Re: Changes to the Info Sec Marketplace ??

From: shawn . moyer (shawn@net-connect.net)
Date: Tue May 01 2001 - 22:21:15 PDT

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    Pete Patamis wrote:
    
    >  Curious to hear some opinions - is this a symptom of a
    > general economic downturn in the tech sector or do
    > you think the info sec industry is starting to undergo some
    > consolidation?
    
    The short answer is: it depends. Certainly some of the InfoSec companies
    will consolidate (ISS bought Network Ice, Axent got swallowed), as the
    entire tech sector is re-evaluated  in a more realistic manner. On the
    upside, some of these accquisitions could also lead to new
    opportunities, as these restructured companies develop new offerings.
    
    On a high level, I think the security market is actually on the rise,
    since part of the re-assessment of what is acceptable business practice
    in the IT world is applying commonsense business practices (sounds fair
    to me), which means being prudent about protecting your assets.
    Personally, I'm actually seeing a heightened awareness of security, and
    a view of this as an operating cost, rather than an afterthought. HIPAA,
    and some similar legislation for the financial sector, should drive this
    as well.
    
    It is true that over the past few months the cool hacker startup jobs
    are a lot harder to find, but I'm finding the Fortune 1000 are actually
    beefing up security staff quite a bit, as they add more B2B, Ecom, and
    telecommuter services, all of which need a lot of InfoSec infrastructure
    and a lot of support. That's unfortunate for me, since I was really
    hoping for another cool hacker startup :) ... but there certainly don't
    appear to be any shortage of opportunities out there.
    
    I think this is what's going on in a lot of IT right now -- Corporate
    America is catching on, and building a lot of these services in-house,
    and staffing accordingly, which is shifting a lot of the jobs away from
    the dot-coms. If security awareness continues to grow, though,
    third-party assessment and audit work should increase as well, so the
    consulting and MSS folks, like @stake and Foundstone (and even the Big
    5) should grow as well.
    
    
    
    
    
    
    --shawn
    
    --
    
    s h a w n   m o y e r
    shawn@net-connect.net
    
    "May the forces of evil become
    confused on the way to your house."
    
                        --George Carlin
    



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