Security Swirl Points to H-P

IBM's (IBM Quote) $1.3 billion splurge for Internet Security Systems (ISSX Quote) has had tongues wagging about which security software makers could be snapped up next.

EMC (EMC Quote) kicked off the buying binge in June with its acquisition of RSA Security (RSAS Quote) for $2.1 billion, noting at the time that security was "a missing piece in our information infrastructure puzzle."

Data infrastructure companies represent the latest sector to focus on security, mimicking networking firms' security spree a few years back, according to a Thursday note from Robert Breza of RBC Capital Markets.

"You're seeing a move from securing data, to figuring out who has access to the data [and] that application, and how to secure that application ... that tends to be more of an infrastructure play than a networking play," Breza said in an interview.

The emphasis on application security and access has created a dynamic climate for infrastructure, networking and pure-play security firms.

"We recognize that many of the broad solution providers face pressure to have a security product that is difficult to develop organically, leaving M&A as the only real option," Breza wrote.

It's also not surprising that IT firms are looking at the security market. According to Gartner numbers, overall IT spending is growing 5% a year, and security spending is growing 10% a year.