Updated 12/26/2019 – The rumor mill says that Dell Technologies is working with too big to fail Morgan Stanley in a bid to sell off RSA Security.
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Is RSA available? In keeping with the wave of cybersecurity mergers and acquisitions the rumor mill is reporting that Dell is exploring the sale of its RSA Security business unit. If the rumors are correct, RSA can be had for at least $1 billion. Rumors about Dell potentially selling RSA have surfaced multiple times over the past few years.
Dell inherited RSA in 2016 as part of its $67 billion acquisition of EMC. EMC bought RSA for about $2.1 billion in 2006. RSA Security was founded in 1982.
RSA is well-known for its products. Well known products include SecurID multifactor authentication tokens and NetWitness for security incident event management and threat detection and response. However, RSA is probably best known for its annual RSA Conference in San Francisco. RSA faces many of the same issues that have precipitated the HP – Xerox face-off. The challenges include competition from fast-growing cloud and software based identity and access management (IAM) firms. The RSA challengers include Okta and Ping Identity, according to Bloomberg.
Why is RSA Available
Dell may have put RSA on the block because it is redundant in the Dell portfolio. Dell also owns Secureworks, an MSSP that’s evolved a software-defined era led by threat detection and management services. Additionally, Dell’s VMware business now owns Carbon Black — an endpoint protection and cybersecurity company that works closely with MSSPs. Dell has been connecting the dots between Secureworks, VMware, and Carbon Black as part of its own enterprise security strategy.
Neither Dell nor RSA commented on the Bloomberg report.
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As I have noted a number of times on Bach Seat, the cyber-security market is seeing lots of M&A action. If Dell is really serious about unloading RSA, now is the time to do it. Before the cyber-security bubble bursts and/or the economy tanks again. Not only would selling RSA streamline Dell’s security story the $1 billion would allow Dell to pay down its debt after its purchase of EMC or fund other projects.
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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedIn, Facebook, and Twitter. Email the Bach Seat here.