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EMC Buys RSA Security for $2.1B 47

jam244 writes to mention the news of RSA's purchase by EMC. The deal is expected to go through in late third or early fourth quarter of 2006. Once folded into the company, RSA will act as the company's information security division. From the article: "Stice said the proposed price for RSA was 'somewhat expensive,' but added that the deal has the potential to improve EMC's business mix, broaden its product portfolio and further penetrate the consumer security storage market."
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EMC Buys RSA Security for $2.1B

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  • Rivest and Stein (Score:2, Interesting)

    by GrEp ( 89884 )
    So what is Rivest and Stein's piece of the pie?
  • It is nice to see EMC moving a large part of its security stuff in house. I cannot say exactly what this will mean for the end user, but I hope that it will make security more integrated and, of course, more secure.
  • by dilute ( 74234 ) on Friday June 30, 2006 @12:02PM (#15636850)
    Watch for EMC to become a dominant player in the IT market, going way beyond disk drives and data storage. These folks are making some very strategic acquisitions.
    • by mosel-saar-ruwer ( 732341 ) on Friday June 30, 2006 @12:14PM (#15636950)

      Same guys that bought VMWARE

      Novell, with somewhere between 100 million & 200 million installed seats of Novell Directory Services ["eDirectory"], has got to be the world's leading vendor of RSA-based identification, authorization, and encryption products.

      So if Novell ever goes belly-up [slashdot.org], then it seems like EMC might be very interested in the bankruptcy sale.

      Oh, and did I mention that Novell has this software product called "Novell Storage Services"?

    • Watch for EMC to become a dominant player in the IT market, going way beyond disk drives and data storage. These folks are making some very strategic acquisitions.

      I don't know if they'll be a dominant player beyond disk/data as they have not change much since their company inception. They better be doing something. EMC has been selling their 10+ years old product without doing much to enhance it while digital storage in general has gotten so cheap these days. They has been charging their customers a

    • EMC is not about disk drives and data storage, they're about central control of information technology.

      Look at all their market moves and aquisitions with that understanding, and they all make sense.

      They are focused as a laser beam right now.
      • They are focused as a laser beam right now.

        With the notable exception, maybe, of that aforementioned VMware acquisition. So far the policy has been pretty laissez-faire ... no attempt to integrate VMware technology with their storage offerings. What's it all about?

    • EMC getting away from storage would be nuts.

      SAN storage is like the internet 20 years ago, wide open. Storage folks are starting to realize that when you have a lot of computers connected to a single RAID box, you need better protection of the data. Look for encrypted storage protocols to be built in at the hardware level. This will pave the way for running iSCSI over the internet to do remote copy and backup, for example.
  • I was wondering what was going to happen to the dog. Never mind.
  • by gasmonso ( 929871 ) on Friday June 30, 2006 @12:09PM (#15636915) Homepage
    Here's a complete list of mergers and acquisitions: http://www.emc.com/ir/mergers/index.jsp [emc.com]

    Looks like they've been busy :)

    http://religiousfreaks.com/ [religiousfreaks.com]
  • by Anonymous Coward
    Sweet, I had no idea a major crypto company could be had so cheap!
  • I'm guessing some of the product's will get cut off. Going out on a limb here, but I'm guessing Most of the Keon family will get cut off, at least the toolkits [rsasecurity.com] with openssl [openssl.org] and boncycastle [bouncycastle.org] as options for customers.
    The big question is if the CA too will be cut-off... there is lots of viable options here too Ejbca [ejbca.org] for example <shameless plug>There is commercial support available</shameless plug>.
  • all going to crap (Score:1, Interesting)

