This Insight evaluates the acquisition of Veritas Software by Symantec Corp., which was first announced on December 16, 2004. IDC's initial reaction to the announcement is discussed in the event flash document Symantec Acquires Veritas (IDC #AP53404L, December 2004). The transaction was finalized on July 2, 2005, following the approval of the merger by both companies' shareholders on July 1, 2005. IDC believes the acquisition positions Symantec to be a key player in enabling secure availability. However, the success of the merger is dependent on the "new" Symantec's ability to integrate the Veritas products into its core offerings and avoid confusion and disagreements with channel partners and customers as the combined entity integrates its organizational and IT infrastructures. In the short term, the vendor needs to convince and convert skeptics to buy into its "information integrity" story. Studies have shown that integration execution issues, specifically around the channel management, sales, and marketing, stymie the success of mergers. Additionally, it is critical that the combined entity is able ensure the Veritas brand and identity in the storage software market, grow the Symantec brand in change and configuration and performance management software markets, and stay ahead of the competition, specifically Microsoft, in light of the latter's aggressive forays to expand its addressable markets. This report discusses the implications of the merger to the "new" Symantec's APEJ operations and the potential execution challenges the firm must overcome.

Companies Mentioned: Symantec; Veritas

• In This Insight
• Situation Overview
• Figure: Asia/Pacific (Excluding Japan) Secure Availability Software Market, 2004
• Figure: On the Road to Dynamic Resilience: From Information Integrity to Secure Availability
• Future Outlook