Revulytics Blog

Arxan Defense Systems Acquired by Microsemi

September 15, 2010

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Microsemi Corp., provider of semiconductor products to the medical, military and aerospace industries, today announced that it has acquired Arxan Defense Systems, a provider of anti-tampering and protection solutions for an undisclosed amount (full news here).

Although there is no mention of what is happening with the commercial group Arxan Technologies, Inc., this acquisition underscores a familiar theme about the software protection market: there isn’t a standalone market for protection technology, and embedding protection of software intellectual property remains an OEM opportunity for specific application markets where compliance and standards require protection to compete.

There are other examples of this:

  • Irdeto’s acquisition of Cloakware in 2007 ($72.5M), where protection technology would benefit Irdeto’s push into the content DRM and IPTV market
  • Symantec’s acquisition of Xtreamloc in 2005 ($17M), to protect its consumer-based licensing system

Although V.i. Labs still offers protection solutions for specific enterprise and ISV applications, I believe we were the first to identify this protection market trend and pivot our focus to an alternative strategy that led us to a bigger opportunity for tracking the use and misuse of application software.

Our CodeArmor Intelligence strategy attacks the massive software piracy problem by giving software vendors the ability to turn the tables on their piracy problem and add to their bottom line revenue. This strategy puts us squarely in the SPLM market defined by IDC and forecasted to grow to $2,600M in 2013.

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Victor DeMarines

Post written by Victor DeMarines

Vice President, Products & Strategy at Revulytics

Victor DeMarines brings extensive security product management and marketing experience to Revulytics, where he is responsible for product strategy and direction. He is a frequent speaker and author on topics including piracy, reverse engineering and the protection of intellectual property.