Symantec splits up, a third in a series of Silicon Valley break ups, after Ebay and HP.

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Symantec Splits. Perhaps Two Is Better Than One.
Symantec Splits Up In A Series Of Silicon Valley Heart Breaks
 First, EBay Inc (EBAY) decided on 30th September to spin off its PayPal payments
unit from its market place business.
 Then Hewlett-Packard Co. (HPQ) announced their split on 6th October into two
companies by end of fiscal year 2015.
 Barely a week away, Symantec (SYMC) announced its plans on 10th October to
separate the company into two with an even more aggressive deadline of end
December 2014.
 Symantec’s split essentially reverses its $13.5
billion acquisition of storage company
VERITAS Software in 2005, and follows the
trend of splitting up to focus on faster
growing business.

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Symantec Splits. Perhaps
Two Is Better Than One.
 The reason given was that the security and storage industries are changing at a
fast pace. Both businesses need different strategies, investments and go to
market.
Symantec said the split will allow each company to:
 Focus on growth opportunities, research and development investments, and go-to-
market capabilities
 Reduce operational complexity
 Enhance strategic flexibility, pursue partnerships, and develop independent
mergers and acquisition strategies
 Set distinct capital allocation policies

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Symantec Splits. Perhaps
Two Is Better Than One.
Michael A. Brown will continue as the President and CEO of
Symantec focused on security.
 This business will focus on Symantec and Norton end point
security and cyber security services.
 According to Gartner, Symantec is the market leader at $4.2
billion with 18.7% market share, almost double of the nearest
competitor McAfee at 8.7%, followed by IBM at 5.7%. The
market is expected to reach $38 billion by 2018.
 In the security segment, Symantec helped pioneer anti-hacking technologies and
its Norton product line, made it one of the best known security vendors. However, it
has increasingly found itself out of step with the security industry. Symantec faces
escalating threats from professional hackers who rage battles beyond traditional
security protection of viruses and cyberthreats. The recent data breaches at
Target Corp, eBay, Home Depot and JPMorgan show how hackers are finding new
sophisticated ways against advanced detection systems.
 On top of that, Symantec’s anti-virus software which is attached to PC sales took a
beating with the PC slum, as its software was often bundled with the new
computers. Symantec had failed to catch onto the mobile market boom with
mobile security. If Symantec wants to be successful in security, it must gear itself
towards where more than half of the market spends and the fastest-growing
security areas of services, which includes consulting, outsourcing and
implementation.

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Symantec Splits. Perhaps
Two Is Better Than One.
John Gannon will be General Manager of the new information management business.
 This business will focus on backup and recovery, archiving, eDiscovery, storage
management and information availability services.
 Symantec claims to serve 75% of Fortune 500, estimated at 15% market share. This
market is expected to grow to $16 billion by 2018.
 Symantec’s appliance products have a 27% year on year growth and its back up
products are among the leaders in the segment.
 The information management market is likely to grow with new investments in
virtualization, software defined data center technologies and cloud solutions.
Increasing data growth requires technology for data management from back up,
recovery, access, storage anywhere and everywhere.
The split up companies are up for grabs from EMC,
HP, Cisco, Netapp and private investors. It would be
interesting to watch who will buy which company up,
depending on the investors' focus on revenue from
the cash cow or growth.