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San Jose, Calif. – March 27, 2003 – The encryption applications market is receiving a huge boost from organizations’ escalating security concerns due to the increasing adoption of the Internet for business-to-business transactions.
“Increased research and development funding, venture capital, and investments in security infrastructure as well as new opportunities and applications are catapulting this market into a major growth area and attracting an increasing number of vendors eager to exploit these revenue opportunities,” notes Technical Insights Analyst James Smith.
In particular, public key infrastructure (PKI) technology, which provides a variety of crucial enabling capacities for electronic business processes, is expected to experience substantial revenue growth, as e-commerce becomes a mainstay of business-to-business transactions.
Virtual private networks (VPNs) and e-mail encryption applications also promise considerable opportunities to vendors. The ability to safely transfer sensitive data over the Internet, coupled with direct cost savings, is set to create increased demand for these technologies.
However, with the cost factor acting as a major deterrent to many organizations, vendors will have to convince clients about the financial returns from securing networks to eliminate marketplace resistance and facilitate increased sales.
Adds Smith, “Standards interoperability is critical to the success of the encryption applications market. Until this is achieved, market growth will be prevented from reaching its full potential.”
In the VPN market, the Internet Protocol (IP) security standard is being helped by major projects such as the automotive network exchange extranet project. However, it remains unclear to what extent this standard has succeeded in ensuring interoperability.
“Standardizing on IP security will enable multivendor interoperability that will allow the market to explode,” says Smith.
Support of the secure multipurpose Internet mail extensions standard by major e-mail client and browser companies is helping to establish an approved standard in the e-mail encryption market.
In the PKI market, emerging standards such as on-line certificate status protocols, likely to gain recognition in two years, can help address multiple issues regarding certificate revocation and management of revocation on a large scale.
Spurring market growth further will be advanced forms of protection such as intrusion detection systems, tools that protect specific applications on corporate networks, and vulnerability-assessment software and services. Companies are expected to increasingly add intrusion detection systems to their security infrastructure to monitor inbound and outbound network activity.
New analysis by Technical Insights, a business unit of Frost & Sullivan (www.Technical-Insights.frost.com), Encryption Technology and Information Security, discusses important trends and developments, advances in research, technology breakthroughs, and emerging applications in different encryption and information security segments.
Technical Insights will hold a conference call at 3:00 p.m. (EST)/ 12:00 p.m. (PST) on April 3, 2003 to provide a summary and analysis of the latest developments in encryption technology and information security. Those interested in participating in the call should send an email to Julia Paulson at jpaulson@frost.com with the following information for registration:
Full name, Company Name, Title, Contact Tel Number, Contact Fax Number, Email. Upon receipt of the above information, a confirmation/pass code for the live briefing will be emailed to you.
Frost & Sullivan is a global leader in strategic growth consulting. Acquired by Frost & Sullivan, Technical Insights is an international technology analysis business that produces a variety of technical news alerts, newsletters, and reports. This ongoing growth opportunity analysis of encryption and other information security technologies is covered in Inside R&D Alert, a Technical Insights subscription service. Technical Insights and Frost & Sullivan also offer custom growth consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.
Encryption Technology and Information Security
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