IBM has made yet another big announcement over the past several days, this time regarding their purchase of Israeli startup Trusteer. The deal is said to be worth more than $800 million which further cements Israel’s dominance in the global technology and data security sector.
Over the past several years IBM has invested heavily in data security and cloud software services. This is seen as a top priority for IBM. While the exact number of IBM servers is unclear, they are said to house more than 8 million square feet of data center space. More importantly, IBM believes the acquisition of Trusteer provides a superior advantage in protecting cloud data over customary security software by stating that the “software can identify security threats that can be missed by traditional security software.”
Trusteer CEO Mickey Boodaei further elaborated, “We concluded that one of the technology’s main applications is in preventing fraud carried out by taking over the end-user’s computer and carrying out online bank transactions – a kind of fraud that was causing hundreds of millions of dollars in losses to banks around the world at the time.”
Many technology firms, such as Intel, are known to run an enormous part of their operations in Israel. IBM plans on keeping the central components of Trusteer in Israel. IBM already houses a security lab in the U.S. which focuses on protecting key systems. The Israeli center will focus more of their efforts on mobile security and cyber warfare. This could serve as a major catalyst for IBM’s growth in this area as more focus is put on cloud storage for mobile devices.
Brendan Hannigan, GM of IBM’s security division, added, “If we think of the most pressing problems which are facing our clients today in security, a lot of it is related to malware, fraud and sophisticated attacks. Trusteer had this strong technology that we didn’t have within our division.”
IBM will employ 200 workers in the Israel center responsible for research and development. This brings the total number of Israeli companies purchased by IBM to 10.