EMC, a global leader in Information Technology as a Service (ITaaS), announced that it would acquire Identity and Access Management (IAM) vendor Aveksa. Terms of the deal were not disclosed, but Aveksa had raised over $28 million in venture funding and the company was in hyper growth mode where Q1’13 revenue increased 134% over total revenue for the same period in the prior year. License and maintenance revenue for the company increased 207% during the same period. Typical to most companies in the ITaaS industry, the revenue split between license/services is approximately 80% / 20%. With this profile and multiples in the space, the deal could easily be over $200 million (speculated at $225 by the Times of India).
We believe that this is a good move for the RSA division of EMC as the acquisition will bolster its access governance portfolio and the company will be able to better compete with IBM, Oracle and NetIQ amongst others that sell similar access governance capabilities. Enterprises find it complicated managing access governance across enterprise and cloud environments as employees use multiple devices and bring your own device (BYOD) has become more popular at work places. Access must be granted to each device the employee carries while managing rules about what data can be accessed within the walls of the company or outside.
Aveksa has the capability to add situational awareness, the ability to be adaptive to changing work place environments with BYOD as well as multiple devices. In addition, Aveksa can give business lines and departments the ability to grant privileges to data and software, rather than relying on corporate IT departments. This helps shorten the on boarding and off boarding times for employees while effectively managing corporate data security.
The question remains as to what Intel will do in response to this acquisition, as we have not seen much from the company since it added McAfee to its security portfolio.