Skip to main content

Cisco To Acquire Scansafe For $183 million

Cisco has announced that it will be acquiring SAAS security company Scansafe in a deal expected to top $183 million and which will give the networking giant a foothold in the growing web-based security segment.

Scansafe is a well known software-as-a-service company that provides solution to small businesses and corporate clients alike. The company claims that it holds over 30 percent of the global SaaS web security market more than the combined marketshare of the likes of Websense, Blue Coat and Symantec.

The fact that the SaaS web security sector is set to grow at nearly 50 percent per annum for the next five years to reach $513 million by 2013 could well be the reason why Cisco has decided to invest now, in the midst of the worst recession in several decades. Other less conservative estimates put the total value of web security market at $2.3 billion by 2012.

Brian Burke, Program Director for IDC's security program which compiled the report, said that "Web 2.0 environments have become a major source of malware distribution, identity fraud, privacy violations and corporate data loss. ScanSafe helps organizations leverage the value of Web 2.0 tools responsibly without sacrificing security and regulatory compliance requirements."

Cisco acquired Starent Networks two weeks ago for $2.9 billion and earlier this months, splashed $3 billion on Norway's Tandberg ASA, a video conferencing specialist.

Scansafe is Cisco's second acquisition in the field of web security; back in 2007, it snapped email and web security software Ironport.

Our Comments

The concept of SaaS is attractive both to the client and the service provider for a number of reasons. Firstly, there's no licenses per se, only seats and it is therefore easier for the service provider to keep a tab on the active number of accounts. Then there's the fact that upgrades and updates can be rolled out seamlessly without the need of any system administrators at the other hand. This reduces the risk of zero-day security attacks for example.

Related Links

Cisco to buy ScanSafe for $183 million (opens in new tab)

(Forbes)

Cisco to Acquire ScanSafe for Web Security (opens in new tab)

(Eweek)

ScanSafe Named Worldwide Leader of SaaS Web Security Market by Leading Analyst Firm (opens in new tab)

(Scansafe)

Cisco plans to buy ScanSafe for $183 million (opens in new tab)

(Marketwatch)

Cisco to buy ScanSafe for $183 million (opens in new tab)

(Reuters)

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.