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Technology Stocks : Ascend Communications (ASND)
ASND 196.81-4.9%Dec 9 3:59 PM EST

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To: djane who wrote (47489)5/25/1998 4:25:00 PM
From: djane   of 61433
 
forbes article. Digital security: The next generation [Info on VPN companies.]

By Om Malik

For today's corporations keeping the
company networks safe is a top priority.

Just when companies think that they have total
digital security, there is another hack attack, or a
network brought to its knees by a prankster. Call
it the digital battle between the good and the evil.

As long as this battle continues, expect
corporations to keep spending billions of dollars
on new software and methods to keep
troublemakers at bay. San Jose, Calif.-based
market research firm Dataquest expects that by
year 2000, U.S. corporations will spend $13
billion annually on computer security, up from
$6.3 billion this year.

Much of this money is going to be spent on some
cutting-edge technologies like virtual private
networks, smart cards and encryption, which
have recently become popular with corporations.


Forbes Digital Media takes a look at these new
sheriffs in town:

Virtual private networks (VPN)

Networking giant Bay Networks' (BAY) decision
to buy small startup New Oak Communications
for $156 million in January gave the emerging
virtual private networks (VPN) technology the
validation it so sorely needed.

VPN, according to analysts, is the next evolution
of firewall technology (see "A security software
glossary") currently being deployed by the
corporations. But what is VPN?

VPN is a blend of firewall and encryption
technology. There are two firewalls--one on
either end of the network connection, and
encrypted data flows between these two points.

VPN technology allows remote users to get onto
their corporate network over the Internet instead
of dialing directly into the network. For example,
John Doe in Idaho can dial his local Internet
access provider and by using special software
send and get data from his New York
headquarters. It saves his company money, as
there are no network charges, no long distance
telephone bills and no special hardware.

Much safer than traditional firewall and remote
access software, Infonetics Research, a San Jose,
Calif.-based research firm expects the VPN
market to grow from $15 million in 1997 to $1.2
billion by year 2001.

VPN players: Radguard, RedCreek, Isolation
Systems, Axent Technologies, Bay Networks


Smart cards

Authentication is one of the new ways companies
are likely to tackle some of the digital security
issues in coming years. Authentication, as the
word suggests, is the way people identify
themselves.

In real life, we use a driver's license, social
security number, passport or business card.
Things are not terribly different in cyberspace,
although people are likely to use smart cards.

A smart card is a small plastic card that looks
exactly like a credit card, and has a central
processing unit (CPU) chip embedded in it. It has
its own operating system, which is why it can
perform multiple functions.

One company that is really pushing the envelope
when it comes to smart cards, is Sunnyvale,
Calif.-based Cylink Corp. (CYLK). Last month,
the company introduced two card products:
Private Card, its smart card, and Private Safe, a
smart card reader.

Private Safe card reader connects between a PC
and its keyboard. A user can simply insert the
smart card into the reader and log on to the PC.
Without a smart card, access to the PC is not
possible, as private key and digital signatures are
generated on the chip itself, thus protecting those
functions from attack via a network or the PC.

The next step in the evolution of the authentication
process is called "biometrics," and will involve
voice activation or fingerprint scanning. For
example, if you want to log on to your company's
network, just place your hand on a special screen
and you will be allowed access if your fingerprints
match. Or in case of voice activation, you talk to
the computer and it recognizes your voice.
Sounds like science fiction!

Smart card players: Cylink, Siemens AG,
Motorola

New virus busters

If you think that the current generation of antivirus
software is enough to protect your computer from
virus attacks, you could not be more wrong.
There is a new family of viruses circulating around
the computer networks. These next-generation
viruses are called "vandals" and are essentially
mini-applications, which are written in software
languages like Java and ActiveX. They enter the
network via E-mail or via software downloaded
from the Internet.

Even though the damage caused by these vandals
is of the same magnitude as traditional viruses,
they are more deadly because the end-user in not
aware of their existence.

Antivandal players: E-Safe, Finjan, Security-7

Related stories:
Low tech spooks (Forbes Digital Tool, Apr. 3)
Safety first (Forbes Digital Tool, May 20)
Smart cards (Forbes Digital Tool, Nov. 14,
1997)





| top |

See also:

Network protection
How companies make their networks secure.

A security software glossary
Making sense of the jargon.

Who's doing what?
A Forbes Digital Tool guide to the top names in each
security software category.

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