Symantec to follow new strategy for fuelling growth

Symantec has announced plans for separating into 2 public technology companies according to a new strategy that it is to follow for increasing growth. The separation is expected to bring more flexibility and focus in to the information and security management of the business. The two publicly traded companies will work independently. One of these will take up security management and the other one will take care of information management. The board of directors did an extensive review of the business strategy and organization structure of the company and came to this decision of separation. According to them dividing the company in to 2 standalone businesses will allow both of them to maximize their individual growth and will also increase the shareholder value.

We are observing a great rate of change in the information storage and security industries which gives rise to new opportunities as well as market challenges for Symantec’s business. Facing challenges in these two fields requires different approaches, innovations and investments. With this separation each of the companies will be able to focus on its opportunities, challenges, capabilities and investments in R&D. The operational complexity will be reduced by great margin leading to more flexibility. Also both of them will be able to take individual partnerships along with individual M&A strategies. Also the capital allocation policy for the two will be different.

Directors see the separation as maximization of the potential of the company as each one of them will thrive on its own substantial operational activities and finance. When it comes to security business, Symantec is a trusted brand and its market share is predicted to touch $38 billion. Its security business is considered to be the most advanced in this world. The security business will consist of consumer endpoint security, enterprise endpoint security, encryption, endpoint management, secure socket layer certificates, mobile, mail, web security, data center security, User authentication, managed security services, prevention of data loss and hosted security.

The company’s information business is also a world leader worth $11billion in market. Fortune 500’s 75 percent are known to be served by Symantec’s IM services. The first rank in the industry goes to the Symantec’s backup products and after that comes its appliance products. With the help of these services, the organizations are capable of harnessing their information’s power and make smart decisions.

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Image Source – Martin McKeay