The deal combines the benefits of Novell's identity and systems management expertise with e-Security's real-time event monitoring, response and reporting capabilities. With a comprehensive view of user, network and application events, customers will now be able to streamline a previously labor-intensive and error-prone process, cut costs through automation, and build a more rigorous, predictable security and compliance monitoring program.

"In the compliance area, customers want converged solutions that encompass system, identity, access and security event management," said Chris Christiansen, IDC vice president of security products and services. "With the acquisition of e-Security, Novell is the only vendor with the potential to proactively address business needs for a real-time, comprehensive compliance solution that integrates people, systems and processes."

Automated Compliance Monitoring and Reporting

From government regulations such as Sarbanes-Oxley, Basel II and HIPAA to corporate governance initiatives, regulatory environments have become increasingly complex. Too often, organizations are left to rely on varying information sources and tools to monitor compliance, an approach which is inefficient and error-prone. To streamline workflow and ensure data accuracy, Novell is focused on delivering an infrastructure for more comprehensive security and event monitoring. With the addition of e-Security's award- winning product, Sentinel 5, Novell can deliver a solution that provides a real-time, holistic view of security and compliance activities, while helping customers monitor, report, and respond automatically to network events across the enterprise.

A Holistic Approach to Security and Compliance

"Compliance is changing the way companies think about security and identity management: the focus now is on automating and reporting results, as well as responding to events and non-compliant activities as they happen," said Jack Messman, chairman and CEO of Novell. "Novell's acquisition of e- Security demonstrates our commitment to this growing market, leveraging a core element of our business to deliver robust security and compliance solutions that meet our customers' needs in an increasingly regulated business environment."

Reed Harrison, founder and chief technology officer of e-Security, said, "Combining Novell's expertise in identity management with our real-time security event monitoring and reporting capabilities will create an unmatched solution. As a member of the Novell family, we can now help redefine how customers think about security and compliance."

Sentinel 5 can be purchased from Novell beginning in May. The next version of the Novell and e-Security solution is expected to be available this summer.

Novell paid $72 million to acquire e-Security. Novell estimates a positive revenue impact from the acquisition of roughly $20 million in the coming 12 months.