IoT
Cloud // Software as a Service
News
10/27/2009
01:12 PM
Connect Directly
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%
RELATED EVENTS
A Look at Tomorrow's Data Scientist
Aug 09, 2016
Join All Analytics Radio on Tuesday, August 9, at 11 am EDT, to discuss how universities, employer ...Read More>>

Cisco To Acquire ScanSafe

The market for tech companies is heating up again, as Cisco strengthens its position in Web and mobile security.

In a deal that underscores the shift toward cloud computing, Cisco on Tuesday said that it had reached an agreement to acquire ScanSafe, a privately-held provider of software-as-a-service (SaaS) Web security for businesses.

Cisco said the acquisition will cost $183 million in cash and retention-based incentives.

Tom Gillis, VP and general manager of Cisco's security technology business unit, who arrived at Cisco via its 2007 acquisition of IronPort, described the purchase as part of Cisco's effort "to build a borderless network security architecture that combines network and cloud-based services for advanced security enforcement."

The Web security market, which Cisco expects to grow to $2.3 billion by 2012, appears to be in the midst of consolidation. Earlier this month, Barracuda Networks, a maker of security hardware, acquired SaaS Web security provider Purewire for an undisclosed sum.

In an e-mail, Jay Chaudhry, CEO of Zscaler, another SaaS Web security company, characterized the acquisition as validation of the SaaS model for Web security.

Cisco said it intends to combine its IronPort Web security appliance with ScanSafe's Web security service to offer on-premises, hosted, and hybrid-hosted Web security.

The company also expects to integrate ScanSafe's service with Cisco's AnyConnect VPN Client to enhance security for mobile workers.

The acquisition is Cisco's sixth this year and its first security-related purchase since 2007. That year, in addition to IronPort, Cisco purchased two other security-related companies: BroadWare Technologies and Securent.

Cisco's last security buying binge occurred in 2004 and 2005, when it acquired seven security-related companies.

Cisco said that it expects the deal to close in the second quarter of Cisco's fiscal year 2010, which ends in January.

InformationWeek and Dr. Dobb's have published an in-depth report on how Web application development is moving to online platforms. Download the report here (registration required).

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
8 Steps to Modern Service Management
8 Steps to Modern Service Management
ITSM as we know it is dead. SaaS helped kill it, and CIOs should be thankful. Hereís what comes next.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of July 17, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.