Security monolith, Network Associates, Inc. (Nasdaq: NETA) has reorganized itself
to become a holding company of four independent security subsidiaries: PGP Security,
Sniffer Technologies, Magic Solutions, and McAfee Corporation which spun off
with its own IPO last December. Each of the four divisions stand to hire their
own CEO or president to lead the strategic developments of their respective
top of the new business model, Network Associates is opening a new front door
to its four lines of business called MyCIO.com.
It is clear that Network Associates hopes to benefit from the increased attention
the IT market, the government, and CIO's, are giving information security. However,
with a website called www.mycio.com, they have more in mind than just security.
As security vendors bask in the lavish attention the IT market is giving them,
it makes sense to leverage this attention to create in-roads to new opportunities.
Aside from being a new door to their product suite, MyCIO.com will host security
applications, and will in essence operate as a security ASP.
Associates' savvy business strategy is a new trend which will become much more
ubiquitous in the future Information Technology industry as a whole. As companies
start to use the CMGi e-Village strategy to leverage new business, we will see
an increase in the paradigm where larger holding companies reorganize themselves
as directors of smaller independent entities. This new paradigm has many advantages
that large organizations need in order to survive in this fast-paced and agile
playing field of Internet startups and cyberwannabes.
legacy network infrastructure and legacy business processes, startups can more
quickly maneuver their positioning in an ever changing battlefield. By dividing
into separate entities, large corporations such as Network Associates can more
easily keep pace with Internet startups by keeping their product and service
lines focused and autonomous. Each Network Associates division will be able
to take advantage of reduced operating costs by using a central IT infrastructure,
which is exactly how CMGi rolls-its-own Internet companies.
off new divisions is also a way for Network Associates to cook up some new public
offerings with stock options, which is just what they need to attract new security
engineers, and retain existing key personnel. The market for capable security
engineers and security managers is tight. Stock options through new IPOs is
one way to give talented security engineers an opportunity to take ownership
and feel more connected to the success and bottom line of an organization .
What can we expect to see from Network Associates moving forward?
Associates' new strategy will enable it to foster closer relationships with
customers, and more easily position itself for faster business alignment with
Associates will use MyCIO.com as a new marketing front door for its security
products focusing on enterprise security solutions instead of tactical point
integration of its MagicSolutions HelpDesk product, Network Associates will
market www.mycio.com as an on-line web-based enterprise solution center empowering
IT decision makers to resolve TCO and ROI security challenges via security technology
selections from Network Associates .