IDC Forecasts Worldwide Revenues for Security 3As Software Will Reach $7.7 Billion in 2004

FRAMINGHAM, MA – April 16, 2001 – Internet security has made a complete about-face. Once designed to keep people out of corporate networks, security features are now enabling enterprises to open their internal networks, servers, applications, and content to external access via the Internet. This enablement is opening large market opportunities for security authentication, authorization, and administration (3As), making it the largest and fastest-growing segment of the Internet security software market. According to IDC, worldwide revenues will accelerate at a compound annual growth rate (CAGR) of 28%, from $2.8 billion in 2000 to $7.7 billion in 2004.

 

"Security authentication, authorization, and administration are the keys to ebusiness enablement," said Brian Burke, analyst for IDC’s Internet Security program. "No longer viewed as just an insurance policy, 3As are a positive infrastructure element that play a vital role in building trusted relationships with customers, partners, suppliers, and channels. These relationships will produce higher transaction rates with greater scalability, lower costs per transaction, and high-value personalized services."

According to IDC, authentication will play a key role in the growth of the 3A software market, with revenues increasing at a CAGR of 32%, from $562 million in 2000 to $1.7 billion in 2004. "Strong authentication is the backbone to secure transactions, and PKI and digital certificates are emerging as the preferred enablers of strong authentication for a wide range of ebusiness applications," Burke said. "Correctly leveraged, PKI technology can improve access to and trust in ebusinesses’ efforts, which ultimately boosts business."

IDC believes the major advantages of 3As are they enable ebusinesses to expand their customer bases, increase online transactions, and grow revenue at double-digit rates while keeping cost growth at single-digit levels.

IDC’s recently published bulletin Worldwide Security 3As Software Market Forecast and Analysis, 2001-–2004: Authentication, Authorization, and Administration Accelerate eBusiness Enablement (IDC #B24379) examines the market opportunity for the 3As software market and looks at how this market will grow. To purchase this bulletin, contact Cheryl Toffel at 1-800-343-4952, extension 4389, or at ctoffel@idc.com.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world's leading IT media, research and exposition company.

 

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