Concerns Increase Security Market

A survey of 300 companies with revenue over $100 million by International Data Corporation found that the companies plan on spending more money on Internet security in the coming years.

Half of the IT executives surveyed said they believe the number of security threats to their organization will increase 20 percent each year. Most of the respondents expressed confidence in their current system security and even more confidence in future system security.

“This confidence is a result of the increasing number of security technologies they expect to implement and the organizational commitment they perceive backing their security requirements,” said Chris Christiansen, IDC’s program director for Internet security.

According to IDC, the worldwide Internet security software market grew 67 percent from 1996 revenues of $1.2 billion to 1997 sales of $2.0 billion, and revenues continued to grow to an estimated $3.1 billion in 1998. IDC also predicts the market to reach $4.2 billion in 1999 and $7.4 billion by 2002. Firewalls, IDC found, will experience the fastest growth, with a 40 percent increase compounded annually through 2002.

By 2002, IDC predicts, antiviral software will be the largest security market, with revenue approaching $3 billion. The average site in the IDC survey reported 81 incidents of virus infections in a 12-month period. The typical virus, the study found, affects 12.3 percent of all users, and each users spends over an hour fixing the problem. It staff members, IDC found, spend almost 80 minutes on each viral infection.

“Antiviral software that reduces or eliminates infections is extremely cost-effective for IT personnel and users alike,” Christiansen said.