Google to buy Email Security Company

Update : Google said on Monday it has agreed to acquire e-mail security company Postini for $625 million expanding its package of online applications to compete with Microsoft's Office software.

Postini supplies security and encryption services, protecting instant messaging, e-mail and other communications to more than 35,000 businesses and 10 million users worldwide. Google said the deal could enable it provide organizations with more hosted services similar to its Google Apps package, which includes its e-mail service Gmail, Calendar, and Talk, its messaging service.

Google has been expanding its range of services from Web search and advertising to include popular software applications for businesses, such as word processing, putting it in direct competition with Microsoft's Office package of applications.

Google said its Google Apps has been adopted by more than 100,000 businesses to date.

"With this transaction, we're reinforcing our commitment to delivering compelling hosted applications to businesses of all sizes," said Google Chief Executive Eric Schmidt in a statement.

Google said Postini will become a wholly owned subsidiary. The deal is expected to close by the end of the third quarter.

Story Copyright © 2007 Reuters Limited. All rights reserved.

Security Bites Podcast: Skype worm jumps apps

This week, CNET.com's Robert Vamosi features guest security researcher Chris Boyd of FaceTime Communications. Boyd says he has discovered a new Skpe-based worm that manages to jump the fence and infect other IM clients such as Trillian, ICQ, AIM, Yahoo Messenger and MSN Messenger. Boyd also talks about his ongoing work with botnets, in particular one network that appears to be using the botnet's spam profits to buy firearms for a Middle East terrorist cell.

Also on the show, Vamosi talks about Apple's almost-monthly patch cycle, addressing 17 flaws in its latest update, including one affecting specially crafted PDF files, as well as fixes for flaws in Bind, Fetchmail and GNU Screen.

And Vamosi discusses a war in Estonia--online. Up to 128 Estonia-based URLs, including government sites, were victims of denial-of-service attacks over a two-week period. At the height, 58 sites were attacked May 9, 2007, which is Victory Day in Russia, where many of the attacks are thought to originate.