HP Purchase of ArcSight Continues Tech Consolidation

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HP announced that it is purchasing ArcSight--a security and compliance management company--for about $1.5 billion. The move extends HP's buying frenzy and expands the scope of products and services HP can offer customers. It also extends the tech consolidation that has major entities like HP and Intel encroaching on each other's territory and gearing up to battle head-to-head.

HP is aggressively expanding beyond the traditional server / desktop model it was built on through a buying frenzy.
A joint press release from HP and ArcSight explains "Today's successful enterprises must provide their employees, partners and customers with more access to applications, services and information. This access and connectivity exposes enterprises to escalating threats, increasing complexity and regulatory challenges."

"HP's acquisition of ArcSight will enable the creation of a new type of security solution, one that serves the modern enterprise," said Tom Reilly, president and chief executive officer, ArcSight. "By combining ArcSight's Enterprise Threat and Risk Management Platform with HP's breadth of application development and operations management solutions, HP will be able to offer an integrated security platform that delivers broader visibility, deeper context and faster remediation of enterprise-wide security and risk-related events. In a world where perimeter security is no longer enough, businesses need this holistic approach to securing their networks, applications and sensitive data."

With ArcSight, HP can provide customers a more comprehensive view of IT operations and the current state of security and compliance. As HP moves into networking with the addition of 3COM, and the cloud with the addition of 3PAR (is it me, or does HP seem to have a thing for companies that start with "3"?), the ability to integrate security into the fabric of its services will be critical.

"From a security perspective, the perimeter of today's enterprise is porous, putting enormous pressure on clients' risk and compliance systems," said Bill Veghte, executive vice president, Software and Solutions, HP. "The combination of HP and ArcSight will provide clients with the ability to fortify their applications, proactively monitor events and respond to threats."

The industry is going through a massive consolidation and realignment with all of the recent mergers and acquisitions. HP acquired 3PAR, followed now by ArcSight. Intel bought McAfee, followed by Infineon. Cisco is allegedly buying Skype. RIM bought the Documents To Go technologies and developer team from DataViz. The list just keeps growing.

Now, if Microsoft would just enter the buying frenzy and pick up both Cisco and RIM, then things will really get interesting.

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