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Summary

Bomgar, a vendor of technology for technical support and privileged access management (PAM), has entered an agreement to acquire BeyondTrust, another PAM vendor that also develops vulnerability management software. Ovum sees a continuing wave of consolidation in PAM, with increasingly muscular competitors emerging to challenge market leader CyberArk.

M&A creates fewer but stronger PAM competitors

Privileged access management is also known variously as privileged account management, privileged identity management (PIM), and privileged user management (PUM). All these names refer to the technology used to manage the identities and access rights of so-called privileged users with access to all, or the most sensitive, areas of an organization's data, such as customer database, payroll systems, product specifications, or health or financial records.

The PAM market was worth over $1bn in 2017 and is growing at around 30% a year, as privileged users become key targets for threat actors. Startups in this space have been joined by major players from vanilla identity and access management (IAM) such as IBM, Oracle, and CA Technologies, sometimes through acquisition. M&A activity has also gone on among smaller players seeking to round out their portfolios. Meanwhile, IBM recently agreed to resell the PAM platform of specialist vendor Thycotic, phasing out its own product as it replaces it in its PAM customer base.

Bomgar entered the PAM market in 2015 by acquiring password management vendor Pitbull Software. In February 2018, it bought Lieberman Software, in existence since the 1970s and a pioneer in the PAM market. In July, it acquired Avecto, a PAM vendor specializing in endpoints. In the meantime, Bomgar, which was already owned by private equity (PE) firm Thoma Bravo, was itself acquired in April by Francisco Partners, another PE firm more focused on corporate engineering (M&A).

BeyondTrust is a well-known brand in PAM and the merged entity will carry that name rather than Bomgar. The combination of the two businesses will make them a more muscular competitor to the market leader, CyberArk, which has been acquiring and enhancing its go-to-market strategy to address the challenges to its position.

Ovum will shortly publish a more detailed report on how the Bomgar/BeyondTrust integration will work in terms of product overlaps and tech roadmaps.

Appendix

Further reading

"IBM adopts Thycotic for privileged account management", INT003-000198 (July 2018)

On the Radar: Thycotic enables security around privilege, IT0022-000965 (May 2017)

Ovum Decision Matrix: Selecting a Privileged Identity Management Solution, 2015–2016, IT0022-

000526 (November 2015)

On the Radar: Bomgar expands into privileged access management, IT0022-000524 (November 2015)

Author

Rik Turner, Principal Analyst, Infrastructure Solutions

rik.turner@ovum.com

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