NAI goes to pieces as suite strategy fails to take off

Security vendor Network Associates (NAI) last week split itself into four independent business units.

Security vendor Network Associates (NAI) last week split itself into four independent business units.

The change signals a significant shift in the company's strategy. Previously it tried to provide customers with suites of interlocking security software that covered firewalls, anti-virus and network performance monitoring tools.

After the split, NAI's units will be: McAfee, which will develop antivirus software; PGP Security, which will create encryption, firewall and virtual private networking tools; Magic Solutions which will manufacture helpdesk software; and Sniffer Technologies, which will offer network management services.

Clive Longbottom, strategy analyst Strategy Partners, said the move signals recognition by NAI that it was unable to put together a suite that users will buy.

"This is a technical failure, Network Associates had all the bits but it didn't put in enough work to get the whole thing working together and give it a consistent look and feel," Longbottom said.