Microsoft Snaps Up Sybari

Microsoft Corp. (Nasdaq: MSFT) has again opened its M&A wallet in an attempt to secure key data center hardware.

Following hot on the heels of the deal to snap up spyware specialist Giant Company Software Inc., Microsoft today announced its acquisition of anti-virus vendor Sybari Software Inc. (see Microsoft Acquires Giant and Microsoft Acquires Sybari).

Terms of the deal were not disclosed, and it's not known yet whether the Sybari will retain all of its employees or its headquarters in East Northport, N.Y. Microsoft, based in Redmond, Wash., has been using Sybari's products to protect its own communications infrastructure for the last eight months.

Sybaris story is all about protecting messaging servers from viruses, worms, and spam. The vendor offers a range of products covering the likes of instant messaging, Microsoft Exchange, and Lotus Domino.

It's a strategic move for Microsoft, according to Maxine Holt, senior research analyst at Butler Group. "There is an element of PR behind this latest deal. They need to be seen doing more with security, and this is one way to do it,” she says. “It’s good for their customer relations to be seen doing this.”The analyst also believes that following last year’s EU anti-trust ruling, Microsoft is now looking for products it can sell as an add-on to Windows.

Holt expects Microsoft to reach into its wallet again soon. ”I would expect Microsoft to continue along this road,” she says. “They have very strong designs on the anti-virus and anti-spam marketplace.”

So, who will be the next Microsoft target? Holt doesn't speculate, but she thinks Microsoft's aim is likely to be for a pure-play vendor, specializing in just anti-virus products. This is most likely to be a firm without “a broad-enough range of products to prevent them from being an acquisition target,” she says.

Peter Firstbrook, program director at Meta Group Inc., is ready with suggestions. "The potential candidates could include someone like Sophos Plc.," he says. "They are a medium-sized firm with good technology."

Microsoft is also turning up the heat on its security competitors Symantec Corp. (Nasdaq: SYMC) and McAfee Inc. through this latest deal.There's also a chance for Microsoft to widen its footprint at the enterprise level. Sybari has amassed a broad range of partners, which include the vendors’ rivals Computer Associates International Inc. (CA) (NYSE: CA), NetIQ Corp., and Sophos.

Sybari also has a strategic alliance with Veritas Software Corp. (Nasdaq: VRTS), which was recently snapped up by Symantec in a blaze of publicity (see Symantec & Veritas: It's a Deal).

Microsoft was unavailable for comment for this article.

— James Rogers, Site Editor, Next-Gen Data Center Forum