Partner Speak: Consolidation of the UTM Market is a Reality

By Yogesh Gupta Feb 26th 2015
Partner Speak: Consolidation of the UTM Market is a Reality
The shrinking number of UTM companies is making it extremely challenging for channel partners to retain their vendor alliances and grow the security business.

The UTM landscape has shrunk through a slew of M&As since 2011. Security giant Sophos bought European UTM company Astaro in 2011. Dell jumped into network security by acquiring SonicWALL, three years ago. And Sophos surprised everyone when it acquired India-bred UTM vendor Cyberoam, 12 months ago.

Also Read : 'Change of Guard' for Cyberoam, SonicWALL, Gajshield

This highlights how attractive the UTM market is to security vendors. Another indicator is Dell entering the fast growing IT security market with its SonicWALL buy.

As WatchGuard fired its India team in January, it ended its over-a-decade-old presence in the region. Although it isn’t shutting shop in India, the industry is counting it as one player less in the security market.

Also Read: Security Channels Foresee Rough Road for WatchGuard in India

With fewer UTM players and bigger market opportunities, channel partners continue to relook their vendor alliances and importantly live with this volatility.

Enterprise channel companies talk about the consolidation happening in the UTM market and what it means to the security business of Indian IT firms:

S.Sriram, CEO, iValue Infosolutions

“Brands with one or two unique offerings find it difficult to engage and grow their customer and partner network. The customer too prefers an integrated suite of solutions with a single management window. Hence, consolidation or integration of niche offerings is the way forward.

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Jitesh Chauhan, Director, Rubik Infotech

“IT vendors, today, want to provide everything--all products--under one Umbrella. Sophos didn’t had any presence in India and by buying Cyberoam it has achieved that in the fast growing SMB segment. Compared to other economies, the cost of development is inexpensive in India, and Sophos would like to take advantage of that."

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N.K. Mehta, MD & CEO, Secure Network Solutions

"Acquiring market share and killing competition could have been the objective of Sophos buying Astaro, and three years later, acquiring Cyberoam. Dell bought SonicWall to get the UTM / firewall product in their portfolio and that opened up a new business line for Dell."

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Ashok Kumar, MD & CEO, RAH Infotech

“Traditional security providers like Sophos have been struggling with their legacy solutions. Buying high growth companies like Astaro and Cyberoam, complete its security solution stack, helping it achieve inorganic revenues and growth numbers. Dell is moving into high margin, high growth domains like security and storage."

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Gautam Verma, Director, Magic Systems

"That the UTM business is witnessing good growth is true but strong competition often hampers margins for UTM companies. Since the past five years, M&As have become common as most vendors want to emerge as end-to-end solution providers."

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V.Anand, CEO, Raksha Technologies

“Consolidation definitely helps to deliver efficient products and technology to customers at competitive prices. Sophos and Dell acquiring UTM companies doesn’t harm customers and it will only help channels and customers to address the changing security landscape in an efficient manner.”


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Sudhir Sharma, Director, Versatile Infosecurity

“Sophos buying Astaro and Cyberoam is a masterstroke that certainly adds value to both companies and its clients. But there are a few problems for partners while proposing a UTM solution to the end customer, which might remain until the complete merger between the two takes place.”

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