The consolidation in the software industry is starting to happen. After Oracle finally managed to acquire PeopleSoft, Symantec is set to buy Veritas. WSJ writes on the significance:
Symantec Corp. agreed to acquire Veritas Software Corp., combining security and data-storage technology to create the world’s fifth-largest software company in an all-stock deal initially valued at approximately $13.5 billion.
The combination is intended to give Symantec — best known for its consumer software that protects personal computers from viruses, worms and other security threats — the heft to vie with software-industry giants such as Microsoft Corp., International Business Machines Corp., Oracle Corp. and SAP AG for a greater share of slow-growing corporate technology budgets. The rash of viruses, worms and hacker attacks, along with increased regulatory burdens, have put security software and data-storage systems at the top of the shopping lists of many technology buyers.
The deal reflects the convergence of security and data storage for disaster recovery, regulatory compliance and other functions. For example, corporate e-mail systems need to scan incoming messages for spam and viruses, distribute the workload of the computers that process e-mail and maintain archives of old messages to comply with regulations.
Corporate customers want to reduce the “complexity and cost” of managing technology, and “drive efficiency with fewer suppliers,” said John W. Thompson, Symantec’s chairman and chief executive.