    by Schmots ( 859630 )
    We have a 60TB EMC SAN with the NAS frontend application as well. It has been nothing but headaches and problems since we got it and we regreat the purchase every single day. We also use RSA, most notably for our vpn token links. I would hate to see something reliable and workable like RSA solutions go to crap because of EMC
    • FWIW, I don't have any experience using EMC's products but a company I used to work for made backplanes for them and believe me, they had the most stringent quality requirements of any customer, so it's probably not hardware problems that are giving you headaches.
    • What kind of problems are you having with the Celerra? Is it sitting in front of a Clariion or a Sym? I honestly have nothing but good things to say about the EMC storage (Petabyte Scale) and SAN products I've worked with in the past. The support I've seen is unmatched by any other vendors I've worked with (*cough* especially other 2 or 3 letter acronym companies).
      • If you mean HDS, I'd have to say HDS products singlehandedly blow them away. The fact that you need that much EMC support behind an array that you paid $1 million for, is mind boggling. Is a sick business model but EMC now have something like a ratio of 4 salesguy to 1 engineer at most major datacenters. Good service? They just want you looking the other way.
  • by Akardam ( 186995 ) on Friday June 30, 2006 @01:15PM (#15637454)
    "Captain, I'm detecting enormous levels of marketspeak and a high buzzword quotient from this article summary. It is highly illogical."
  • by Anonymous Coward on Friday June 30, 2006 @01:52PM (#15637745)
    Interesting.. Could the day be far off when EMC offers a SAN solution that does front-to-back encryption? Encrypted on the platter, stays encrypted through your SAN, and gets decrypted at the multipath layer?

    That way, they could argue that they not only keep your storage secure physically, but logically as well. For shops that have geographically-spanned SANs, this could be a helluva selling point.
  • Trying hard..... (Score:1, Insightful)

    by Anonymous Coward
    EMC is trying really really hard to be a software company as hardware margins are constantly under pressure. In last couple of years, they have coughed up billions to buy companies like Documentum, VMWare, etc. which, seriously, were of questionable value to the company. To me, the company's acquistions look clueless.
    • -chuckle-

      Well, we have a Documentum installation at work, and since it doesn't do file-deltas on versions and since most users don't understand the differences between "checkout" and "export" and "checkin" and "import", we frequently get 200MB flash files that have over 100 versions on them with no differences at all. That uses up a lot of disk space really, really fast.

      Guess who we buy our disks from?
  • who read that as two dollars and eighteen cents?
    • I was going to say, "Have you been watching Tank Girl?", but it's two dollars and fifteen cents in that.

      T-Saint: How much did they pay you to spy on us?
      Tank Girl: Two dollars and fifteen cents!
  • Everthing has to be broadened and penetrated in marketing speak? ;)

    OT, I know... I know....

  • by xeno ( 2667 ) on Friday June 30, 2006 @05:51PM (#15639805)
    My old security consultancy was assimilated by Symantec. Our technological and biological distinctiveness was added to their own. Our individuality was irrelevant. We didn't even get to keep a sub-brand ("@stake, a Symantec Company") like Norton did. Now we're lost in the homogeneous blob. Of course, that was a now-obvious screw-up, because the sales people still say things like "our professional services staff is based on the expertise of @stake..." It's great for little yellow boxes of product, but two years on, the Symantec name still doesn't stand on its own with respect to security consulting. Not when commissions depend on it.

    The people at McAfee/NA were a bit brighter about it, and the value of the Foundstone name and reputation wasn't squandered as badly as it could have been when they got bought out. Sure Foundstone shed people just as @stake did, but there's a world of difference. They decided to follow perceived distinctiveness as a tool for selling consulting, and perceived ubiquity as a tool to sell products; the names differentiate them.

    Good luck to RSA. I'm sure they'll keep the name, expand their consulting services and probably give us a hell of a run for our money. (What with EMC already competing with Veritas/Symantec...) It's gonna be an interesting time.


    *Best line this week: "If you're happy and you know it, stick with your current dosage."
  • Hehe... I just got hired at EMC, I turned down an offer from RSA to work at EMC instead. Looks like I made the right choice. I should have bought some RSA stock though, its gone up like 10 bucks over the past 48 hours.
  • In other news, ABC buys XYZ for $1.23B.

    (1, never heard of these companies, 2, who cares?)
  • by pagej97 ( 908732 )
    Why does Ellingson Mineral Corporation [angelfire.com] need RSA? Are they afraid of their Gibson being hacked, or something?

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