Analysis: Behind 3Com's TippingPoint Spin-Off

July 30, 2007 - You may have missed, but the 4,200 last month announced a plan to effectively to divest one of its information security and the jewel in the crown: the TippingPoint, provide an intrusion prevention system (IPS) and security services to enterprises and public sector and service provider customers of fun.

3 Com Corporation for the purchase of 430 million US dollars TippingPoint nearly three years ago. Analysts fear that This, in their opinion, regardless of the risk of financial and competitive is open to question.

For the record, 3 Com company plans to execute a initial public offering (IPO) of common stock of TippingPoint, it now control as a wholly owned subsidiary.

If nothing, industry observers said the move showed that, 3 Com is seriously deal with its open network initiative.

"[T] announced signals a major change in the direction for the company strategically 3 Com and it demonstrates that the company is willing to walk its talk against the seriousness of it, 3 Com Corporation in promoting open service network, as it long-term business vision, "wrote Andrew braunberg and Charlotte Dunlap, analyst with consultancy Current Analysis. Although braunberg and Dunlap have described the spin-off is a "gamble" They also believe that, after the merger of the three Com - TippingPoint never really breakthrough sum of its individual parts.

"[T] he combination of 3 Com and the TippingPoint has never threatened over TippingPoint single. 3 Com Company does not pull TippingPoint the SME market TippingPoint and the limited success, and increased 3 Com company into the enterprise, " they wrote.

In other places, they said, there are several undeniable benefits transactions 3 Com Corporation, which "need to reduce costs in its core security, network integration (SCN) enterprises ", the meeting adopted its own stripping TippingPoint, which is how many relatively easy braunberg and Dunlap said.

"In addition, 3 Com SCN company to reconsider the sale of small and medium-sized enterprises to enter the market, and a relatively easy task, without worrying about the TippingPoint business, which target high-end enterprise sale, "they said.

Then there is a public service network perspective.

"[Transfer], will make it easier for 3 Com Corporation, in order to attract security partners to its open network service initiatives .... Obviously, when osn news announced in January 2007 it will be difficult to 3 Com Company positioned itself as a neutral ball hand in the security market with the TippingPoint " two ended. "3Com Corporation as a couples initial security partners, most notably in the first laboratory, but in the six months since there has been, and no progress has been made to attract security partners. Spinning TippingPoint can prove that 3 Com is serious attitude provide an open and neutral platform for best-in-class services. More tactics, the TippingPoint , is a good candidate for a public offering. The company has been leading the IPS provider for many years, the technology is mature and respected. " - Stephen s woyer