Internet Security Technologies

Internet Security Technologies
for the Changing E-Economy

Tom Franklin

Published August 2002

INTRODUCTION

STUDY GOAL AND OBJECTIVE

The goal and objective of this study is to identify and analyze the many facets of electronic security (e-security) services and solutions, especially as they relate to electronic commerce. Further, the study will quantify revenue growth from the sales of e-security software, hardware and services from 2001 through 2006 and the applicable average annual growth percentages.

In addition, those technologies that contribute to this growth will be identified and examined in detail. This study will indicate the appropriate market shares applicable to the providers of e-security technology.

REASONS FOR DOING THE STUDY

The emergence of electronic commerce as a powerful force in the conduct of consumer and commercial business, as well as the public awareness of the need for "good" security, especially after 9-11, have caused a major focus on security as it relates to e-commerce.

This study will point out trends in the e-security arena and especially in the software technology areas of expertise. In addition, this study will focus on the user market for e-security solutions.

CONTRIBUTION OF THIS STUDY AND FOR WHOM

This study will quantify e-security software spending as well as specialized e-security spending. Further, this study will show the pending components as well as trending developments. The results of this study will be of value to state, local and federal governmental agencies; vendors and suppliers; economists; consultants; investors; the corporate business world; and teachers and students.

SCOPE AND FORMAT

The study will present quantifiable and narrative evidence of the importance of e-security from 2001 through 2006. The report is based upon a modular format to allow readers the full flavor of the e-security phenomenon.

METHODOLOGY

The methodology utilized in this study is as follows:

Ascertain the current state of the industry.

· Determine those software applications and technologies upon which to base qualitative and quantitative analysis.

Determine major providers to be profiled.
Determine market share of providers by software applications and technologies.
Quantify spending from 2001 through 2006 by software applications and technologies.

· Ascertain Average Annual Growth Rate (AAGR) percentages from 2001 through 2006 by software applications and technologies.

Apply the same approach to hardware and services spending.

Note: AAGR percentages in this study are based upon the period 2001 through 2006, unless otherwise stated.

INFORMATION SOURCES

The following sources were utilized in the completion of this study:

Company annual reports and 10K reports.
Company and organization press releases.
Company product literature.
Interviews with company officials of pertinent companies and organizations.
Material from the following organizations:

Biometric Consortium
NSA
FBI
NIST
The Smart Card Alliance
GAO

AUTHOR'S CREDENTIALS

The author has written manuscripts concerning e-commerce, e-payments, smartcards, electronic money, credit and debit cards, as well as the banking industry. Further, the author has consulted on the utilization of electronic payments in the financial services, e-commerce, and transportation areas of concentration. The author also worked for a major financial services corporation in its technology sector at a senior management level.

