Internet security software maker Symantec Corporation (SYMC) recently rolled out the Symantec Endpoint Protection cloud and Backup Exec cloud, which are now being offered to partners in the United States and Canada through Symantec’s traditional distribution channel.
By delivering Symantec’s cloud-based endpoint protection and backup solutions, partners now have a better choice with respect to how they bring solutions to customers and how they make the most of the growth opportunity in Software-as-a-Service (SaaS).
Cloud computing offers a massive opportunity for companies and Symantec is all set to take advantage of the situation. Symantec’s 2011 State of Cloud Survey indicates significant potential in the market. . With less than 20.0% of the 5,300 companies surveyed having implemented cloud-based solutions and as many as 81.0% evaluating them, Symantec’s partners should benefit.
Symantec is also moving ahead with strategic partnerships. The company recently entered into a strategic partnership with VMware Inc.(VMW) to develop Desktop-as-a-Service (DaaS) solutions in order to provide secure, pre-integrated and well-managed enterprise-quality virtual desktop computing environments for enterprises and IT service providers.
With this deal, Symantec will leverage VMware’s virtual desktop and cloud infrastructure solutions including VMware View, VMware vShield, VMware vCloud Director 1.5 and VMware vSphere 5 with Symantec’s Endpoint Protection and the Altiris Client Management Suite to deliver a secure, manageable and cost-effective DaaS solution.
Moreover, the company is also enhancing its Norton series of solutions, recently rolling out an enhanced personalized security service product named Norton One, which is expected to protect consumers across multiple devices. The product is expected to provide the option of selecting a combination of solutions that work for them to provide total security for the connected household. End users will be able to access the service from the first half of 2012.
As per the data from the company’s market research department, U.S. consumers have an average of 4.5 devices in their household, which consists of desktop computers, laptops, tablets, mobile phones and other devices. We believe that all these devices will need comprehensive customized protection, which in turn will enhance the market for Norton One.
Given its significant share in the fast-growing security market and the acquisition of VeriSign’s identity/authentication business, we believe Symantec will be able to capitalize on the vast opportunities in the security market. Customers and channel partners are providing positive feedback on the company and strategic ties with VMware Inc. and Salesforce.com Inc. (CRM) are expected to be accretive to earnings this year.
On the other hand, the company is facing intense competition from big and small layers, as well as the threat from enhanced security being offered by Microsoft Corp.’s (MSFT) new Windows operating system.
Currently, Symantec has a Zacks #4 Rank, implying a short-term sell rating.
