Internet security major Symantec Corporation (SYMC) recently came out with the latest version of Symantec Data Insight 3.0, which will improve information management and facilitate the usage of unstructured data such as documents, presentations, spreadsheets and emails.
The improved version of Symantec Data Insight 3.0 will help organizations to enhance their storage operations, transforming their information governance processes, and thereby, help companies to better manage costs, reduce risk and achieve compliance.
We believe that the new solution will have a number of takers as most enterprises are looking to transform their information governance process. As per research data published by Gartner, the growth rate of data in today’s businesses lies in the range of 40.0% to 60.0%, with unstructured data growth in the enterprise at around 80.0%. This is becoming increasingly difficult to manage and protect.
Symantec has recognized this opportunity and has developed this software for IT organizations, which are encountering the challenging task of data management and governance.
Apart from tapping new opportunities in data management, the company is also winning new orders for its Internet mobile security solutions. This fact is further emphasized by Samsung Electronics selecting Symantec’s flagship product, Norton Mobile Security for a 90-day complimentary subscription on its Galaxy smartphones. Samsung is one of the largest smartphone sellers in the U.S., selling phones that run on Google’s (GOOG) Android OS.
Moreover, Autodesk Inc. (ADSK) has selected SymantecCorporation’s Clearwell eDiscovery platform.
On the other hand, the integration between McAfee and Intel has occurred within the embedded business and industry experts are of the opinion that this will form the first phase of its mobile security approach. McAfee and Intel Corp (INTC) jointly announced a foray into the mobile device space, which is set to enhance competition between McAfee (now a part of Intel Corporation) and Symantec.
Increased competition notwithstanding, the company’s third quarter results were impressive, with both the top and bottom line surpassing our estimates. Geographical and segmental performances were largely good although the EMEA and Service segments turned out to be the spoilers.
Although the company is slowly gaining a foothold in the mobile security and data management market, uncertainty regarding PC sales is expected to affect its Consumer segment this year. Moreover, reduction in tech spending by different government and private organizations, stiff competition from McAfee as well as the prevailing economic turmoil in Europe may have a dampening effect on the company’s business prospects. Symantec’s guidance was also weak, and we believe that this could be due to the above mentioned reasons.
Currently, Symantec has a Zacks #3 Rank, implying a short-term Hold rating.
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