INTRODUCTION	XXI
STUDY GOAL AND OBJECTIVE	XXI
REASONS FOR DOING THE STUDY	XXI
CONTRIBUTION OF THIS STUDY AND FOR WHOM	XXI
SCOPE AND FORMAT	XXI
METHODOLOGY	XXII
INFORMATION SOURCES	XXII
AUTHOR'S CREDENTIALS	XXIII
RELATED BCC REPORTS	XXIII
BCC ON-LINE SERVICES	XXIII
SUMMARY	XXIV
Summary Table: WORLDWIDE E-SECURITY REVENUE, THROUGH 2006 ($ MILLIONS)	XXV
Summary Figure: WORLDWIDE E-SECURITY REVENUE, 2000, 2001 AND 2006 ($ MILLIONS)	XXV
INDUSTRY OVERVIEW	1
BACKGROUND	1
WHAT IS E-SECURITY?	1
OUTLOOK	2
E-SECURITY APPLICATION PHASES	3
AUTHENTICATION	4
AUTHORIZATION	5
ADMINISTRATION	5
ADMINISTRATION (Continued)	6
E-SECURITY SOFTWARE TECHNOLOGIES BY PHASE	7
AUTHENTICATION AND AUTHORIZATION PHASES	7
TRUST TECHNOLOGIES	7
Overview	7
Table 1 COMPANIES PROVIDING TRUST TECHNOLOGY SERVICES	8
Pertinent Product Offerings	8
Projection of Trust Technology Related Revenues	9
Table 2 WORLDWIDE MARKET FOR TRUST TECHNOLOGIES RELATED REVENUE, THROUGH 2006 ($ MILLIONS)	10
Figure 1 WORLDWIDE MARKET FOR TRUST TECHNOLOGIES RELATED REVENUE, 2000, 2001 AND 2006 ($ MILLIONS)	10
Table 3 MARKET SHARE OF COMPANIES IN TRUST TECHNOLOGIES, 2000 (%)	11
Figure 2 MARKET SHARE OF COMPANIES IN TRUST TECHNOLOGIES, 2000	12
Profiles of Companies Providing Trust Technologies Services	12
Vordel	12
Background	12
Pertinent Product Offerings	12
Revenue	13
Competitors	13
SonicWALL, Inc.	13
Background	13
Pertinent Product Offerings:	13
Revenue	14
Competitors	15
Novell, Inc.	15
Pertinent Product Offerings	15
Revenue	16
Competitors	16
Ncipher PLC	16
Background	17
Pertinent Product Offerings	17
Revenue	17
Competitors	17
Phoenix Technologies, Ltd.	18
Background	18
Pertinent Product Offerings	18
Revenue	19
Competitors	19
Oblix, Inc.	19
Background	20
Pertinent Product Offerings	20
Revenue	20
Competitors	20
Netegrity, Inc.	21
Background	21
Pertinent Product Offerings	21
Revenue	21
Competitors	22
Entrust, Inc.	22
Pertinent Product Offerings	22
Revenue	23
Competitors	23
OpenNetwork Technologies, Inc.	23
Background	23
Pertinent Product Offerings	24
Revenue	24
Competitors	25
Identrus LLC	25
Background	25
Pertinent Product Offerings	25
Revenue	26
Competitors	26
VeriSign, Inc.	26
Background	26
Pertinent Product Offerings	27
Table 4 VERISIGN ACTIVE CUSTOMERS AS OF SEPTEMBER 30, 2001	27
Table 5 VERISIGN ACTIVITY PENETRATION AS OF SEPTEMBER 30, 2001	28
Revenue	28
Competitors	28
PriceWaterhouseCoopers (PWC)	29
Background	29
Pertinent Product Offerings	29
Revenue	29
Table 6 PRICEWATERHOUSECOOPERS REVENUE DISTRIBUTION FY 2000 (%)	30
Competitors	30
Computer Associates International, Inc. (CA)	30
Background	30
Pertinent Product Offerings	31
Revenue	32
Competitors	32
Bull	32
Background	32
Pertinent Product Offerings	33
Revenue	33
International Business Machines Corporation (IBM)	33
Background	33
Pertinent Product Offerings	34
Table 7 IBM CORPORATION DISTRIBUTION OF REVENUE 12/31/00	35
Competitors	35
Stonesoft Corporation	36
Background	36
Pertinent Product Offerings	36
Revenue	36
Competitors	37
Funk Software	37
Background	37
Pertinent Product Offerings	37
Revenue	38
VIRTUAL PRIVATE NETWORK (VPN) TECHNOLOGY	38
