Security Market Is Maturing, But Needs Standards
(03/09/98; 5:34 p.m. EST)
By Malcolm Maclachlan, TechWeb
LOS ANGELES -- The computer security market is maturing
just in time, according to experts at Spring Internet World '98
here.
Online business-to-business transactions will grow to $327
billion in 2002, up from $8 billion last year, according to
Deborah Triant, CEO of firewall vendor Check Point Software,
in Redwood City, Calif. To protect those transactions, the
computer security industry must go beyond selling firewall
software to providing long-term service.
"The firewall is no longer a standalone entity," Triant said.
The computer security market is consolidating quickly, finally
producing some big players. Nearly $700 million has been
spent on mergers and acquisitions in the security field so far
this year.
Check Point controls 35 percent of the firewall market,
according to a June 1997 study by Framingham, Mass.-based
International Data, or about four times the market share of its
nearest competitor, Cisco, in San Jose, Calif. Check Point
uses its position to leverage new software, bundling its
FloodGate network management software with the firewall.
FloodGate lets administrators allot a certain percentage of the
network to certain types of traffic.
Because security systems must be designed to accomodate
future developments, Check Point's strategy is to add value
to its existing products with new software and services.
"Security will become a commodity the day hackers become a
commodity," Triant said.
But one security analyst disagrees. Jim Balderston of
Redwood City-based Zona Research said because firewalls
are standards-based to work across multiple systems, it is
difficult for any one technology leader to stay ahead.
Furthermore, companies that control other markets are now
bundling firewalls: Cisco ships them with its routers, while
Sun Microsystems bundles one with the Solaris operating
system.
The goal of most independent security companies,
Balderston said, is to get bought by a larger concern. A few
companies, most notably Check Point and Network
Associates, may remain independent, provided they can stay
ahead of the curve.
Another goal of the security firms is setting standards for
digital certificates and encryption. Once those are in place,
e-commerce, both on an individual and corporate level, will
take off, according to experts.
Paradoxically, the government, whose encryption policy has
been the target of much criticism, could be key to this
process. Ian Curry, director of strategic applications at
Entrust Technologies in Richardson, Texas, pointed to a
recent Utah law that makes digital certificates enforceable in
court. This means someone can't buy something online, then
claim he/she never ordered it.
Paul Lambert, director of technology marketing at Certicom,
based in San Mateo, Calif., said standards will allow
commerce systems to quickly incorporate the new growth
market in computing: handheld devices. People will then be
able to conduct transactions using smart cards, or even
two-way pagers.
Although many security experts see a system of standards
where nearly anyone can issue a digital certificate, Balderston
said large, regulated institutions such as banks are likely to
be the main source of certificates. He added that government
involvement is likely, and could result in a sort of Department
of Motor Vehicles for digital certificates. |
