Building The New EMC, One Acquisition At A Time

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The second is event management, or the real-time processing of data for security purposes. "ArcSight is the leader," Hoffman said. "There are lots of others in this space, too. Names you've never heard of."

The third is security information management, which includes the reporting and forensic analysis of where security problems occur. Network Intelligence is the leader here, Hoffman said.

Network Intelligence is the key player here because it is involved in all three areas, Hoffman said. The fact that competitor ArcSight leads the event management space is not a concern, he said, because EMC already has technology in that space thanks to its February, 2005 acquisition of Smarts.

EMC's new security division, which incorporates the RSA and Network Intelligence acquisitions, is organized as a stand-alone division. Almost every employee from the two original companies joined the new division, Hoffman said.

It is organized into four business units. Three of the four units, namely identity assurance and access management, consumer-facing identity and fraud detection, and data security, come from RSA. The data security unit includes RSA's BSAFE-branded data encryption technology and RSA Key Manager (RKM). The fourth business unit is Network Intelligence.

Over time, the security division will have its own specialized sales force, with each business unit having its own sales specialists.

On the channel side, Network Intelligence has traditionally been a channel-friendly company, and EMC will work with its channel partners, Hoffman said.

EMC is also working to ensure that EMC's own direct and indirect sales channels do not interfere with its new acquisitions' sales efforts. There is little synergy between RSA's SecurWorld and EMC's Velocity channel programs. To protect and grow RSA's channel, and to not subject it to EMC cannibalization, EMC plans to keep the two separate.

"EMC's direct sales can't quote RSA products, but RSA is part of their quota," he said. "If an EMC sales rep stumbles onto a potential RSA deal, he can't generate a quote. But he can link with a group of RSA sales reps who can then engage the appropriate partner."

Going forward, EMC will move to integrate technology from its new security acquisitions into the rest of the company's product line, including its storage and content management products, Hoffman said.

The company already has integrated RSA's encryption and key management technologies into its Documentum offerings. The Legato NetWorker and Retrospect data protection software currently use non-RSA encryption technology. "It's a safe bet they will eventually use RSA," Hoffman said. "But encryption is a commodity. The key management is the most important technology."

That encryption key management technology will eventually become a part of every EMC product for which encryption is appropriate, Hoffman said. "RKM is extremely broad," he said. "It will work with a wide range of devices, not just storage or databases."

For instance, Hoffman said that every EMC storage product needs to authenticate the administrators and the junior administrators to protect the data within. One of the ways to protect the storage array is to challenge an administrator with something stronger than a password, such as RSA's identity management technology. Also, he said that junior administrators often need different views of the data based on their restrictions. And every storage platform needs to have a way to manage and audit its logs.

As a result, Hoffman said, EMC's security division will be very busy in terms of integrating with the rest of EMC. "If our division is not the most integrated division in the company within 15 months, we've made a big mistake," he said.

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