Cisco Systems, Inc. (NASDAQ:CSCO) and International Business Machines Corp. (NYSE:IBM) have joined forces as part of an effort that seeks to combat the ever growing cybercrime threat. The two tech giants have confirmed plans to share threat intelligence information when investigating major cyber-attacks as they did during the ransomware debacle.
Cisco-IBM Cybersecurity Partnership
Under the terms of the deal, Cisco is to create apps for IBM’s Security Analytical Platform all geared towards analyzing potential security breaches. People will be able to access the apps on IBM’s Security App Exchange, which boast of a wide range of third party apps. IBM Global Services will in return be used to support Cisco products in security services.
Making security tools interoperable is also high on the agenda as a way of making it easy for customers to access and use products on offer. The integration is also part of an effort that seeks to help the two companies’ better respond to attacks while protecting customers.
Race For Cybersecurity Services Revenue
The partnership should go a long way in strengthening the two companies’ hold of the fast growing market for outsourced Cybersecurity services. Cisco is fresh from reporting a 9% year over year increase in revenue from its security services unit.
Buoyed by the increase CEO, Chuck Robbins, has reaffirmed plans to pursue more mergers and Acquisition all in the effort of boosting revenues on this front. IBM also reported a 9% increase in security revenue in the first quarter.
While it is not unusual for security firms to team up, the latest partnership is unique in its own right. The two tech giant’s boast of security businesses worth more than $2 billion each. By teaming up the two should be a force to reckon with in the space according to Cybersecurity Ventures CEO, Steve Morgan.
“Putting IBM and Cisco together, they become almost like the two-headed monster in security. The size and scale of what they would have together would be unrivaled.” said Mr. Morgan.
International Business Machine stock was up by $0.90 in Wednesday trading session closing the day at $152.63 a share. Cisco on the other hand was on the receiving end shedding 0.47% in market value to close the day at $31.53 a share.