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Market Trends

Several significant trends are driving the authentication market, disrupting traditional industry dynamics, and influencing authentication technology decisions.

Expansion Trends Pressure Trends
   
   
Growth in Number of Internet Users
Expanding Mobile Workforce
Increasing Use of Web for Business Enablement
Mobile Devices Proliferation
Growth in The Number of Businesses
            Regulatory Compliance
            Heightened Identity & Data Theft
            Need to Protect Intellectual Property

 

Growth in number of Internet Users:

The Internet has developed into a reliable and widespread communications medium, enabling nearly a billion people to obtain and share content and information and conduct business transactions electronically at any time and with easier access. The number of Internet users worldwide has grown from approximately 390 million in 2001 to 824 million in 2005 and is expected to reach 1.3 billion users by 2009, according to International Data Corporation. (Source: IDC Oct’05)

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Expanding Mobile Workforce:

The number of remote and mobile workers continues to grow as improving mobile and remote-access technologies make it possible for an increasing number of employees to be productive outside the typical office environment. As mobility becomes a strategic force worldwide, IDC expects the global mobile worker population to increase from more than 650 million in 2004, to more than 850 million in 2009, representing more than one-quarter of the worldwide workforce. (Source: IDC Oct’05)

In-Stat estimates the total number of remote workers supported by US enterprises to be approximately 101 million in 2006. (Source: In-Stat, Nov’06)

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Increasing Use of Web for Business Enablement

The marketing capability, efficacy and the widespread adoption and consumer/business acceptance of the Internet as a transaction and communications medium is driving the business focus toward networked business services and collaboration with open systems to partners, suppliers, and customers (B2B, B2C, ASPs, and Web 2.0).

As, nearly 16% of the world's population is talking, learning, and buying on the Internet, businesses generated over $295 billion in revenue from e-commerce sales to consumers in 2004. IDC further estimates that worldwide consumer online spending will grow to $759 billion in 2007. IDC also estimates worldwide B2B e-commerce at 3.4 Trillion. (Source: IDC Oct ’05/Mar ’04, Forbes ‘05)

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Mobile Devices Proliferation

The global wireless industry has grown significantly as wireless services have become increasingly available and affordable, driving the proliferation of mobile devices. According to Forrester Research, there are 1.5 billion mobile telecom users today, a quarter of the world’s population. A further 3.5 billion people live within the coverage area of a mobile cellular network. Such proliferation along with the deployment of high speed wireless networks are creating more demand for wireless content, entertainment services, as well as mobile banking, trading, and payments. (Source: Forrester, Feb’05)

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Growth in The Number of Businesses

According to IDC 2005 forecasts, there are an estimated 8 thousand large enterprise firms with 1000+ employees; 93 thousand mid-size business firms with 100-999 employees; 8 million small business firms with less then 100 employees, and 20 million small office, home office firms with less then 10 employees, in United States. (Source: IDC May’05)

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Need to Protect Intellectual Property

The intellectual property of an organization is one of the key assets and competitive differentiators that need to be protected and secured. With enterprises extending their businesses by concentrating on core competencies and partnering or outsourcing non core functions, more sensitive information, secrets, and ideas are leaving the four walls. According to the FBI/CSI 2006 Survey, theft of intellectual property is in the top four greatest sources of financial loss and is the top three most critical computer security issues in the next two years. (Source: FBI/CSI, July’06)

According to Ponemon Institute, the four types of data considered to be most at risk in an organization are: intellectual property, business confidential information, customer and consumer data, and employee data. The research ranked the most serious kinds of data breach to involve the loss or theft of intellectual property and business confidential information. The types of intellectual property believed to be most at risk include electronic spreadsheets, competitive intelligence and source code. The types of business confidential information believed to be most at risk include non-public financial statements, documents, accounting reports and budgets or forecasts. (Ponemon Institute, Aug’06)