IBM breathes US$1.5bn into its security business

IBM has announced it will spend US$1.5 billion on security product development and marketing in 2008, and its US$1.3 billion acquisition of ISS will integrate into IBM Global Technology Services.

"Twelve to 18 months back, our approach to security has been to tack it on to other business units," said David Williams, business unit executive, security and privacy services for IBM Global Technology Services ANZ.

Enterprise security vendor ISS will become part of IBM's Global Technology Services division.

"At a market level, security is not on its own. A lot of the players in the market are good niche players in their realm of expertise, but a lot of clients are looking for a high level of advice to navigate the maze of security challenges facing them," said Williams.

"In our discussions with clients, we think that security should be considered part of business strategy. For large enterprises it is, but for the SMB and mid-market, security purchases are still based around putting out a spot fire they had yesterday rather than meeting needs in 18 months time."

The official transfer of trade for the ISS acquisition happened on 1 October 2007, however, the amalgamation of the two companies has taken longer in Asia Pacific because of its different corporate structure in the region.

ISS has 200 employees in Asia Pacific, mostly based in Japan. Since the acquisition, it has increased its Australian staff from 21 to 33.

IBM on several occasions has publicly committed to invest US$1 billion in market areas that it considers promising, including Linux, products for medium-size business initiatives, and partner programs.

Martin LaMonica from CNET News.com contributed to this story.