IBM to Acquire Internet Security Systems
On August 23rd IBM and Internet Security Systems (ISS) announced that the two companies have entered into a definitive agreement for IBM to acquire ISS, a publicly held company based in Atlanta, Ga., in an all-cash transaction at a price of approximately $1.3 billion, or $28 per share.
Recommended Competitive Responses
► Competitors should be concerned about this announcement – although not so much with a combined IBM/ISS, but with what the combining of IBM and ISS says about the state of the market. This announcement is not about IBM so much as it is about Microsoft and Cisco. In the long term, “mid-sized” companies such as ISS and RSA no longer believe they can compete with the size, reach and R&D muscle of these new market entrants.
► Competitors can attempt to create FUD based on the strong emphasis that the companies are giving on the managed services aspect of the deal. Competitors could suggest that IBM will neglect ISS software sales and channels and focus all of its energies on services.
► Competitors should not be too concerned with aggressive product integration activity from IBM. Its initial plans are quite modest.
► Vendors such as Symantec that have long been pushing a more prominent place for security within the larger IT management hierarchy should position this announcement as another important endorsement for their market strategy.
Recommended End User/Customer Responses
► Existing ISS customers should be very pleased with this announcement. IBM provides the deep pockets that can ensure ISS’ continued position as a leading innovator in the information security market.
► IBM Global Technology Services customers should also be very pleased with this announcement. IBM will now be able to offer a suite of new threat protection and vulnerability management services through its services group.
► Prospects should not expect deep product integration between the companies any time soon. This is not a one plus one equals three kind of combination from a product or service perspective. Prospects considering ISS software should continue working through ISS sales channels.
NCR/Teradata Launches MDM Product Family
On August 3rd the Teradata division of NCR Corporation announced the introduction of a new master data management (MDM) software product family that helps customers ensure the consistency, completeness, and accuracy of master reference data maintained in Teradata-based data warehouses.
Recommended Competitive Responses
► Rival MDM vendors, including i2, IBM, Oracle, SAP, TIBCO, Business Objects, Hyperion, and Cognos, should hail NCR/Teradata’s move as a positive for the MDM space, in as much as it validates that DW deployments are incomplete without strong MDM feature.
► Rival DW/DBMS software vendors, such as IBM and Oracle, should position NCR/Teradata’s MDM solutions as being optimized for that vendor’s DBMS, which is essentially a second-tier offering in the enterprise database market.
► EII vendors, such as Ipedo, MetaMatrix, and Composite Software, should point out that NCR/Teradata only addresses single-master MDM environments that revolve around consolidated DWs, and it does not support multi-master federated query and other EII functions necessary for “virtual MDM.”
► DW appliance vendors should call attention to the likely multimillion-dollar price tag of the typical Teradata-based MDM/DW deployment, and note that less expensive MDM/DW solutions can be assembled from low-end DW appliances and various combinations of open-source and commercial software.
Recommended End User/Customer Responses
► Enterprises with MDM requirements should evaluate NCR/Teradata’s new products against MDM software offerings from other vendors. Evaluation criteria should include price-performance, functionality, deployment flexibility, and integration with their complex, heterogeneous, multi-vendor data management and application infrastructures.
► Current users of competing MDM software should evaluate whether NCR/Teradata’s new offerings better meet their needs than their current provider, and hence whether they should consider migrating to Teradata’s MDM software in whole (for all enterprise MDM needs) or in part (for CDI, PIM, and/or other MDM subject domains).
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