Security is not just for insurance purposes any more. To increase profitability, companies need security solutions to expand trusted relationships with their customers, partners, suppliers, and channels. This need is driving the Internet security software market.
According to IDC, its worldwide revenue will jump from less than $4 billion in 1999 to more than $11 billion in 2004.
“The ability to use security technologies to enable greater access to corporate content deepens and stabilizes relationships,” said Brian Burke, an analyst with IDC internet security program. “These trusted relationships yield numerous benefits, including, most importantly, increased revenue and profitability.”
The biggest opportunity in the market is believed to rest with security authentication, authorization, and administration (3A) software. In 1999, this segment was the largest part of the overall market with $2.1 billion in revenue. In addition to being the largest segment, this market will grow faster than any other. Its revenue will increase at a compound annual growth rate of 28% from 1999 to 2004. By comparison, the next-nearest segments - firewall and antivirus - will each increase at 17%.
The success of e-commerce activities and the growth in use of virtual computing architectures are obvious in North America and Western Europe. In 1999 these two regions made up 84% of all Internet security sales. North America produced nearly two-thirds of all Internet security software sales.