Q:
Why did Sun acquire Vaau? How will Vaau contribute to Sun's bottom line?
A:
This acquisition is expected to improve Sun's overall competitive position in the identity audit and compliance space by providing Sun with the opportunity to strengthen its foothold in the increasingly important category of Governance Risk & Compliance (GRC). With the acquisition of Vaau, Sun will be able to extend its capabilities to address more robust customer requirements including automation, simplification and business alignment.
Q: How does this acquisition fit into Sun's greater strategies?
A:
The acquisition of Vaau is expected to improve Sun's overall competitive position in the identity audit and compliance space by providing Sun with the opportunity to strengthen its foothold in the increasingly important category of Governance Risk & Compliance (GRC). We believe this acquisition will allow Sun to grow its software business by further strengthening its market-leading Identity Management software portfolio. Moving forward, Sun is actively planning its go-to-market strategy for Vaau and we look forward to offering Vaau products as part of our Identity Management portfolio shortly after close.
Q: What is the market opportunity for this product
A:
Companies are increasingly looking for ways to address GRC in a sustainable and cost-effective way across their entire organizations, and because of this, GRC/access control is no longer just an IT issue, now it is a boardroom issue. Meeting these GRC requirements is becoming an increasingly important focus of business and IT today, and it is estimated that by 2008, worldwide software spending for compliance and governance will be $9.2 Billion (Gartner, 2005).
According to Forrester, the overall size of the worldwide IAM (Identity and Access Management) market - based on software license (including maintenance) and related implementation service revenues - reached approximately $2.6 billion in 2006, with 48% of revenues going to software and 52% going to the services that IAM product vendors and system integrators (SIs) delivered. By 2014, total revenues will reach $12.3 billion, with 57% going to software and 43% going to services. The compound annual growth rate (CAGR) of the entire IAM market during the 2006 to 2014 period will be 21.6%. (Forrester: Identity Management Market Forecast: 2007 To 2014, Provisioning Will Extend Its Dominance Of Market Revenues, by Andras Cser, Jonathan Penn, February 6, 2008) Q: How much did Sun pay for Vaau?
A:
The payment terms of the agreement were not disclosed, as the transaction is immaterial with respect to Sun's earnings per share.
Q: Will Sun incur any charges as a result of this acquisition?
A:
The payment terms of the agreement were not disclosed, as the transaction is immaterial with respect to Sun's earnings per share.
Q: Did Sun hire Vaau's employees?
A:
Yes, with the close of the acquisition, most of Vaau's team will join Sun, bringing together Sun's Identity Management experts with Vaau's Enterprise Role Management experts, enhancing Sun's overall competitive advantage in the identity audit and compliance space.
Q: Will there be a new brand name for the Vaau technology?
A:
Yes, Vaau's RBACx product will be called the Sun Java System Role Manager.
Q: When do you envision the new product(s) bringing revenues into Sun?
A:
Sun is actively planning its go-to-market strategy and is not commenting on expected benefits at this time. However, we look forward to sharing more on this front in the near future.
Q: How will the Vaau business be integrated into Sun?
A:
Vaau's product portfolio is scheduled to become part of Sun's Identity Management product portfolio, and will become price listed shortly thereafter. We expect to see product availability for resale in Q1 of the 2008 calendar year (Sun's fiscal Q3 2008).
Q: Will Sun be making other acquisitions in this space?
A:
Sun does not comment on future plans or speculation concerning potential acquisitions. What we can tell you is that Sun is better positioned than at any point in its 25 year history to service the needs of customers and Sun will continue to look for acquisitions and other strategic investments that complement Sun's strategic and financial objectives.
Q: Is this a new or established market, or new category for Sun? How will this move strengthen Sun's position in the market?
A:
The acquisition of Vaau is expected to improve Sun's overall competitive position in the identity audit and compliance space by providing Sun with the opportunity to strengthen its foothold in the increasingly important category of Governance Risk & Compliance (GRC). We believe this acquisition will allow Sun to grow its software business by further strengthening its market-leading Identity Management software portfolio, and help to re-establish Sun as the leader in Identity Audit and Compliance.
Q: Will Sun's partners be able to sell the Vaau products?
A:
es. Just like Sun's identity management portfolio, Vaau's product portfolio is scheduled to become part of the mid level software platform within the Sun Partner Advantage program. These products will become price listed shortly after close.
Q: When should we expect to see new products/services as a result of this transaction?
A:
Sun is actively planning the integration of Vaau's products into its Identity Management portfolio, and we expect these products to become price listed shortly after close.
Q: What will happen to existing customers?
A:
Sun and Vaau are working together to migrate most of Vaau's existing customer agreements to Sun. Sun intends to honor all existing Vaau support contracts.
Q: Vaau recently announced the release of RBAC v4. Can you tell me a bit about the new version and how it will be incorporated into Sun's portfolio?
A:
Sun is actively planning the integration of RBAC v4 into its Identity Management portfolio, and we expect the product to become price listed shortly after close.
The following list of features outlines the enhancements of the new product version, RBACx, v4: Enhanced Graphical User Interface
Enhanced Role Management Features
Enhanced Glossary
Enhanced APIs
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