Contact: Scott Denne
Hightail acquires secure file-transfer startup Adept Cloud, a unique move in an industry that has focused on usability over security. But the deal could also become a precedent as security concerns start surfacing in cloud buying decisions, forcing some companies to look to M&A to remain relevant.
So far, we’ve seen very few acquisitions of security companies by cloud file-sharing providers. In fact, of the 18 combined acquisitions in the past four years by Hightail and its many competitors, the purchase of Adept Cloud is the first that’s focused on security technology.
The dearth of deals is a result of most vendors being more concerned with usability than security. Customers aren’t using these services for top-secret corporate data, so security isn’t at the top of their priorities, either. But that’s slowly changing. While no IT managers surveyed by TheInfoPro, a service of 451 Research, in the last half of 2012 cited security as a roadblock to implementing cloud technologies, 7% of respondents changed their mood in the survey done in the first half of this year.
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