Home > Uncategorized > Yeah, I don’t get Symantec, either…HuaMantec?

Yeah, I don’t get Symantec, either…HuaMantec?

Alan beat me in blogging about something I discussed @ our Interop Blogger’s dinner last week, namely the absolute bewildering announcement made by Symantec:

Symantec Corp. and Huawei Technologies Co., Ltd. are forming a joint
venture company to develop and distribute security and storage
appliances to global telecommunications carriers and enterprises.

The joint venture will help operators and enterprises address
challenges arising from maintaining IP networks and IT systems that
support a growing number of connections. This requires balancing
increasing performance and availability requirements with system
security and data integrity.

Initially the offering will include security and storage appliances
addressing those issues. The new company will be headquartered in
Chengdu, China, with Huawei owning 51 percent of the joint venture and
Symantec owning 49 percent.

Huawei will contribute its telecommunications storage and security
businesses including its integrated supply chain and integrated product
development management practices. Additionally, the new company will
have access to Huawei’s intellectual property (IP) licenses, research
and development capabilities.

Symantec will contribute some of its enterprise storage and security
software licenses, working capital, and its management expertise into
the new company. Symantec will also contribute US$150 million toward
the joint venture’s growth and expansion.

The joint venture is expected to close late in the calendar year, pending required regulatory and governmental approvals.

What he hell, over!?  Perhaps they forgot about this announcement almost around the same time last year wherein ’twas quoted:

The announcement
is evidence that Symantec is shifting its strategy away from being a
"one stop shop" for security wares, and will focus on lucrative
security management and services, said John Pescatore, a vice president
at Gartner.

announced the changes internally yesterday, saying it was a "change in
its investment strategy in the network and gateway security business."
The news was accompanied by lay-offs affecting approximately 80
employees in the company’s SGS unit, a company spokeswoman said.

…after the 3Com buyout of the last venture between 3Com and Huawei, perhaps they’re going to pick up the pieces?  Are we going to see a yellow version of the M.I.A. 3Com M160 since they’re not doing anything with it?


Perhaps the first thing they can do for the Chinese market is to fix the Symantec Autoupdate feature:

According to reports from the Chinese state media last night, an
automatic update to the Chinese version of the Norton anti-virus
software sent out last Friday identified two critical Windows XP files
as malware and deleted them.

As a result, millions of Chinese
PC users have had to re-install their operating systems or, if they
have planned ahead (and are lucky), used the RESTORE function from the
XP emergency recovery menu.

China Daily says that many companies are threatening to sue Symantec for large sums of money for lost working time. Symantec has reportedly made formal apology on Wednesday.


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  1. June 3rd, 2008 at 07:55 | #1

    Business combinations, merger, acquisition, and joint venture are not easy to execute and they most often don’t live up to their expectations. There have been several studies done on mergers and acquisitions announced in the last 20 years and in well over 60% of the cases the synergy was not realized. When synergy doesn’t materialize the acquiring company ends up damaging shareholder value because premiums paid to take a significant equity stake in a target company are not recouped. However, by understanding a company’s motives for buying, selling, or partnering a business, how the decision fits in with their overall corporate strategy, and the careful identification of the characteristics of an ideal target, the chances of success can be greatly increased. effective post merger integration is a big key to success.

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