Question

Using Trigeorgis terminology, what real option type did IBM most closely display with the acquisition of ISS (Internet Security System)? What IBM oral or written statements support the type classification?

Answer 1

What real option type did IBM most closely display with the acquisition of ISS (Internet Security System)?

IBM Corporation said Wednesday it will spend $1.3 billion in cash to acquire Internet Security Systems Inc., which performs network monitoring and analysis services for companies.

The deal values ISS at $28 a share, an 8 percent premium to ISS’s close at $26 on Tuesday on the Nasdaq Stock Market. If the acquisition is approved by shareholders, the companies expect it to close in the fourth quarter.

Armonk, N.Y.-based IBM has now picked up three public companies this month alone. Two weeks ago it reached a pact to buy document-management software provider FileNet Corp. for $1.6 billion. On Aug. 3, Big Blue agreed to spend $740 million for MRO Software Inc., which helps industrial companies track physical assets.

Buying ISS could bolster Big Blue’s ability to take on what it calls “managed security services” for its business customers. Internet Security System helps guard against data theft and other problems with automated monitoring products and with technical consultants, who now will be part of IBM’s vast services arm.

The deal also should help that unit with its stated goal of improving profit margins by integrating more software and other “repeatable” offerings into services deals, avoiding the need for IBM consultants to create expensive, customized packages anew for each client.

Based in Atlanta, Internet Security System says its 11,000 customers include 17 of the world’s largest banks. The company earned $38.5 million on $330 million in revenue last year; this year’s revenue is expected to surpass $350 million.

ISS’s 1,300 employees are expected to remain with IBM.

What IBM oral or written statements support the type classification?

Data classification describes the sensitivity level of the data and the type of content of the data. Data classification helps catalog members understand the data and identifies the type of data to restrict in data protection policies.

Data assets are classified by these methods:

Asset classifications: Describe the type of sensitive information in the asset, for example, sensitive personal information, personally identifiable information, confidential, or none. You choose the classification of an asset when you add the asset to a governed catalog. You cannot add a classification to assets in ungoverned catalogs. The classification is visible to all catalog members on the Overview page of the asset. The owner of the asset and other asset or catalog members with the Editor or Admin role can change the classification by editing the asset.

Attribute classifiers: Describe the type of content of each column in a relational data asset, for example, city, account number, or credit card number. Attribute classifiers are logically grouped into classifier groups. The attribute classifiers and classifier groups are provided by IBM. In governed catalogs, relational data assets are automatically profiled and assigned attribute classifiers. In ungoverned catalogs, you can choose to profile a relational data asset and choose which attribute classifiers to assign. All catalog users can see the attribute classifiers in the asset preview on the Overview and Profile pages of the asset.

You can include asset classifications and attribute classifiers in data protection policy rules to identify the type of data to control.

You can rename asset classifications and attribute classifiers by associating them with business glossary terms that make sense for your organization.