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RealTime IT News

Trusting Security to Outside Systems

Companies routinely outsource security applications for many of the same reasons they opt for working with application service providers -- it's a cost effectiveness means to assure a technically complex end.

According to industry experts it costs three to five times as much to build an internal information technology team tasked with securing Internet-based applications, as it does to outsource a business's security systems.

Breakaway Solutions Inc. is banking on the increased demand for outsourced security solutions in order to grow its market share as a full service ASP.

In order to beef up its portfolio of network security solutions, Breakaway Monday moved to acquire norSEC Inc., a Web-based firewall specialist.

The deal allows the application service provider to pick up a team of network experts tasked with developing Breakaway's advanced security services.

One of norSEC's flagship products, dubbed manageIT, will be put to work immediately to enhance Breakaway's current firewall and intrusion detection services. The application provides automated security tools for real-time monitoring, anomalous activity detection, backups, event escalation, and monthly reporting.

Gordon Brooks, Breakaway president and chief executive said its ability to offer around-the-clock managed security services in conjunction with complex hosting highly applications would enable customers to focus on their core businesses.

"With companies facing increased security concerns due to more complex and frequent attacks, having the most robust, cutting-edge security expertise to support mission-critical applications is a key component in maintaining and supporting our customers' e-businesses," Brooks said.

A recent IDC report on managed security services states that an independent third party could manage security more effectively than an internal IT staff that has the full-time job of monitoring network and system performance.

As the workforce dwindles, many companies do not have the resources to maintain expert staff to focus solely on security issues. Administrators become prone to settle for default configurations leaving network weak ripe for intrusion.

Charles Kaplan, norSEC founder and president, said Breakaway is a very logical fit because the firm knows the value proposition of full life cycle management.

"Breakaway's FSP model is exactly the belief we followed in developing norSEC's service offerings," Kaplan said,

Dev Ittycheria, Breakaway senior vice president of application hosting, said deploying successful ASP-based services is all about safekeeping clients.

"To succeed in the ASP marketplace, it is important to earn the trust and confidence of customers by successfully managing and protecting their mission-critical applications," Ittycheria said.

Financial terms of the agreement were not disclosed. The acquisition requires typical regulatory review and is estimated to close in about 60 days.