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4/8/2008
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Hitachi Acquires ID Management Software Maker M-Tech

M-Tech -- now Hitachi ID Systems -- offers P-Synch software for managing user passwords and ID-Synch technology for user provisioning.

Hitachi on Tuesday said it has acquired M-Tech Information Technology, the latest in a string of deals by big vendors for identity management and access control companies.

As of April 2, M-Tech's name has been changed to Hitachi ID Systems, and its technology added to the parent company's information security software portfolio. Hitachi plans to leverage its brand and market channels, as well as other companies within the Hitachi Group, to expand M-Tech business globally.

Gideon Shoham, chief executive of M-Tech, has been named CEO of Hitachi ID Systems. "The combination of M-Tech's leading identity management software and Hitachi's global reach and authentication technology are sure to benefit our customers," Shoham said in a statement. "We look forward to delivering the most advanced identity management software and services to the global marketplace, as part of the Hitachi Group."

M-Tech technologies are likely to be combined with Hitachi's biometric, RFID, smart card, and other security-related technologies. "Hitachi believes that M-Tech's identity management technology will be an integral component of Hitachi's information security solution offering," said Masato Saito, executive general manager of Hitachi's Information and Telecommunications Systems Group.

M-Tech's P-Synch software manages user passwords, and its ID-Synch technology is for user provisioning. The products have been deployed by about 700 organizations worldwide.

Stricter regulations on internal controls and more effective privacy protection within companies and government agencies are expected to drive demand for IT security. Hitachi said a recent Forrester Research report predicts the identity and access management market would grow to $12.3 billion in 2014 from $2.6 billion in 2006.

Last month, IBM joined the buying binge in ID management with the purchase of startup Encentuate, which is expected to add to IBM's single-sign-on and authentication products. In the same month, Microsoft bought Credentica's U-Prove and Ping Identity acquired Sxip Access. Last year, Sun Microsystems bought Vaau, Cisco Systems purchased Securent, and Oracle acquired Bharosa.

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