Overview	38
Table 8 COMPANIES PROVIDING VIRTUAL PRIVATE NETWORK TECHNOLOGY	39
Pertinent Product Offerings	39
Pertinent Product Offerings (Continued)	40
Projections of VPN Related Revenues	41
Table 9 WORLDWIDE MARKET FOR VPN RELATED REVENUES, THROUGH 2006 ($ MILLIONS)	41
Figure 3 WORLDWIDE MARKET FOR VPN RELATED REVENUES, 2000, 2001 AND 2006 ($ MILLIONS)	41
Table 10 MARKET SHARE OF COMPANIES IN VPN RELATED TECHNOLOGIES, 2000 (%)	42
Figure 4 MARKET SHARE OF COMPANIES IN VPN RELATED TECHNOLOGIES, 2000 (%)	43
Profiles of Companies Providing VPN Technology Services	43
Cylink Corporation	43
Background	43
Table 11 CYLINK MAJOR CUSTOMERS	44
Pertinent Product Offerings	44
Revenue	45
Table 12 CYLINK CORPORATION DISTRIBUTION OF REVENUE FOR YEAR ENDED DECEMBER 31, 2000 (%)	46
Competitors	46
Table 13 CYLINK CORPORATION SUMMARY OF MAJOR COMPETITORS	46
RSA Security, Inc.	46
Background	46
Pertinent Product Offerings	47
Revenue	48
Competitors	48
Check Point Software Technologies Ltd.	48
Background	49
Pertinent Product Offerings	49
Revenue	49
Competitors	50
BIOMETRICS	50
Overview	50
Pertinent Product Offerings	50
Face	50
Fingerprint	51
Hand and Finger Geometry	51
Handwriting	51
Iris	51
Multimodal	52
Retinal	52
Vein	52
Voice	53
Various Others	53
Table 14 SUMMARY OF MAJOR BIOMETRIC SOLUTION PROVIDERS BY TYPE OF BIOMETRIC TECHNOLOGY	53
Table 14 (Continued)	54
Table 14 (Continued)	55
Table 14 (Continued)	56
Projection of Biometric Related Revenue Activity	56
Table 15 WORLDWIDE REVENUES OF BIOMETRIC RELATED PRODUCTS FOR INTERNET USE, THROUGH 2006 ($ MILLIONS)	57
Figure 5 WORLDWIDE REVENUES OF BIOMETRIC RELATED PRODUCTS FOR INTERNET USE, 2000, 2001 AND 2006 ($ MILLIONS)	57
Profiles of Companies Providing Biometric-Based E-Security Services	58
Identrix	58
Background	58
Pertinent Product Offerings	58
Revenue	60
Competitors	60
Ankari, Inc.	60
Pertinent Product Offerings	61
Revenue	61
Competitors	61
AuthenTec, Inc.	61
Background	61
Pertinent Product Offerings	62
Revenue	62
Competitors	62
Veritouch Technologies Corporation	62
Background	62
Pertinent Product Offerings	63
Revenue	63
Competitors	63
Visionics Corporation	63
Background	63
Pertinent Product Offerings	64
Competitors	65
Etrue, Inc	65
Background	65
Pertinent Product Offerings	65
Revenue	66
Competitors	66
Iridian Technologies, Inc.	66
Background	66
Pertinent Product Offerings	66
Revenues	67
Competitors	67
Retinal Technologies, Inc.	67
Background	67
Pertinent Product Offerings	68
Revenue	68
Competitors	68
BioID Technology	68
Background	69
Pertinent Product Offerings	69
Revenue	69
Competitors	69
Keyware	69
Background	70
Pertinent Product Offerings	70
Competitors	70
ADMINISTRATIVE PHASES	70
FIREWALL AND INTRUSION DETECTION TECHNOLOGIES	70
Overview	70
Table 16 SUMMARY OF COMPANIES PROVIDING FIREWALL AND INTRUSION DETECTION SERVICES	71
Pertinent Product Offerings	71
Projected Firewall and Intrusion Detection Related Revenue	72
Table 17 WORLDWIDE MARKET FOR FIREWALL AND INTRUSION DETECTION RELATED REVENUE, THROUGH 2006 ($ MILLIONS)	72
Figure 6 worldwide market for firewall and intrusion detection related revenue, 2000, 2001 and 2006 ($ Millions)	73
