While there was no disclosure of the price tag, IBM's
Founded more than a decade ago, Watchfire has made several key acquisitions and has picked up more than $40 million in venture capital along the way. Now the company has a comprehensive system that allows customers to add security features while developing software applications. Its customers include Dell
"Watchfire has great technology," said Nick Selby, a security analyst at the 451 Group, in a Fool interview. "It helps deal with security problems early in the process. This is a big help and critical for Corporate America. Why should security be something done after an application is built?"
Watchfire is also a nice fit with IBM's Rational development tools segment. It should be an effective cross-sale for existing customers and may even persuade new customers to come over to IBM. With a bulk of Watchfire's sales from the U.S., there should be lots of potential in foreign markets.
Keep in mind that Watchfire has not only been a partner with Rational but also IBM's global services segment. This should help smooth the integration process.
Watchfire's market has been mostly a niche. But with the validation from IBM, this is likely to change. It will also mean that Big Blue can give even more reasons for customers to buy its growing line of software offerings.
Dell and Vodafone are Motley Fool Inside Value picks. Take a 30-day free trial.
More from The Motley Fool
IBM Struggled With the Tax Man in the 4th Quarter
A long-awaited return to actual sales growth was overshadowed by a $5.5 billion one-time tax charge.
IBM's Half-Decade Revenue Slump Is Officially Over
After 22 quarters, Big Blue is getting bigger once again.
This Dow Component Forged a Blockchain Joint Venture With This Global Logistics Giant
Though late to the party on cloud computing, this Dow stock is on the leading edge of blockchain development.