Let me say that I think the spinout is a great move. The storage management software products that are the foundation of the new company are different from Symantec’s security offerings. The focus of Veritas will be on the management of storage and information. The tangential (but related) areas will no longer be distraction. And as a public company, the valuation will be on the storage management products.
This should benefit the future of Veritas and the products. For a company to be successful over the long term, it must invest in research and development. There is no way to have long-term success by using the “saving your way to profitability” approach some executives take by cutting development and staff when their stock is pressured. These actions destroy a company’s future. With the new focus on the Veritas products and business, the company can make the necessary investments to improve its products to continue and increase revenue streams. Also, it can produce extensions of those software technologies with new market opportunities. New products can also come over time.
It is easy to look back on the Symantec acquisition and say that it was a bad move. Many did say that, including some within the company and independent analysts. From our perspective at Evaluator Group, we were skeptical of the acquisition because the people who make decisions and purchases in organizations are different for security and storage management. That meant there was little credit given for a company that acquired another set of technology products. If anything, it led to concern of long-term viability.Back to Analyst Blogs