IBM to acquire Internet Security Systems

In a story that’s not technically a CRM piece but should produce aftershocks felt everywhere in the massive computer sector, IBM today announced a definitive agreement reached to acquire and Internet Security Systems, Inc. in an all-cash transaction at a price of approximately US $1.3 billion, or US $28 per share. The transaction is expected to close sometime before the end of the year.

Internet Security Systems provides security solutions to companies and governments with software, appliances and services. monitor and manage network vulnerabilities and exploits and rapidly respond in advance of potential threats. ISS will join IBM as a business unit within IBM Global Services’ Security organization. IBM will utilize ISS’ X-Force security intelligence service, which seeks to proactively protect networks with analyses of global online vulnerabilities and threat conditions.

The ISS global network of security operations centers includes sites in Tokyo, Brussels, Brisbane, Detroit and Atlanta, and will be added to IBM’s existing global network of such security centers. IBM security consultants and global sales force will also offer ISS’ line of security appliances and software, promising to fully enable it for IBM and third-party products.

Other post-acquisition action to be taken by IBM with regard to their new toy includes establishment of ISS operations as a business unit within IBM’s Infrastructure Management Services unit; integration of ISS software technology with Tivoli’s IT service management portfolio; marketing and sales of ISS’ managed security services and other portfolio items through IBM’s and ISS’ worldwide sales channels and business partners; and expansion of scope and capabilities of IBM’s business and IT asset management consulting practices.

News reports across the board are praising IBM for the acquisition, a move which most feel reinforces IBMs position in the niche market of managed security services. IBM now takes a leap forward in issues from data theft to implementing and managing regulatory requirements. IBM strategists see the acquisition as key to IBM’s security and privacy services business. ISS’ product line and extensive expertise, says IBM press material, will in theory complement IBM security research efforts, consulting and managed service delivery capabilities.

Security advisor ISS, Inc. was founded in 1994. Today, ISS products and services are based on the security intelligence of its X-Force research and development team, touted as “a world authority in vulnerability and threat research.” ISS currently boasts more than 11,000 customers worldwide, including 17 of the world’s largest banks, 15 of the largest governments, 11 public insurance companies and 13 IT organizations.