CLOVERDALE, CA - July 10, 2002 - The security software market will grow from 15% to 20% annually over the next four years to reach approximately $9-bil in 2006.

Security software is the centerpiece of a wide-ranging defensive strategy which encompasses four major areas of spending: 3A’s (authentication, authorization and administration) 35%, encryption software 30%, firewalls 20% and antivirus 15%. 

There are several reasons to expect a strong security software market over the next four years: 

• Costs for security breaches are high. In 2001 virus attacks alone cost industry $15-bil. Add to this the unknown costs for theft of corporate data and financial assets, the entire cost of security violations could have reached as high as $30 to $50-bil.
• The number of pathways for security violations increase as the enterprise allows greater access to data by employees, partners and customers.
• Since Sept. 11 there has been higher potential for terrorist cyberattacks. Government and industry managers realize the threat to the enterprise.
• Business will centralize security management, thus incurring costs of restructuring security services over the next two years, at least.
• Virus outbreaks have been well publicized, increasing the awareness of public, industry, and government.
• Biometrics and other advanced forms of authentication require expensive new infrastructure which depends on reliable and complex software.
• Because of the costs disgruntled employees can inflict upon an organization, measures will need to address internal threats as well as those from outside.

The security software market is invariant to the usual ups and downs of financial and business markets because lax security increases the cost of doing business in the short term and visibly affects the bottom line. The ever present need to tighten security will demand that purchasing security software remains high on to-do lists of government and industry.