Six ways to protect your systems in a merger

17.01.2007
Mergers and acquisitions present extra challenges for IT network security. Inevitably, a merger combines security organizations with different security philosophies, policies, technologies and needs. "If one company has a policy that all security needs to stay in-house and the other has outsourced its security apparatus, obviously they have a conflict," says Chris Ellerman, national security practice director at Dimension Data North America.

And that presumes that the merging organizations are in the same vertical industries. When the merger crosses verticals, the differences can be even greater and in some cases aren't completely reconcilable. "I've seen mergers that resulted in two divisions permanently operating on different security levels on a single IT backbone due to the requirements of their vertical industries," Ellerman said.

Ellerman offered the following tips for organizations that are either preparing for possible mergers in the coming year or are now involved in a merger process.

1. Do not approach a merger of security systems lightly. The large number of security device vendors in the market guarantees that each partner in the merger will have a very different mix of security devices and technologies, even if their business structures and IT infrastructures are otherwise similar.

"Security is often linked directly to specific applications," Ellerman said. "Disrupting those security systems can shut down vital business services, possibly bringing the business of one of the acquisition partners to a halt. Obviously, you cannot do that." Instead, he recommends that the two organizations continue to operate separately, possibly with extra security in the links between their IT organizations, while a security team that should include experts from both organizations evaluates the situation.

2. Enter the merger with a plan. "Companies like Oracle that are experienced in handling acquisitions have a plan that they can put into effect the day the merger is finalized," Ellerman says. "Based on the size of the acquisition, they can call their vendors and order the devices they need as soon as they are notified of the merger. The speed with which these organizations can absorb a new acquisition can be astounding."