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Posted by Khalid Kark on January 6, 2011
Dell announced Tuesday its intent to acquire managed security services provider (MSSP) SecureWorks for an undisclosed amount. SecureWorks, which acquired VeriSign's Managed Security Services in July 2009, has been growing their business significantly over recent years. Dell on the other hand, has been strengthening its services arm and moving towards a more solutions-centric approach. SecureWorks will continue to act as a separate business unit and will maintain its offerings, keeping its consulting and services intact. This deal was surprising but not shocking. As information security becomes an integral part of the infrastructure, large system vendors strive to build or buy security capabilities into their products and services. Here are our initial thoughts on the acquisition:
While we believe that overall this is a good acquisition, it remains to be seen how well Dell will execute on integrating SecureWorks’ capabilities while maintaining a standalone MSSP offering. Here are few pieces of advice for Dell:
In summary, this is a good acquisition for Dell clients because it offers them the ability to get security services from a trusted partner. It’s also a great opportunity for existing SecureWorks clients, providing them with the financial assurance and resources of a large fortune 50 player instead of a standalone MSS provider. What remains to be seen is how well Dell can integrate the competencies of SecureWorks and how it will serve some of the sophisticated MSSP customers that SecureWorks previously acquired from Verisign.
Now that we’ve shared our initial take on this acquisition, we’re interested to hear your thoughts.
Khalid Kark and Usman Sindhu
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