EMC Expands Data Security Reach

SAN FRANCISCO -- EMC(EMC Quote - Cramer on EMC - Stock Picks) just got a foothold in one of IT security's hottest segments -- the prevention of data leaks from corporate networks.

RSA Security, the security unit of the data storage company, on Thursday announced plans to acquire privately held Tablus of San Mateo, Calif.

The buy will allow RSA to sell products that help companies find and identify sensitive data on their networks, monitor it closely and prevent it from leaking out through email and other hard-to-trace avenues.

Hopkinton, Mass.-based EMC did not disclose financial details of the transaction, which is expected to be completed early in the fourth quarter of 2007.

Shares of EMC were down 41 cents, or 2.2%, to $17.99.

EMC can also use this deal to boost its sales of software, which carries higher profit margins than do hardware and services.

Data management has become a high priority for companies because of increased regulatory requirements for privacy and record keeping as well as rising incidents of data loss through breaches and theft.

Consequently, EMC has begun to package data security software with its storage devices. It acquired RSA in June 2006 for roughly $2.1 billion.

Year to date, security has been one of EMC's fastest-growing businesses, far outpacing its core data storage sales, albeit from a smaller base.

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