What Will Spell Success

By Paul F. Roberts  |  Posted 2005-12-05 Print this article Print

for RSA?"> Oltsik said the results of RSAs Cyota purchase will depend on how successful RSA is at bundling the companys services and technology with its own offerings, enticing customers to buy packages of services and software from one vendor rather than cherry-picking them from other companies such as Internet Security Systems Inc. or Symantec Corp. RSA is under increasing pressure to find new sources of revenue. Secure tokens have dropped in price in recent years.
Identity/access management also continues to be a difficult and competitive corner of the technology marketplace. and the companys investments there have not produced hoped-for returns, Oltsik said.
RSAs earnings have been flat in 2005, and there was evidence Monday that the company is looking to shake things up. Along with the Cyota news, RSA said it was eliminating development centers in Vancouver, British Columbia, New York and San Mateo, Calif. Around 120 software engineers and other technical staff work in those centers. Read more here about RSAs security middleware. RSA will be offering a small number of those people jobs in its Bedford, Mass., headquarters. The rest of the positions will be moved to development groups the company has in Brisbane, Australia and Bangalore, India, where RSA works through outsourcing firms like HCL Technologies Ltd., RSAs Worral said. The company also announced that CFO Jeff Glidden, who has served for three and a half years, was leaving. Glidden is going to work for a private company he helped fund. In a statement, Glidden said he leaves RSA with a strong balance sheet, and that the Cyota acquisition is a "good strategic decision" for RSA. Worral said the move was unrelated to the other announcements from RSA, and credited Glidden with helping RSA comply with the complicated Sarbanes-Oxley Act regulations and with leaving the company on solid ground financially. Experts, including Oltsik, also speculated that RSA was prettying itself for potential buyers. With a large customer base, solid cash reserves, new technology from Cyota and a streamlined engineering operation, RSA could be an attractive target for larger companies such as Oracle Corp., Computer Associates International Inc. and IBM, Oltsik said. Check out eWEEK.coms for the latest security news, reviews and analysis. And for insights on security coverage around the Web, take a look at eWEEK.com Security Center Editor Larry Seltzers Weblog.


Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel