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Why $1 Billion is too much (or too little?) to pay for Security

Security is one of the great market segments of the technology world as it's not typically driven by seasonality or cyclical demands. Security needs are constant and evolving.

Simply put, no enterprise on the planet can afford not to invest continuously in security—for fear of being attacked and embarrassed in a public breach. It's in that context that security vendor FireEye acquired security firm Mandiant this week for the sky-high sum of $1 billion in stock and cash.

On the surface, $1 billion seems like an absurdly high price for a company that has only 500 customers. It's also somewhat ridiculous that FireEye, a company that generated $160 million in revenue for all of 2013, is paying so much and has the ability to do so.

Read the full story at eWEEK:
FireEye's $1B Mandiant Buyout: Is the Price Too High or Too Low? -

Sean Michael Kerner is a senior editor at InternetNews.com. Follow him on Twitter @TechJournalist.