The number of pure-play vendors in user account provisioning decreased on April 7, 2008 when Hitachi announced that it acquired M-Tech Information Technology, and changed the name to Hitachi ID. Although Hitachi has been lacking an identity and access management (IAM) pedigree, this move can prove important due to the following reasons: 1) Using IAM for provisioning of physical resources and hardware resources. 2) Extending enterprise role definitions to previously uncharted verticals and cultures. 3) Evangelizing user account provisioning and IAM in Japan and other APAC regions. 4) Hitachi becoming a major player in Japanese SOX (JSOX) implementation.
Needless to say, the above will hinge on Hitachi's ability to retain and grow the existing customer base of M-Tech IT in North America and Europe, and also on Hitachi's ability to compete against EMC's selling of Courion and RSA products. How Hitachi will create an access and adaptive access management (Web and desktop) portfolio to complement its identity management and provisioning portfolio also remains to be seen.
Overarching causes described in the report are not surprising; control failures, an overly aggressive focus on short-term growth, and excessive risk taking are among the high level issues addressed. Also in the report, however, are scores of more detailed explanations of control failures in more than 20 different categories. Specific problems on the list include:
On April 18th, IBM announced its intent to acquire virtual tape library (VTL) and deduplication vendor Diligent Technologies. For IBM, Diligent is a good fit. The company offers both mainframe and open systems virtual tape libraries and they are a pioneer of deduplication. However, IBM already offers a market leading mainframe VTL based on its own intellectual property and an open systems VTL based on FalconStor technology — although the open systems VTL has very limited adoption — so there is also a lot of overlap. Because Diligent is a software solution, IBM can quickly integrate Diligent with any of its storage systems and bring new VTLs to market relatively quickly. It’s very likely that IBM will in fact pursue this route so it can bring an inline deduplicating VTL to market as quickly as possible.
On April 10, 2008, IBM announced its intent to acquire FilesX, a small startup that offers server-based replication and continuous data protection technology. The acquisition will become part of the Tivoli Storage Manager (TSM) family of products.
This acquisition will help IBM Tivoli fill a gap in their current portfolio of offerings for data protection. The vendor currently offers Tivoli Storage Manager (TSM), which is one of the leading enterprise-class backup software applications, and Tivoli Continuous Data Protection for Files, a product mostly used to protect PCs. In addition to traditional backup to tape or disk, TSM can also manage Microsoft Virtual Snapshots (VSS) and its own IBM storage-based snapshot technology in support of instant restore or snapshot assisted backup. But the company didn’t really have an offering for customers who wanted something that was better than backup but not as expensive as storage-based replication, this is where FilesX comes in. With FilesX, IBM can now address the recovery requirements of small enterprises that can’t afford storage-based replication. They can also meet the recovery requirements of large enterprises that want to protect more servers within their company with a more affordable replication offering as well as servers at the remote office.
IBM acquired Encentuate for an undisclosed sum. This underscores the validity of Forrester's prediction that the enterprise single sign-on (E-SSO) market in identity and access management (IAM) will grow from E-SSO's $250 million in 2006 to $2 billion in 2014 - a CAGR of 28.5%. What are the likely implications of this acquisition in the E-SSO marketplace?
1. After CA and Novell, now IBM will have a fully integrated IAM suite in which E-SSO will be first acquired, but later an organically grown product offering - provided that IBM is successful with integrating not only technologies, but the Encentuate engineering, support, and sales resources. Past experience with similar acquisitions show that this often sounds easier than it actually is.
2. Other E-SSO vendors (ActivIdentity and especially Passlogix) will lose some of their market share and will need to ramp up investment in product development to be able to keep their leading edge in product functionality.
Overall, IBM's move signals that E-SSO has become a mature and viable technology which - in conjunction with user account provisioning - will continue to drive the IAM market growth.
Ping Identity announced that it acquired Sxip Access for an undisclosed sum. The rationale of the acquisition is to allow Ping Identity's products to meet enterprise-wide, typically SSO challenges. This is important to be able to further extend Ping's market share with software-as-a-service providers. Is it a breakthrough? Hardly. Questions still remain as to how major enterprises can integrate Ping Identity's new extended product line with an existing infrastructure in identity management and provisioning. Forrester increasingly sees broken ladder steps in the progression from the SMB market to the enterprise market for those identity and access management (IAM) vendors that have incomplete IAM product lines. Ping Identity still needs to make substantial investments to build an IAM suite, or forge strategic partnerships with pure-play provisioning and role vendors to successfully compete long-term in the IAM arena of large vendors.
One of the most substantial trends we expected to see in governance, risk, and compliance in 2008 is the tightening of regulations in response to major risk management failures. Yesterday, we saw a clear example of that, as the US Senate approved a bill that would nearly double the size of the Consumer Product Safety Commission, largely in response to the massive toy recalls that took place last year.
Also this week, the UK’s Medicines and Healthcare Products Regulatory Agency showed signs of cracking down on disclosure of drug trial results after problems persisted with certain anti-depressant drugs in relation to teenage suicide (even though criminal charges will not be filed).
The sub-prime issue may likely be the next major target for legislative changes, although most discussion seems to be focused on consumer protection at this point, not tighter control over lenders.
It has been a busy few weeks of news for whistleblowers. Earlier this month, former Merck sales manager H. Dean Steinke was awarded $68 million of the roughly $400 million recovered by states and federal agencies when the company settled a lawsuit he brought against it seven years ago. (This was part of a larger $671 million Merck paid to settle complaints of overcharging government health plans and offering inappropriate incentives to doctors to prescribe its products.)
While a number of whistleblowers have been lauded by the press over the years, Steinke’s $68 million presents the possibility of more tangible incentives to those aspiring to expose corporate crimes. Other recent, related news includes:
- Court extends SOX whistleblower protection. Last week, a US District Court judge in New York found that whistleblower protection under the Sarbanes-Oxley Act applies to employees outside the United States, helping empower virtual armies of international employees that may have something to report.
It’s official, the future of information management and infrastructure is software as a service (SaaS). Today, Dell announced its intent to acquire the powerhouse in email continuity and archiving, MessageOne. This acquisition will give Dell the cornerstone that it needs to build out its own suite of SaaS offerings. Dell clearly didn’t want to be left out of race as it watched Iron Mountain successfully building out its SaaS offerings and watched its competitors and partners complete significant acquisitions in the market including Seagate Services’ acquisition of Evault, EMC’s acquisition of Mozy and IBM’s recent acquisition of Arsenal Digital Solutions. Then there’s Symantec who is building out its Symantec Protection Network.
With Google, IBM, Microsoft, VeriSign, and Yahoo! joining the OpenID Foundation, we may actually feel that something in federated access management is going to change. It is finally not the case of a vendor proposing a new standard – and adding to the cacophony of federation standards – but a set of moves towards a simple technology that today can alleviate password management woes at service providers.
Technology aside, OpenID will greatly help with reducing and removing the legal obstacles in the way of identity federation’s proliferation. When payment-grade, commercial, and trusted identity provider service becomes a reality – VeriSign’s joining the OpenID camp clearly points in that direction – and software-as-a-service companies (like salesforce.com), accept OpenID authentication from these trusted identity providers, then enterprises can truly start thinking about outsourcing password management identity management processes. When required, strong authentication integration with OpenID can rely on VerSign’s VIP or other vendors’ strong authentication acceptance network.