[ISN] IDC: Security software to total billions by 2004

From: William Knowles (wkat_private)
Date: Thu Apr 19 2001 - 02:21:35 PDT

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    By Sam Costello
    Wednesday, Apr. 18, 2001
    TWO REPORTS FROM market research firm International Data Corp. (IDC)
    this week forecast that two different sectors of the market for
    corporate network security products will top $1 billion by 2004.
    Intrusion detection and vulnerability assessment products will break
    through the $1-billion-a-year revenue mark by 2003, according to a
    report released Wednesday by IDC, while the three A's --
    authentication, authorization, and administration -- will top $7.7
    billion by 2004, according to a study published Monday. (IDC is owned
    by International Data Group Inc., the parent company of the IDG News
    Intrusion detection and vulnerability assessment software are already
    bring in revenue closing in on $1 billion, with the market likely to
    experience a compound annual growth rate (CAGR) of 34 percent from
    1999 to 2004, the report said. By 2004, vulnerability assessment tools
    will account for 54 percent of the revenue in that part of the
    security market, with intrusion detection making up the difference.
    Intrusion detection software, however, will outgrow vulnerability
    assessment tools in CAGR, 37 percent vs. 32 percent over the same
    The three A's will grow from $2.8 billion in 2000 to $7.7 billion,
    thanks to a CAGR of 28 percent. Authentication, a field that covers
    secure transactions, digital certificates, and PKI (public key
    infrastructure), will be a driving force in the growth of the market,
    with 2004 revenue ringing in at $1.7 billion, Framingham, Mass.-based
    IDC said.
    Interestingly, the growth in the intrusion detection and vulnerability
    assessment market will not be driven by fears of security breaches but
    rather by a desire by corporate IT managers to control and be aware of
    the status of their networks, the study said. The three A's, on the
    other hand, will grow due to their importance in securing e-business
    transactions and partnerships.
    "Communications without intelligence is noise;  Intelligence
    without communications is irrelevant." Gen Alfred. M. Gray, USMC
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