Government and Industry Regulations Fuel the Need for Encryption of Computer-Based Data within the Enterprise, Finds IDC

FRAMINGHAM, MA – DECEMBER 5, 2006 – Data encryption is set to go mainstream as governments and industry organizations hope to stem the flow of lost, stolen, or misused information hemorrhaging from today's enterprises. Once reserved for protecting matters of national security, data encryption is expanding to become a viable option for combating emerging threats against computer-based data and helping companies comply with government and industry regulations.

According to new survey findings from IDC, 56% of respondents believe encryption should be implemented at the storage system software layer. "For information to be valuable, it must be easily accessible at all times," said Charles Kolodgy, director of IDC's Security Products and Services group. "The protection and preservation of data is critical, and encryption at the storage layer helps ensure protection while maintaining accessibility." Some remain skeptical, however, as 41% of respondents cited confidence of recovery of encrypted data as a barrier to the deployment of storage encryption solutions.

Additional key findings from the IDC survey include:

— In the future many will expect encryption to be a feature of removable media

— Cost isn't a large barrier for those who decide to use encryption

— Vendors see encryption technology as mature and ready for primetime, but users remain wary

This study, Data Protection Multiclient Study: Data Encryption Option, provides findings from over a dozen in-depth interviews with IT and storage executives and practitioners, providing detailed information on the need and existing usage of storage encryption. In addition, IDC conducted Web-based surveys of over 400 IT and storage professionals at small, medium, and large organizations. The study addresses questions about how companies view storage encryption and why they have or have not chosen to employ It. It also examines where storage encryption is being implemented, how much encryption is being used, and what concerns are associated with the adoption of storage encryption.

To purchase this multiclient study, please contact IDC Sales at 508-988-7988 or sales@idc.com.

About IDC

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. Over 850 IDC analysts in 50 countries provide global, regional, and local expertise on technology and industry opportunities and trends. For more than 42 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com .

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