New product introduction is becoming routine for Internet security major Symantec Corporation (SYMC). The company recently unveiled the partner-only beta release of Backup Exec 2012 and Backup Exec 2012 Small Business Edition. These backup solutions would be available through the company’s distribution channel.
The mainstream use of virtualization, Data explosion and a 24/7 business model have posed a significant backup challenge for IT organizations. Moreover, with the introduction of Backup Exec 2012 beta, Symantec seeks to help eliminate backup complexity through a single solution that merges virtual and physical deduplication and replication while offering an option among on-premise software, appliance, or cloud delivery models that best fits the organization’s requirements.
This apart, the company has also launched products relating to Internet mobile security. The company recently announced the Symantec Mobile Security Assessment Suite, which offers a set of new services to evaluate mobile security postures and develop defenses against mobile threats and vulnerabilities.
Based on Symantec's extensive knowledge base and technical and operational expertise, Symantec Mobile Security Assessment Suite provides enterprises with strategic and tactical recommendations for the secure deployment of mobile devices and applications.
The Internet security market is growing steadily and offers incremental growth opportunities. We expect the network security market to return to the pre-recession growth levels going forward. The global network security market, described as hardware and software with functionality, which includes segments such as firewalls, VPNs, intrusion prevention and detection, and multi-purpose security known as unified threat management, are expected to generate higher revenues in the coming years and the company is well positioned to capitalize on this opportunity.
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 seize the vast opportunities in the security market. On the other hand, reduction in tech spending by different governments and private organizations remains a near-term concern. Moreover, the current economic turmoil in Europe may also dampen the company’s business prospects in that region.
This apart, intense competition from big and small players as well as the threat from Microsoft Corp.’s (MSFT) new Windows operating systems may hinder margin expansion to a certain extent.
The company has a zacks#3 rank, implying a short term Hold rating.
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