IBM bolsters security with $1.3bn ISS deal

IBM continues spending spree with Internet Security Systems purchase

IBM today stepped up its recent spending spree agreeing to pay approximately $1.3bn in cash to acquire security software and services specialist Internet Security Systems.

The company said the deal - which is expected to close in the fourth quarter – will bolster IBM's credentials in the managed security services and help customers proactively protect themselves against internet threats.

IBM said it plans to incorporate ISS into its IBM Global Technology Services division and integrate its security software portfolio with its own Tivoli security management line, including identity management, access management, service oriented architecture (SOA) security and security information management suites.

It will also make use of ISS' X-Force security intelligence service, which proactively protects networks with analysis of global online vulnerabilities and threat conditions.

Tom Noonan, President and CEO of ISS, said in a statement that the growing complexity of security issues meant firms were increasingly interested in proactive managed security services.

"By delivering an integrated security platform that is adaptable and extensible to address new threats and business requirements without incremental complexity and cost, ISS has delivered the foundation for delivering security as a service," he added.

The deal represents the fourth acquisition IBM has announced this month and is likely to spark some questions about IBM's ability to handle multiple large scale integration projects.

On August 10th the company announced it plans to pay $1.6bn for enterprise content management specialist FileNet prompting criticism from some analysts that there was considerable overlap between the two companies' portfolios and that integration could prove tricky.

Writing in a research note Sue Clarke of Butler Group claimed that it was difficult to see what real benefit IBM will gain from the acquisition of FileNet. "In terms of functionality both vendors provide broadly the same capabilities, so there are limits to the number of features that could realistically be integrated together," she wrote.

Earlier in August, IBM also announced plans to buys asset management software vendor MRO Software for $740 million and privately held SOA specialist Webify Solutions.