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Symantec-Veritas Doubts Linger; Symantec Stock Takes Another Hit
Symantec-Veritas Doubts Linger; Symantec Stock Takes Another Hit

Symantec has yet to convince the stock market of the wisdom of its pending $13.5 billion acquisition of Veritas and whenever it talks about it, it only makes the situation worse.

Symantec and Veritas did a joint presentation of the merger Wednesday, which explains why Symantec's stock took another hit.

Credit Suisse, for one, is worried that Veritas' storage software is going to be a drag on Symantec's growth and says Symantec "must show evidence that the combined product portfolios can grow faster together than as separate entities."

CSFB observes that a bigger product portfolio is not necessarily a better product portfolio especially in this case.

It says that as currently constituted the combined Symantec-Veritas product set "does not form a truly holistic infrastructure management solution that offers comprehensive visibility across the IT infrastructure" and doubts that it "could provide cross-selling leverage" or "increase growth rates for both companies' core business."

Instead it calls the combined portfolio "an amalgamation of a larger collection of point product functionalities that will continue to be sold to stovepipe operational segments of enterprise IT departments."

The broker is also worried that competition will intensify and that Symantec will now have to ward off BMC, Computer Associates, EMC, HP, IBM and Mercury Interactive as well as defend its traditional turf from Microsoft's onslaught.

About Maureen O'Gara
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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Another misbegotten merger made in Hell?




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