Msg#: 4135950 posted 3:35 pm on May 20, 2010 (gmt 0)
Reports surfaced Tuesday that VeriSign had been shopping around its encryption technology and service business, and naming Symantec as the buyer.
The VeriSign business unit sells SSL (Secure Sockets Layer) certificates -- used to authenticate secure Internet servers -- two-factor authentication tokens, fraud detection and public key infrastructure products for government and the enterprise. But the business has grown slowly of late, hurt by dropping SSL certificate prices, a fact that is reflected in the unit's low purchase price relative to its $371 million in annual revenue.
Msg#: 4135950 posted 1:13 am on May 22, 2010 (gmt 0)
I have friends who work at Symantec, and they're also our largest customer.
They're a behemoth. They have huge government contracts around the world (not just the U.S. gov't, but all throughout the Middle East, East and West Europe, Asia, and South America).
They're continuing their growth strategy with this. Namely, growth through acquisition and the attendant "synergies" - namely, laying people off who are "redundant". That's been their strategy for over a decade, and it's made them as big as they are, so why stop now?
The number of smaller security consultancies, companies that make networking management software (Veritas is one people here might be familiar with), and assorted data-management companies they've acquired over the years is staggering.
I won't comment either way about the quality of their products or treatment of employees.
But as a business move, this really isn't surprising. Their consumer software division is an afterthought. A blip on their overall revenue stream.