RSA acquires Cyota for $145 million

It's very interesting to see RSA Security scooping up privately held Cyota, the New York-based online security specialist.

Although hardly known outside of the security industry, Cyota offers what are known as layered security solutions to financial institutions around the world. Essentially the company is a value-added systems integrator - but on a very professional level.

The deal will cost RSA Security around $145 million, mostly in cash, which shows how well things are going at RSA (fx: doffs cap).

RSA isn't stupid - it knows that the IT security marketplace is changing and has said publicly that it wants to be first to market with a risk-based layered authentication offering for companies.

Such technologies don't translate well into the SME segment that a lot of IT security companies currently offer their personal firewall/AV software into.

I suspect 2006 is going to be a watershed as far as the SME IT security marketplace is concerned, with many applications being enhanced with the addition of centralised pooling of IT security information, as is already the case with Zone Lab's paid-for offerings like ZoneAlarm Security Suite.

The big question, of course, is how SMEs, SoHo and consumer users will react to the knowledge that their PC is being protected by a pooled IT security resource.

And what happens if the security of the centralised resource is compromised?

It's a worrying thought, isn't it?....


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