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Technology Stocks : Secure Computing - Integrated Network Security -- Ignore unavailable to you. Want to Upgrade?

To: Verona who wrote (873)	12/28/1999 7:40:00 PM
From: Charly	Read Replies (1) \| Respond to of 930

Shackling Online Hackers: Encryption Applications Provide Security Solutions, Growth Opportunities SAN ANTONIO, Dec 20, 1999 (BUSINESS WIRE) -- Data security is no longer a speculative concern, but an immediate necessity. Burgeoning e-commerce opportunities, demonstrable ROI for companies using security networks and the fear of intellectual property theft are driving U.S. encryption application market growth. According to new Frost & Sullivan (www.frost.com) strategic research, "U.S. Encryption Applications Markets," total market revenues nearly doubled from $335.5 million in 1998 to $669.8 million in 1999. Frost & Sullivan industry experts predict revenues will grow exponentially throughout the forecast period (1997-2005). Although virtual private network (VPN) and e-mail encryption solutions amount to substantial portions of industry revenues, public key infrastructure (PKI)--necessitated by continued e-commerce business capabilities and global acceptance of electronic signatures--will alleviate many current and future consumer data security anxieties. Consequently, PKI will both catalyze and carry growth into and well beyond the new millennium. "Currently, limited proof of tangible financial benefits from deploying security applications hinder substantial spending for encryption," observes Frost & Sullivan information technology analyst Kumar Gangwani. This growing encryption financial uncertainty is complicated. "Because security products are difficult to use, even for technologically knowledgeable people, encryption applications lack ubiquitous appeal," Gangwani says. "To alleviate product ignorance, encryption application vendors must undoubtedly improve consumer security awareness." "As if these issues were not enough, Y2K paranoia is restraining market growth, as many organization have elected to defer spending until after the new millennium," Gangwani says. Although Y2K fears loom as short-term roadblocks, increased penetration from large, financially endowed companies presents serious concerns. "Entry of networking giants into this already fragmented marketplace can threaten the existence of smaller VPN vendors," affirms Gangwani. To parlay industry opportunities while minimizing market obstacles, participating companies must corroborate with competitors to develop unified encryption standards and circumvent high R&D costs by cross-partnering with other vendors while differentiating their product line through brand name awareness. "U.S. Encryption Applications" explicates market drivers and restraints, provides revenue forecasts and market share breakdowns and dispenses strategic recommendations. Frost & Sullivan presents 1999 Market Engineering Awards to companies that have worked hard to make a positive contribution to the encryption application industry. The Customer Focus Award is presented to Baltimore Technologies. The Sales Strategy Award is given to Check Point Technologies, Inc. The Marketing Strategy Award is awarded to IRE, Inc., and Turnaround Strategy Award is presented to Cybertrust. Frost & Sullivan has identified the following companies as market participants for the purposes of this study: Aventail Corporation; AXENT Technologies, Inc.; Broken Rhythm Solutions (Maedae Enterprises DBA); Check Point Software Technologies, Inc.; Cisco Systems; Compaq Computer Corporation; CyberGuard Corporation; Cybertrust-Division of GTE; CYLINK Corporation; Data Fellows, Inc.; Elementrix Technologies, Ltd.; Entegrity Solutions Corporation; Entrust Technologies; Frontier Technologies Corporation; IBM Communications Systems/Internet; Information Security Corporation; Information Resource Engineering (IRE), Inc.; Lockheed Martin Corporation; Microsoft Corporation; SLMsoft.com; Network Associates; Nortel Networks; RedCreek Communications, Inc.; RSA Security, Inc.; Secure Computing Corporation; Storage Tech Network Systems Group; Sun Microsystems, Inc.; Syndata Technologies, Inc.; TenFour US, Inc.; Timestep Corporation; Toshiba America Information Systems, Inc.; Utimaco Safeware AG; VeriSign, Inc.; V-ONE Corporation; VPNet Technologies, Inc.; Xcert Software, Inc.; and Worldtalk Corporation. Frost & Sullivan is an international marketing consulting and training company that monitors the information technology industry for market trends, market measurements and strategies. This ongoing research complements a series of research publications such as No. 5930-74 "U.S. Network Security Markets: Firewalls" and supports participants with customized consulting needs. Free executive summaries are available to the press. U.S. Encryption Application Markets Report: 7185-74 Publication Date: December 1999 Price: $3,450 Copyright (C) 1999 Business Wire. All rights reserved. Distributed via COMTEX. CONTACT: Frost & Sullivan, San Antonio Jennifer Minx, 210/348-1015 jminx@frost.com frost.com WEB PAGE: businesswire.com GEOGRAPHY: TEXAS INDUSTRY CODE: E-COMMERCE COMPUTERS/ELECTRONICS HARDWARE SOFTWARE Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page.