Table 18 MARKET SHARE OF COMAPANIES IN FIREWALL AND INTRUSION DETECTION RELATED REVENUE, 2000	73
Figure 7 MARKET SHARE OF COMAPANIES IN FIREWALL AND INTRUSION DETECTION RELATED REVENUE, 2000 (%)	74
Profiles of Companies Providing Firewall and Anti-Intrusion Services	74
Cisco Systems, Inc.	74
Background	74
Pertinent Product Offerings	75
Revenue	75
Competitors	76
Network Associates, Inc.	76
Background	76
Pertinent Product Offerings	76
Revenue	77
Competitors	77
Integralis Ltd.	77
Background	78
Pertinent Product Offerings	78
Revenue	79
Competitors	79
MANAGED SECURITY SERVICES (MSS)	80
Overview	80
Table 19 SUMMARY OF MANAGED SECURITY SERVICES PROVIDERS	80
Pertinent Product Offerings	81
Projection of Managed Security Services (MSS) Revenue Activity	81
Table 20 WORLDWIDE MARKET FOR MANAGED SECURITY SERVICES REVENUE ACTIVITY, THROUGH 2006 ($ MILLIONS)	82
Figure 8 WORLDWIDE MARKET FOR MANAGED SECURITY SERVICES REVENUE ACTIVITY, 2000, 2001 AND 2006 ($ MILLIONS)	82
Table 21 MARKET SHARE PERCENTAGE OF COMPANIES PROVIDING MSS SERVICES, 2000 (%)	83
Figure 9 MARKET SHARE PERCENTAGE OF COMPANIES PROVIDING MSS SERVICES, 2000 (%)	83
Profiles of Companies Providing MSS Services	84
Counterpane Internet Security, Inc.	84
Background	84
Pertinent Product Offerings	84
Revenue	85
Competitors	85
Ser Solutions, Inc.	85
Background	85
Pertinent Product Offerings	86
Revenue	86
Competitors	86
Cigital, Inc.	87
Background	87
Pertinent Product Offerings	87
Revenue	87
Competitors	88
Ubizen	88
Background	88
Pertinent Product Offerings	88
Revenue	89
Competitors	89
Wetstone Technologies, Inc.	89
Pertinent Product Offerings	90
Revenue	90
Competitors	90
Netiq Corporation	90
Background	91
Pertinent Product Offerings	91
Revenue	91
Competitors	91
Applied Visions, Inc.	92
Background	92
Pertinent Product Offerings	92
Revenue	93
Competition	93
ANTI-VIRUS	93
Overview	93
Pertinent Product Offerings	94
Projection of Anti-Virus Software Revenue and Related Services	95
Table 22 WORLDWIDE MARKET FOR ANTI-VIRUS SOFTWARE REVENUE, THROUGH 2006 ($ MILLIONS)	95
Figure 10 WORLDWIDE MARKET FOR ANTI-VIRUS SOFTWARE REVENUE, 2000, 2001 AND 2006 ($ MILLIONS)	96
Table 23 MARKET SHARE OF ANTI-VIRUS SOFTWARE PROVIDERS, 2000 (%)	97
Figure 11 MARKET SHARE OF ANTI-VIRUS SOFTWARE PROVIDERS, 2000 (%)	97
Profiles of Companies Providing Anti-Virus Software	97
McAfee.Com Corporation	98
Background	98
Pertinent Product Offerings	98
Revenue	99
Competitors	100
Symantec Corporation	100
Background	100
Pertinent Product Offerings	100
Revenue	101
Competitors	101
Trend Micro, Inc.	101
Background	102
Pertinent Product Offerings	102
Revenue	102
Table 24 TREND MICRO, INC. DISTRIBUTION OF REVENUE FISCAL YEAR 2000 (%)	103
Competitors	103
INTERNET FILTERING	103
Overview	103
Pertinent Product Offerings	104
Projection of Internet Filtering Related Revenue	104
Table 25 WORLDWIDE MARKET FOR INTERNET FILTERING REVENUE, THROUGH 2006 ($ MILLIONS)	105
Figure 12 WORLDWIDE MARKET FOR INTERNET FILTERING REVENUE, 2000, 2001 AND 2006 ($ MILLIONS)	105
Table 26 MARKET SHARE OF COMPANIES IN INTERNET FILTERING, 2000 (%)	106
