Dell buys SecureWorks for IT security services

PC vendor continues the spending spree

Dell announced Tuesday it is purchasing security services vendor SecureWorks, expanding its range of IT management offerings. Terms were not disclosed.

SecureWorks handles more than 13 billion "security events" and spots some 30,000 varieties of malware each day, according to a statement. Its customer base of about 2,900 clients includes more than 1,500 financial institutions and more than 15 percent of the Fortune 500.

The Atlanta company has roughly 700 workers and expects to log about US$120 million in revenue in its fiscal 2010, Dell said. Its current operations will be maintained, according to Dell.

SecureWorks has grown via acquisition itself, [picking up VeriSign's managed security services business and DNS Limited last year.] The latter move gave SecureWorks a foothold in the European market.

SecureWorks and Dell had an existing partnership. Earlier this year, the companies announced plans to deliver a set of SMB-focused security services, including around-the-clock monitoring and Web application scanning.

Dell is buying into a growing market segment. Managed security services providers in North America accounted for $1.8 billion in revenue during 2009 and that number is expected to rise to $2.3 billion this year, according to a recent Gartner report.

The acquisition will bring Dell into closer competition with security service providers such as Verizon Business and Symantec. It also seems to dovetail with other recent Dell acquisitions, [such as storage vendor Compellent].

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Chris Kanaracus

IDG News Service/Boston Bureau
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