2020 : Due Diligence Achievement MSSP Acquisition Risk and Integration Assessment

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Conducted thorough due diligence in 2020 for Accenture's acquisition of S-MSS, clearly outlining technical limitations and integration risks. This analysis supported a pivotal strategic decision, contributing to Accenture's achievement of the No. 1 MSS market share.

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https://codepen.io/Yasuyuki-Sakane/pen/PwqYrvd

Project Overview

Duration: December 2019 - February 2020

In 2020, I participated in a due diligence (DD) project regarding Accenture's acquisition of Managed Security Services (MSS) business.

graph LR
    A[Accenture identifies strategic need for MSSP leadership] --> B(DD Request for S-MSS);
    B --> C{Technical Evaluation of S-MSS};
    C -- Legacy Tech, Quality Issues --> D[Identify Limitations & Risks];
    B --> E{Business Evaluation & Synergy Assessment};
    E -- Limited Upsell/Cross-sell --> D;
    D --> F[Recommendation: Maintain Independent Operations];

I clarified the technical limitations and integration risks of S-MSS. As a result, I supported Accenture's strategic decision-making and contributed to market share expansion.

Background: Evolution to MSSP in a Period of Transformation, and the Inside Story of a Strategic Acquisition

On April 30, 2020, Accenture acquired Company S's Managed Security Services (MSS) business from Broadcom, establishing its leadership in the Managed Security Service Provider (MSSP) market.
This acquisition marked a turning point in Accenture's cybersecurity strategy against the backdrop of a rapidly expanding MSS market, estimated to be between $22 billion and $32 billion in size (as of 2020, according to a Gemini report) with an annual growth rate of 8% to 15%.
At the time, Accenture aimed to break away from outdated MSS providers offering uniform services.
Accenture faced quality issues due to its India-centric offshore operations, and strengthening its global threat monitoring capabilities was an urgent priority.
Meanwhile, S-MSS possessed six SOCs (Security Operations Centers) and over 300 experts in the United States, the United Kingdom, India, Australia, Singapore, and Japan, providing 24x7 threat monitoring.
The MSS market was rapidly growing, estimated at $22 billion to $32 billion in 2020 with a growth rate of 8% to 15%, driven by the increasing number of cyber threats and a shortage of in-house security skills. This acquisition presented a prime opportunity for Accenture to leap to market leadership.
Under these circumstances, the presence of S-MSS, with six global locations and over 300 security experts, was recognized as a crucial element for Accenture to quickly surpass competitors such as DELL Secure Works and become an MSSP leader.
At the end of 2019, I received a due diligence request (solely addressed to me) from Accenture's V&A (Valuation & Analytics) department and global headquarters, as this DD would determine the success or failure of this strategic acquisition.