Cisco Buying Fewer False Alarms

Cisco Systems is buying privately held security vendor Psionic Software Inc. in an all-stock deal valued at $12 million. Psionic's software is designed to eliminate most of the false alarms spewed by intrusion detectors. Bogus alerts have long been a problem, especially for resource-constrained IT departments.

"Psionic takes the 'Missouri' approach to information security," says Pete Lindstrom, research director at analyst firm Spire Security. "Their software takes every alert and quickly verifies if an attack has actually taken place or is in progress. It's all about 'show me,' and it helps users prioritize and focus on incidents they need to."

Cisco says it will use Psionic's software to enhance its own security gear. The deal is expected to close by year's end and already has the necessary approval from the boards of both companies.

Psionic's eight employees, based in Austin, Texas, will become part of the Cisco VPN and Security Services business unit.