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HP Bids for Security Leadership with Acquisition of ArcSight
Enterprise Management Associates, Oct 2010, Pages: 4
On September 13, 2010, Hewlett-Packard (HP) announced its intention to acquire ArcSight, a leading vendor of technology for managing security and risk information, for approximately $1.5 billion. The deal is the second, and by far the largest, risk-related acquisition—and the second largest in any market after 3PAR—made by HP in the weeks since the departure of former CEO Mark Hurd. This could signal a turning point, not only for HP’s overall expansion in the enterprise market but also for its formerly restrained strategy for managing business risk in and by IT. At a minimum, it indicates that HP is willing at last to mount a more serious challenge to major competitors such as IBM and EMC on the security front.
ArcSight represents far more to HP, however. The company sees its technology as a focus for managing a wide range of information directly related to managing business risk in IT: in applications as well as in IT infrastructure. This correlates directly to HP’s strategy for Business Technology Optimization (BTO), the area within HP where ArcSight will primarily be aligned. ArcSight will also form a bridge between HP’s expansive services strategy since its acquisition of EDS, and its product strategy for the enterprise. Indeed, ArcSight may represent an even greater opportunity for HP services, given the requirements for deployment, integration, and ongoing maintenance of risk information management and support that will open new doors for HP in key markets such as government and financial services. Whether it represents an even larger trend in the absorption of the security market by major vendors in the wake of the Intel-McAfee deal remains to be seen.
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