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HP Acquires ArcSight for Enterprise & Managed Security

Hewlett-Packard continues to open its wallet wide, this time acquiring ArcSight for $1.5 billion. The deal potentially strengthens Hewlett-Packard's enterprise security and compliance management software portfolio. Moreover, ArcSight has a channel partner program for traditional VARs as well as managed security service providers (MSSPs). Here's a closer look at the deal. According to HP:

The VAR Guy

September 13, 2010

2 Min Read
HP Acquires ArcSight for Enterprise & Managed Security

hp acquires arcsight

Hewlett-Packard continues to open its wallet wide, this time acquiring ArcSight for $1.5 billion. The deal potentially strengthens Hewlett-Packard’s enterprise security and compliance management software portfolio. Moreover, ArcSight has a channel partner program for traditional VARs as well as managed security service providers (MSSPs). Here’s a closer look at the deal.

According to HP:

“The combination of HP and ArcSight will improve security, reduce risk and facilitate compliance at a lower cost for customers. ArcSight’s superior technology is highly complementary to HP’s existing security portfolio of hardware, software and services.”

By acquiring ArcSight, HP management essentially confirms that the company continues to march forward with its M&A strategy despite recent media distractions involving former CEO Mark Hurd, who recently joined Oracle as co-president. (Here’s all the HP vs. Oracle coverage.)

ArcSight is the second major acquisition HP has made in recent weeks. The earlier deal involved the $2.35 billion buyout of 3Par, which involved a bidding war with Dell.

No doubt, security software companies are prime acquisition targets. In addition to the HP-ArcSight deal, Intel recently acquired McAfee, and a private investment firm in May 2010 acquired Sophos. Plus, both Symantec and Trend Micro have been the subject of takeover rumors.

ArcSight Partners

ArcSight works with a range of VARs across numerous verticals. But government ranks among the company’s strongest vertical market. And a healthy number of MSSPs (managed security service providers) also promote ArcSight solutions to their end-customers.

Some of those MSSPs are expected to attend the upcoming ArcSight Protect 10 conference, scheduled for Sept. 19-22 in Washington, D.C. The VAR Guy will be tracking the conference closely for more reaction to HP’s buyout of ArcSight.

Oh, and here’s an ironic twist: ArcSight’s web site lists such strategic partners as Cisco Systems, IBM and Oracle. As of Sept. 13, 2010, HP is not included on that list. The VAR Guy suspects that list will change in the days ahead, though.

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