Cyber Security Providers Prepare For New Wars
NEW YORK (The Deal) -- The New Year has been auspicious for cyber security companies.
Meanwhile, the recent high-profile hacks of Target's
"There is much need to innovate because the bad guys continue to innovate," said Imperva CEO Shlomo Kramer, who is a serial investor in the security industry. Kramer backed Trusteer, a malware and fraud protection software company that IBM
"Today the bad guys are the nation-states and organized criminals that are extremely sophisticated. There is a need to continue to innovate," Kramer said. "This makes information security a very dynamic environment with more segmentation and more acquisitions and more activity than other similar IT markets."
The pace of recent M&A has been steady. Following FireEye's purchase of Mandiant, Palo Alto Networks acquired Morta Security to improve its defenses against advanced persistent threats and campaigns intended to infiltrate a company's network in order to steal data.
Last summer, Cisco Systems
IBM purchased Trusteer, which protects Web applications, computers and mobile devices, for a reported price of $700 million to $1 billion.
In short, more data stored in more places traveling to more devices will continue to draw more miscreants trying to steal it. The rapid development cycle of cyber attacks places a premium upon technology that defends against these new forms of incursions. The demand from businesses seeking that protection makes the price worth paying.