IBM announced Wednesday it will buy security and compliance testing software company Watchfire Corp. The purchase price was not disclosed. Watchfire will be integrated into IBM's Rational software brand. A survey conducted by the FBI last year found that internal security attacks cost U.S. businesses an annual $400 billion. Watchfire's technology allows customers to identify and fix weak spots in their software while it is being developed rather than waiting until the products are on the market, thus reducing end-user vulnerability to malicious software attacks and spam. The technology is also designed to help customers ensure they are in compliance with legal and industry regulations. Watchfire's 800+ customers include financial services and technology companies around the world as well as governments. IBM Rational software general manager Danny Sabbah: "Watchfire is a recognized industry leader in the security and compliance market that will further strengthen our ability to help customers mitigate risk by integrating security, quality testing and compliance testing requirements early in the software development process -- before vulnerabilities are exposed." The deal is expected to close in Q3.
Sources: Press release, Reuters, New York Business, News.com
Commentary: IBM Expands Security Software Lineup With Watchfire Acquisition • IBM Forecasts Big Profit Jump by 2010 • IBM: Playing a Shell Game
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Conference call transcripts: IBM Q1 2007
Related: Watchfire website
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