Major Internet security manufacturing company Symantec Corp. (SYMC) 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.
The jointly developed DaaS solution will provide a comprehensive Service Driven Cloud Infrastructure based on existing vCloud and vSphere infrastructures from VMware. This service will likely enhance the speed in the cloud environment, offer improved security in the cloud environment from both internal and external threats originating from email, web and storage vectors, and provide end-to-end configuration and control of applications, which will make it easier for the company to operate through centralized control using the Symantec Client Management Suite.
Moreover, the company has also introduced new V-Ray technology enhancements to Backup Exec 2010, which will help organizations provide greater visibility into their physical and virtual environment with a single backup solution, thus saving time and reducing overall complexity.
This apart, we believe that the growing importance of cloud computing, mobility and virtualization will accelerate the need for security. To capitalize on the surging demand, Symantec introduced a number of products, which encompass all its businesses. They are also positive about a modest growth in the consumer vertical, which had lagged in the past few quarters.
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.
Despite the intense competition from big and small players, as well as the threat from Microsoft Corp.’s (MSFT) new Windows operating system, we believe Symantec’s technology will enable it to deliver decent results in the coming quarters.
Currently, Symantec has a Zacks #3 Rank, implying a short-term Hold rating.
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