Consolidation: Plague or Progress
This essay appeared as the second half of a point/counterpoint with Marcus Ranum. Marcus’s half is here.
We know what we don’t like about buying consolidated product suites: one great product and a bunch of mediocre ones. And we know what we don’t like about buying best-of-breed: multiple vendors, multiple interfaces, and multiple products that don’t work well together. The security industry has gone back and forth between the two, as a new generation of IT security professionals rediscovers the downsides of each solution.
The real problem is that neither solution really works, and we continually fool ourselves into believing whatever we don’t have is better than what we have at the time. And the real solution is to buy results, not products.
Honestly, no one wants to buy IT security. People want to buy whatever they want—connectivity, a Web presence, email, networked applications, whatever—and they want it to be secure. That they’re forced to spend money on IT security is an artifact of the youth of the computer industry. And sooner or later the need to buy security will disappear.
It will disappear because IT vendors are starting to realize they have to provide security as part of whatever they’re selling. It will disappear because organizations are starting to buy services instead of products, and demanding security as part of those services. It will disappear because the security industry will disappear as a consumer category, and will instead market to the IT industry.
The critical driver here is outsourcing. Outsourcing is the ultimate consolidator, because the customer no longer cares about the details. If I buy my network services from a large IT infrastructure company, I don’t care if it secures things by installing the hot new intrusion prevention systems, by configuring the routers and servers as to obviate the need for network-based security, or if it uses magic security dust given to it by elven kings. I just want a contract that specifies a level and quality of service, and my vendor can figure it out.
IT is infrastructure. Infrastructure is always outsourced. And the details of how the infrastructure works are left to the companies that provide it.
This is the future of IT, and when that happens we’re going to start to see a type of consolidation we haven’t seen before. Instead of large security companies gobbling up small security companies, both large and small security companies will be gobbled up by non-security companies. It’s already starting to happen. In 2006, IBM bought ISS. The same year BT bought my company, Counterpane, and last year it bought INS. These aren’t large security companies buying small security companies; these are non-security companies buying large and small security companies.
If I were Symantec and McAfee, I would be preparing myself for a buyer.
This is good consolidation. Instead of having to choose between a single product suite that isn’t very good or a best-of-breed set of products that don’t work well together, we can ignore the issue completely. We can just find an infrastructure provider that will figure it out and make it work—who cares how?