Menu
Is Symantec selling off Veritas business?

Is Symantec selling off Veritas business?

Vendor distances itself from reports that it is being pressured into exploring the sale of its storage storage unit Veritas, for as much as $8 billion.

Symantec has moved to distance itself from reports that the company is being pressured into exploring the sale of its storage storage unit Veritas, for as much as $8 billion.

Growing media reports claim the struggling security vendor has approached NetApp, EMC and several private equity firms to gauge interest in the business. which the company purchased for $13.5 billion a decade ago.

Sources familiar with the matter believe the Veritas business, which has struggled to live up to expectations following sluggish demand for storage and data management products, will be strengthened significantly by the company’s upcoming split, which could make it a more attractive acquisition target for fellow tech giants in the market.

That however has been widely dismissed by Symantec, who maintain plans to continue to split the company into two, independent publicly traded companies: one business focused on security and one business focused on information management.

“We are on track to separate Veritas and Symantec into two independently traded companies by the end of the calendar year,” a Symantec statement read. “One focused on information management and one focused on security.”

Symantec’s decision to pursue a separation follows an extensive business review of the company’s strategy and operational structure.

For the vendor, creating two standalone businesses will allow each entity to “maximise its respective growth opportunities and drive greater shareholder value.”

In January, Symantec announced Veritas Technologies Corporation as the name for its independent publicly traded information management company, alongside a new logo.

“Veritas remains a powerful brand that still has tremendous equity with our customers, partners and employees, and after careful review it was an easy choice as the name for our information management business,” said Michael A. Brown, president and CEO, Symantec, at the time.

“While the name recalls the company’s heritage, the new logo signals that Veritas is ready to solve the most critical information challenges facing our customers today and tomorrow.”

The Veritas business generated $2.5 billion in revenue for Symantec in fiscal year 2014, competing in markets that are an estimated $11 billion today, potentially expanding to $16 billion in 2018 with a CAGR of 7% from 2013 to 2018.

New Zealand

Growing speculation about the company’s future follows a month in which the vendor officially withdrawn its direct enterprise sales team from New Zealand, ultimately placing the company’s solutions in the hands of its partners network.

As reported exclusively by Reseller News, the move has subsequently resulted in significant change for the New Zealand division of the company.

“Effective April 2015, Symantec will withdraw its direct enterprise sales team from New Zealand,” a company spokesperson told Reseller News.

“Symantec will continue to maintain its presence and service the New Zealand market for enterprise solutions through its local distributor and extensive partner network, who offer local knowledge and an ability to scale into regional areas.”

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags veritassymantecsecuritysoftwarenetappemc

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments