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To: steve who wrote (19385)12/11/2000 8:25:05 AM
From: steve  Read Replies (1) | Respond to of 26039
 
Biometrics is fun says Frost & Sullivan!!!

BW0072 DEC 11,2000 5:00 PACIFIC 08:00 EASTERN

( BW)(CA-FROST-&-SULLIVAN) Frost & Sullivan Research Reveals Biometrics Is Not
Mission Impossible

Business Editors & High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 11, 2000--We have all seen it in the movies. A person needing
access to a computer network uses a fingerprint, his voice or an eye scan to identify himself.
Well, the movies have become reality. Biometrics, a method of authentication based on physical or
behavioral characteristics, is projected to become much more prolific in the coming decade as our
increasingly paperless society looks for a quick, secure way to identify people.
New strategic market research from Frost & Sullivan (www.frost.com) reveals that the "U.S. User
Authentication Device Markets" generated revenues of over $200 million in 1999. Frost & Sullivan predicts
that figure will reach $2.6 billion by 2006.
This industry is composed of hardware tokens, software tokens, and biometrics. All are used for
authentication. The hardware token segments are the most widely used authentication devices.
"Growth in this market will be spurred largely by the ability of smart cards and USB tokens to store
digital certificates used in PKI," says Frost & Sullivan industry expert Jason Wright. "The hardware token
market is expected to mirror the growth of the PKI market in the U.S."
While the hardware token segment controls the lions' share of the market, the biometrics segment is the
most interesting. The biometric market had been virtually non-existent until 1999, but it is expected to
flourish over the next several years as it becomes a mainstream solution. Industry-wide standards are
being set, thanks to the efforts of Microsoft and the International Biometric Industry Association (IBIA),
BioAPI consortium. Microsoft is integrating biometric authentication technology into its next version of
Windows, thereby validating the technology.
"The Microsoft implementation conveys to the public that this technology is ready for widespread
adoption," says Wright. "Many IT administrators have dismissed the idea of biometric solutions as not being
a viable technology or have been hesitant to involve themselves in a technology that has not achieved
mainstream status. For many, the Microsoft move will alleviate those apprehensions."
Yet there are other security solutions less expensive than biometrics. Why wouldn't security
administrators go with a cheaper alternative? Wright believes that the use of biometric solutions will
increase because of the sheer fun of using the equipment.
"While this aspect of the technology is seldom considered, the fact is users enjoy using biometric
authentication devices," says Wright. "Since the technology is viewed as cutting-edge and so simple to use,
biometric products definitely appeal to users. The allure of using biometric equipment will help vendors
win contracts for implementation over other security technologies."
The difficulty involved in deceiving a biometric device is what makes this method of authentication so
secure. In the past, however, price of equipment has been a significant hurdle. The declining cost of these
solutions eliminates a critical barrier to market penetration.
"Fingerprint scanners can now be purchased for less than $100. Crossing the $100 mark has enormous
positive implications in the psyche of buyers...," says Wright.
Frost & Sullivan presents the 2000 Marketing Engineering Awards to companies that have worked hard
to make a positive contribution to the U.S. User Authentication device industry. The Brand Awareness
Development Award is presented to RSA Security (RSAS). The Market Penetration Award goes to
CryptoCard. The Product Innovation Award is given to eTrue (formerly Miros). I/O Software is the
recipient of the Technology Innovation Award.
Companies that participated within this industry include: Access Controls; ActivCard; Aladdin
Knowledge Systems; American Biometric Company; Authen Tec; Axent Technologies; Biometric Access
Corp. (BAC); Biometric ID (BII); Biometric Security Corp.; BioNetrix; Blockade; CryptoCard; Cybernetic;
Cylink; DataKey; Digital Persona; Electro-Optical Systems; eTrue; Eutron; First Access; Gemplus; IBM; I/O
Software; Identix; IriScan; Key Tronic; Keyware Technologies; Leehmah Datacom; Litronic; Mytec; National
Registry; Net Nanny Software; Neurodynamics; Parkinson Howe Ltd.; Precise Biometrics; RSA; Rainbow
Technologies; SAC Technologies; SafLink; Secugen; Secure Computing; Schlumberger; Shuttle Technology;
Sony; SpeakEZ (T-Ntix); Spyrus; Thompson SGS; Thorne Secure Science; Unisys; Utimaco; V-One;
Veridicom; VeriVoice; Visage; Vista Imaging; Visionics; Who?Vision; VASCO, and ZaphyrBiometrics.
Frost & Sullivan, which is headquartered in San Jose, Calif., is a global leader in international strategic
market consulting and training. Frost & Sullivan's industry experts monitor the IT industry for market
trends, market measurements and strategies. This ongoing research is used to complement the Network
Security Subscription, which includes studies on the U.S Digital Certificate Markets and the U.S. Firewalls
Market. Executive summaries and interviews are available to the press.
Along with publishing in-depth strategic market consulting research, Frost & Sullivan also provides
custom consulting needs to a variety of national and international companies.

"U.S. User Authentication Device Markets"

Report: 7418-74 Date: November 2000

--30--dw/sa*

CONTACT: Frost & Sullivan, San Antonio
Kristi Grier, 210/247-2403
kgrier@frost.com
frost.com

KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS HARDWARE INTERNET
NETWORKING SOFTWARE PUBLISHING

sf-web1.businesswire.com

steve