depending on regulatory and shareholder approval.
Joe Tucci, president of EMC, said in a statement: “This acquisition signals a fundamental change in the landscape of the security market. EMC is 100 per cent committed to applying the resources required to continue to expand RSA’s leading market share, while also tightly integrating its technology with EMC’s products.”
Nigel Ghent, marketing director for UK and Ireland at EMC, told CRN the acquisition would make things easier for both RSA and EMC channel partners.
“Security is an intrinsic part of storage and this acquisition pulls all the elements together for channel partners,” he said. “We will retain and build on RSA’s channel because it makes no sense to dissolve it.”
This is the second major union between a storage and security company, following the Symantec and Veritas merger in 2004 (CRN, 20 December 2004).
Alex Tatham, director of commercial products at Bell Microproducts, a distribution partner for both RSA and EMC, said: “I wouldn’t have put the two firms together, but EMC is an acquisitive company and you couldn’t put it past it not to buy anyone.
“RSA’s main product is SecurID and it is difficult to see how this is applicable to EMC’s software or hardware.”
Mark Evans, commercial director of RSA VAR IMERJA, said: “This has got to be good for business. The integration of security and storage offers better business continuity and strengthens customer confidence.”
Jeanne Razzell, managing director of EMC VAR Systems Support, said: “It could take up to two years before the channel starts selling the combined products, but I’m sure EMC will be smart enough to keep the RSA branding.”