Tag: StoneSoft

McAfee, Stonesoft merger bad news for channel

Intel-logoCompetition in the security market is increasing, meaning businesses and consumers could eventually end up paying higher prices to keep their PCs protected, resellers have warned.

The comments come as it was announced that Intel’s McAfee was splashing $389 million on the purchase of Stonesoft a security company that delivers software-based customer-driven cyber security products to secure information flow and simplify security management.

McAfee said Stonesoft’s product portfolio of next-generation firewalls would help it “extend its leadership position in network security.” It said it planned to integrate Stonesoft’s offerings with other McAfee products such as its cloud-based Global Threat Intelligence services.

However, resellers aren’t convinced the company is doing it to perfect the security world, claiming the buyout will stifle competition and keep customers “over barrels.”

“Intel and other big vendors are gobbling up smaller companies, closing the competition,” one told ChannelEye.

“This means that eventually we’ll be left offering clients only a few security software options at higher prices for the vendors but lower margins for us as we try and compensate for their greed.”

Another agreed, claiming companies were using the fact that everyone needed security to rake in the cash.

“The security world has gone mad. But then big security companies can afford to splash the cash. Not only do they charge extortionate amounts for security but have many over a barrel. It’s like car insurance,” he told ChannelEye.

“Everyone needs it to be safe but no one wants to pay the premiums for it.”

Others also pointed out that although it was a good time to be in security, resellers rarely benefited.

“It’s big money in the security software market if you’re at the top, as this proposed buyout has shown,” he said.

“However resellers like us rarely see the fruits of the profits. Our clients are often quite au fait with security and buy off the shelf, or won’t spend the money we require to see rewards.”