[ISN] The Post-Sony World: Why A Defense Contractor Bought A Cybersecurity Firm For $1.9 Billion

https://www.fastcompany.com/3045271/welcome-to-the-post-sony-world-why-a-defense-contractor-bought-a-cybersecurity-firm-for-19-b By Neal Ungerleider Fast Company April 22, 2015 One of the worst-kept secrets in the cybersecurity world is out: Raytheon, one of the world’s biggest defense contractors, just spent a staggering $1.9 billion on a cybersecurity company called Websense. It’s one of the biggest tech deals so far this year. So why is a military firm best known for building missiles plopping down money for software and tech talent? The answer doesn’t have to do with cyberwar, but with the sweet, sweet cash of corporate America. Let’s explore what this means. Because of a number of high-profile hack attacks over the past two years—Target, Sony Pictures, and JPMorgan Chase, just to name a few out of an even larger number of publicized and covered-up breaches—corporate America is running scared. Fear of liability, fear of customer loss, and fear of stumbling stock prices and brand reputation mean that enterprise customers feel compelled to shell out big, big bucks for cybersecurity products. Corporate boards are, perhaps understandably, nervous. That global market, which analyst firm Gartner pegs at being worth approximately $76.9 billion in spending for 2015, is something Raytheon and its competitors want a big part of. The defense contractor has had enterprise-oriented cybersecurity products on the market for quite some time, but has only made limited market inroads. About 50% of Websense’s customers are overseas, which also gives Raytheon considerable pull outside their core market in America. […]