Tech leaders Symantec Corp. (SYMC) and VMware Inc. (VMW) announced a strategic alliance today at the Connect 2016 conference, reports Market Wired. The deal demonstrates both legacy tech companies’ push into emerging businesses such as the cloud and the Internet of Things (IoT). Further, the deal signifies the growing demand for end-to-end security management, from smart devices to data centers. Effective cybersecurity now calls for the leverage of advanced technology: machine learnings, big data, information intelligence, behavior analysis, zero-day threats, and more.
Legacy Giants Team Up to Stay Relevant
VMware, a leader in technology infrastructure, will merge its endpoint management system with Symantec’s threat security, as its latest cybersecurity partner joins the VMware Mobile Security Alliance. The IoT market, which allows for communication between smart devices, machine parts and the cloud, is expected to grow to $1.7 billion by 2020, calling for a larger scale address of cyberthreats.
Symantec points to the vulnerabilities of mobile security in particular, citing a 214% increase in new mobile vulnerabilities in 2015. The new partnership aims to create comprehensive security solutions, from devices to inside the data center, leveraging Symantec’s threat intelligence with VMware’s comprehensive endpoint management. (See also: VMware Unveils New AirWatch Solutions.)
The Mountain View, Calif.-based cybersecurity giant Symantec, has seen its stock rally since the beginning of 2016 as investors applaud the company’s transformation. Symantec stock’s 37% rise over the past six months can largely be attributed to its push away from backup security systems to new technologies such as cloud-protection software.
Similarly, VMware has undergone a wide-scale restructuring as the now Dell-owned company sells of non-core businesses to focus on building its cloud presence and next-gen endpoint solutions. VMware’s stock has also rallied an approximate 43% over the past six months, trading at a share price of $73.02 on Wednesday afternoon. (See also: Can Symantec Sustain Stock Incline?)
The Bottom Line
With VMware and Symantec both founded before the turn of the century, they join the wave of old-guard tech companies who find themselves struggling to stay relevant in emerging markets such as the cloud and the IoT. Amid an industry ever crowded with new niche startups, many big players choose to cozy up to peers, merging operations and taking advantage of scale.