SI acquires Cisco SON unit, Broadcom’s Symantec enterprise consulting team
The Lowdown: In the last days of May, the India-based company announced it was buying Cisco Systems’ self-optimizing network (SON) technology for a reported $49 million and most of Broadcom’s Symantec Enterprise security consulting business.
The Details: Cisco’s SON technology leverages machine learning and an array of applications to automate the radio access network (RAN), which improves performance, brings together the multiple technologies that comprise a RAN, and enhances existing infrastructures. The acquisition will boost HCL’s capabilities among telecommunications customers, which include top-tier communications service providers.
Some Cisco employees who worked on the SON technologies will move to HCL as part of the deal, which is an expansion of a two-year preferred service partnership between Broadcom and HCL. The latter, which has more than 150,000 employees, collected more than $94 billion in revenue during a 12-month period that ended in March.
As part of the deal, most of the team from the Symantec Enterprise Division’s consulting arm will move to HCL, including those working on the security of endpoints, cloud, and the web, as well as data loss prevention (DLP). The Symantec employees will be folded into HCL’s Enterprise Studio, which delivers professional services for Broadcom enterprise software solutions.
The Symantec U.S. federal consulting services and cyberthreat analysis programs will stay with Broadcom’s Symantec Enterprise Division.
The Impact: The moves put HCL in a better position in two fast-growing areas of the tech industry. According to a Fortune Business Insights report, the overall cybersecurity market will expand from $112 billion last year to more than $281.7 billon by 2027, fueled by such trends as the continued adoption of e-commerce platforms and the emergence of disruptive technologies like artificial intelligence (AI), blockchain, and the Internet of Things (IoT).
While 5G, the next-generation cellular technology, has been talked about for years and carriers have built out their 5G networks, it wasn’t until this year that the ramp was to begin in earnest, though the global coronavirus outbreak is expected to depress sales of 5G-enabled mobile phones. However, a report from MarketsandMarkets said the 5G market should grow from $748 million in 2019 to more than $47.7 billion by 2027, an average of 67.1% a year.
Background: Broadcom bought Symantec’s enterprise business last year for $10.7 billion, though the company has since sold off pieces of it, including the security service unit to systems integrator Accenture in January.
Over the past year, HCL has been busy expanding its service capabilities through acquisitions and partnerships. A year ago, the company launched an enterprise software business after buying seven IBM product lines, and later rolled out new dedicated businesses around Google Cloud and Microsoft.
The Buzz: “The enhanced partnership with Broadcom combined with HCL’s rich legacy in cybersecurity will help our customers establish a secure environment to further explore and pursue their enterprise growth objectives,” said Abhishek Shankar, senior vice president at HCL.
“This is the next phase of a successful relationship between our two companies, built on HCL’s proven professional service model and their Enterprise Studio offering,” said Art Gilliland, senior vice president and general manager at Broadcom’s Symantec Enterprise Division. “This agreement will provide Broadcom customers the expertise and services needed to ensure their mission-critical infrastructure software needs are met.”
“HCL’s decision to make this acquisition comes in line with our Mode 3 strategy. As we expand our footprint in this space and support the mobility needs of our customers, the SON products and services will now be included in our telecommunications offerings. This will gain further importance with 5G networks,” said Sukamal Banerjee, corporate vice president at HCL. “We are proud to lead the next phase of the Cisco SON business journey, especially regarding 5G, and look forward to supporting new and existing customers with continued innovation. We also want to extend a warm welcome to the Cisco SON team members joining HCL.”