It's always interesting to see the response to a game-changing acquisition, namely EMC buying RSA Security. The deal changes the security landscape, so I need to come up with a new name for EMC. How about EMCecurity (pronounced E-M-See-curity)? I'm heartened by the backlash this deal has received from those in the know, but they are wrong.
Many are still scarred by the difficulty that Symantec is having with Veritas, so therefore no security or storage deal can work. Symantec sells to the security manager. Veritas sells to the data centre manager.
EMCecurity will also sell to the data centre manager, who is about to get more security than ever imagined. As information/data security becomes more important, EMC will be well positioned to sell encryption and identity management to those customers.
RSA is about more than SecurID - One of the common refrains is that RSA only sells tokens. Though SecurID is a strong and powerful brand, it was getting long in the tooth. It has always had a strong (though not exciting) encryption business. And its identity management products (more on the single sign-on and federation side than Web access management) are also well regarded.
Identity is the link between the infrastructure (tokens) and the information/data (encryption). This is what makes the EMCecurity combination pretty compelling.
The big issue, especially on Wall Street, is the price, which was big. Good for RSA's shareholders. If I'm wrong, however, and the synergies don't materialize, if EMC had only paid $10, then it would have overpaid. And if synergies do materialize, the $US2.1 billion will be a drop in the bucket compared with the leverage EMC will achieve by controlling, storing and protecting information.
It's too bad it will take years for this scene to play out, so I won't be able to gloat for a while. But that's OK, I have a long memory. When I'm right, that is. . . .