Dell Services Closes a Capabilities Gap with Planned SecureWorks Acquisition

| Jan 10, 2011 | Security Services
| Analyst: Amy Larsen DeCarlo

Event Summary

January 4, 2011 - Dell announced it has signed a definitive agreement to acquire SecureWorks Inc., a provider of information-security services. SecureWorks’ Security-as-a-Service solutions include managed-security services, security and risk consulting services and threat intelligence. SecureWorks processes more than 13 billion security events and sees more than 30,000 malware specimens each day. The company has 2900 clients with more than 1,500 banks and credit unions as managed security services clients.

Quick Take

Analytical Summary

• Current Perspective: Positive on Dell’s planned purchase of pure-play managed security services provider (MSSP) SecureWorks, because the company gains a mature and well-regarded set of managed services that cover all the major elements of the discipline, as well as a client base of 2500 blue chip customers.

• Vendor Importance: High to Dell Services and SecureWorks because the deal supplies the former with security services and related expertise it badly needs if it wants to compete against top-tier IT solution providers for strategic SME and enterprise accounts while providing the latter with access to capital and new distribution channels that it previously lacked in order to continue to innovate and grow.

• Market Impact: Moderate on the managed security services segment and the managed IT services market as a whole because the deal further consolidates enterprise security capabilities in the sector to just a handful of players and strengthens Dell Services managed services, which should make the company more competitive across the board.

CLIENTS ONLY

Competitive Strengths and Weaknesses

Response & Recommendations

Buyer Actions

Analytical Perspective

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