IBM Buys Resilient To Strengthen Security Biz
IBM Security plans to acquire private cybersecurity firm Resilient Systems as part of a move to expand its role in the incident response market. According to the tech giant, the sale comes amid a consolidation in the cyber sector and a decline in valuations of public and private cyber firms. Some investors believe the companies were overvalued after a host of headline-grabbing hacks against the U.S. government and major corporations increased interest in the market.
Terms of the deal were not disclosed. The acquisition is being announced during the RSA security conference in San Francisco and expected to close later this year subject to regulatory review. IBM said it intends to retain the roughly 100 employees working at Resilient Systems, including Chief Executive Officer John Bruce, a former vice president at Symantec, and Chief Technology Officer Bruce Schneier, a prominent cryptographer, security blogger and author.
“Our intent is all these guys are going to come on board,” said Marc van Zadelhoff, general manager of IBM Security, told Reuters.
“You acquire technology, but you really want to acquire people.”Known as Co3 Systems when it was founded in 2010, Resilient Systems has become a leading player in the high-demand field of incident response by helping private and government customers prepare for, detect and mitigate cyber breaches, said Jon Oltsik, senior principal analyst at Enterprise Strategy Group in a statement.
Incident response is “hot in the market” where customers are spending a lot of money on cybersecurity to address their shortcomings, Oltsik told the agency.
According to a recent Ponemon Institute study, nearly three-fourth of the organizations do not have an adequate security response strategy in place, as a result they lack confidence in their ability to manage a major breach.
IBM’s revenue from its security division, which was formed four years ago with the purchase of QRadar, reached $2 billion in 2015. With cloud, analytics and mobile, the business is part of IBM CEO Ginni Rometty’s effort to refocus the company as it tries to navigate the “post-PC” era.
(With inputs from agencies)
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