Microsoft Acquisition of FrontBridge Validates & Encourages Hosted Filtering

On July 20, Microsoft announced it will acquire Frontbridge Technologies. See http://www.microsoft.com/presspass/press/2005/jul05/07-20FrontBridgePR.mspx.

FrontBridge offers a hosted email filtering service. You route your email though FrontBridge, and the service mainly cleans out spam and viruses. It can also encrypt and archive email. FrontBridge is one of the leaders in this field; its main competitors are MessageLabs and Postini. Terms of the deal weren’t disclosed; we guess a price of perhaps $150M.

One thing that’s important about this deal is that it validates the hosted filtering space. Hitherto, many organizations have been resistant to allowing a third party to take over email filtering, often for security reasons. Microsoft’s acquisition will allay such fears. It will bolster revenues of all the hosted services.

Author: David Ferris

Post a comment

You must be logged in to post a comment. To comment, first join our community.