Nemertes Impact Analysis

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Data Leak Prevention Is Looking Like Data Leak Consolidation

McAfee (NYSE:MFE) and privately held Sophos have both announced plans to buy
data leak prevention (DLP) companies: McAfee-Reconnex and Sophos- Utimaco
(FRA:USA). Data loss is a big problem.

In Nemertes' Security and Information Protection benchmark,
participants rated compliance with privacy regulation/legislation (HIPAA, GLBA,
SB1386, etc.) the most onerous. At the core, these regulations protect
personally identifiable information (PII): a main driver for DLP. These
consolidation moves underscore Nemertes' position that the CSO must first
develop a risk-based, integrated (people, process and technology) approach to
information security and then use DLP technology as a last resort; not the other
way around.

Impacts:

Enterprises: If you are a Reconnex or Utimaco DLP customer then these
acquisitions should give you a broader solution set integrated with DLP.

Vendors: If you provide security solutions, you need a DLP strategy.

Investors: Companies on the consolidation cheat sheet, include privately held
Code Green Networks, Palisade Systems, Proofpoint, Vericept and Verdasys.

http://www.nemertes.com/products_services/research/benchmarks/nemertes_benchmark_security_and_information_protection
http://www.eweek.com/c/a/Security/McAfee-Buys-its-Way-into-Data-Loss-Prevention-With-Reconnex-Purchase/?kc=rss
http://www.eweek.com/c/a/Security/Sophos-Eyes-German-Data-Loss-Prevention-and-Encryption-Vendor/?kc=rss

Ted Ritter, Research Analyst