ArcSight's announcement of their IPO filing is interesting news indeed, especially since this is the first look at actual revenues for any of the players in the SIM space (the other liquidity events were acquisitions, so we never really knew the sales revenues). ArcSights' 2007 revenue (through 4/07) was an impressive $69.8M, one third of which was services, and its profits were just a little below the break even point. These numbers tell a nice story of course. What's not clear is how these numbers align with IDC's numbers and the claim that ArcSight has the largest market share in the SIM space. IDC's 2006 estimate for SIM software revenues was $379.8M which, according to our back of the envelope calculation, turns out to be an 18% market share for ArcSight. So if 18% is the market share leading number, then there must be a long tail of vendors in the space doing a pittance. To keep track of the liquidity events, we thought we'd bring out our list deals in the SIM space so far. As you can see from the table below, ArcSight will be the first in the group to ring the IPO bell.
SIM Vendor |
Liquidity Event |
Date |
Amount |
Protego |
Acquired -- Cisco |
12/20/04 |
$65M |
GuardedNet |
Acquired -- Micromuse (Now IBM) |
7/1/05 |
$16.2M |
E-Security |
Acquired -- Novell |
4/19/06 |
$72M |
Network Intelligence |
Acquired -- EMC |
9/18/06 |
$175M |
ArcSight |
Filed IPO |
9/11/07 |
??? |
Total |
|
|
$328M++ |
