Feeds

Security Biz: the double edged sword

Boom/Bust

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

The security industry is in a state of a flux. While companies like Baltimore and iDefense are suffering self-evident problems, the rest of the market appears to be buoyant.

IDC reported last week that the security industry looks set for a bumper few years and with the UK's Confederation of British Industry stating that two thirds of companies fell victim to cyber crime last year, it seems that security companies could be set to boom.

According to IDC, the security market is going to grow from strength from strength over the next four years, rising at a compound annual rate of 23, until it tops more than $14 billion in 2005. This isn't just for virus protection either -which seems to be an increasingly virulent threat - but for all sectors of the security industry: firewalls, encryption, authentication authorisation and administration.

Evidence of the boom can be traced as early as last year when, again, all sectors experienced considerable growth. Antivirus software turned in a healthy 25 per cent growth figure while the firewall segment managed an astonishing 42 per cent growth in 2000. Internet security, benefiting from the surge in ecommerce activity throughout 2000, also managed considerable gains, rising 33 per cent to $5.1 billion.

'The question that vendors will be asking themselves however is where do I need to be investing?'

The problem with the security market right now however is that it is, as IDC says, a 'double-edged sword.' Whilst Baltimore has seen the bottom fall out of its market and iDefense has filed for Chapter 11, others in the market are booming.

Brian Burke, senior research analyst in IDC's Internet Security program, said: "On the one hand, it [the economic climate] is forcing companies to reduce spending. On the other hand, it's forcing companies to look for ways to cut costs, become more security proficient, and build trusted relationships.' And obviously that's where security products can help.

The question that vendors will asking themselves however is "where do I need to be investing?" According to IDC, the most popular areas of security over the next few years are going to be the 3As, authentication, authorisation, and administration. This segment alone is expected to surge beyond the $9 billion mark by 2005, buoyed by a compound annual growth rate over the next four years of 28 per cent.

© IT-Analysis.com. All rights reserved.

Beginner's guide to SSL certificates

More from The Register

next story
Russian hackers exploit 'Sandworm' bug 'to spy on NATO, EU PCs'
Fix imminent from Microsoft for Vista, Server 2008, other stuff
FYI: OS X Yosemite's Spotlight tells Apple EVERYTHING you're looking for
It's on by default – didn't you read the small print?
Microsoft pulls another dodgy patch
Redmond makes a hash of hashing add-on
'LulzSec leader Aush0k' found to be naughty boy not worthy of jail
15 months home detention leaves egg on feds' faces as they grab for more power
Kill off SSL 3.0 NOW: HTTPS savaged by vicious POODLE
Pull it out ASAP, it is SWISS CHEESE
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
China is ALREADY spying on Apple iCloud users, watchdog claims
Attack harvests users' info at iPhone 6 launch
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.