Figure 13 MARKET SHARE OF COMPANIES IN INTERNET FILTERING, 2000 (%)	106
Profiles of Companies Providing Internet Filtering Services	106
Surfcontrol, PLC	106
Background	107
Pertinent Product Offerings	107
Revenue	107
Competitors	107
Websense, Inc.	108
Background	108
Pertinent Product Offerings	108
Revenue	108
Competitors	109
SHYM Technology, Inc.	109
Background	109
Pertinent Product Offerings	110
Revenue	110
Competitors	110
OTHER	110
Table 27 WORLDWIDE MARKET FOR OTHER E-SECURITY SOFTWARE IN THE ADMINISTRATIVE PHASE, THROUGH 2006 ($ MILLIONS)	110
CONCLUSION	111
Table 28 SUMMARY OF WORLDWIDE E-SECURITY SOFTWARE REVENUE BY PHASE AND TECHNOLOGY TYPE, THROUGH 2006 ($ MILLIONS)	111
HARDWARE AND SERVICES FOR E-SECURITY	112
OVERVIEW	112
HARDWARE DEVICE TECHNOLOGY	112
HARDWARE DEVICE E-SECURITY TECHNOLOGY REVENUE	112
Table 29 WORLDWIDE MARKET FOR HARDWARE DEVICE E-SECURITY TECHNOLOGY REVENUE, THROUGH 2006 ($ MILLIONS)	113
Figure 14 WORLDWIDE MARKET FOR HARDWARE DEVICE E-SECURITY TECHNOLOGY REVENUE, 2000, 2001 AND 2006 ($ MILLIONS)	113
Table 30 MARKET SHARE OF COMPANIES IN HARDWARE DEVICE TECHNOLOGY, 2000 (%)	114
Figure 15 Market share of companies in hardware device technology, 2000 (%)	114
CONSULTING SERVICES	115
OVERVIEW	115
PROJECTION OF E-SECURITY CONSULTING SERVICES REVENUE	115
Table 31 WORLDWIDE MARKET FOR E-SECURITY CONSULTING REVENUE, THROUGH 2006 ($ MILLIONS)	116
Table 32 MARKET SHARE OF COMPANIES IN CONSULTING REGARDING E-SECURITY, 2000 (%)	117
Figure 16 MARKET SHARE OF COMPANIES IN CONSULTING REGARDING E-SECURITY, 2000 (%)	117
RISK MANAGEMENT/FRAUD DETECTION SERVICES	117
OVERVIEW	117
PROJECTION OF RISK MANAGEMENT/FRAUD DETECTION REVENUE	118
Table 33 SUMMARY OF RISK MANAGEMENT/FRAUD DETECTION REVENUE, THROUGH 2006 ($ MILLIONS)	118
Table 34 MARKET SHARE OF COMPANIES IN RISK MANAGEMENT/FRAUD DETECTION SERVICES, 2000 (%)	118
Figure 17 MARKET SHARE OF COMPANIES IN RISK MANAGEMENT/FRAUD DETECTION SERVICES, 2000 (%)	119
PROFILES OF COMPANIES PROVIDING SPECIALIZED E-SECURITY SERVICES AND SOLUTIONS	119
Gemplus, International S.A.	119
Background	119
Pertinent Product Offerings	120
Revenue	121
Table 35 GEMPLUS INTERNATIONAL, SA DISTRIBUTION OF REVENUE BY GEOGRAPHIC SECTOR (%)	121
Competitors	122
@Stake	122
Background	122
Pertinent Product Offerings	122
Revenue	123
Competitors	123
Cybersource Corporation	123
Background	124
Pertinent Product Offerings	124
Revenue	125
Competitors	125
CONCLUSION	125
Table 36 SUMMARY OF WORLDWIDE MARKET FOR E-SECURITY HARDWARE AND SERVICES, THROUGH 2006 ($ MILLIONS)	125
CONCLUSION (CONTINUED)	126
THE USER MARKET	127
Table 37 SUMMARY OF WORLDWIDE MARKET FOR E-SECURITY EXPENDITURES BY INDUSTRY SECTOR, THROUGH 2006 ($ MILLIONS)	127
SOFTWARE	127
Table 38 SUMMARY OF WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY INDUSTRY SECTOR, THROUGH 2006 ($ MILLIONS)	128
FINANCIAL SERVICES	129
Table 39 SUMMARY OF WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES IN FINANCIAL SERVICES SECTOR, THROUGH 2006 ($ MILLIONS)	129
Table 40 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES FINANCIAL SERVICES SECTOR BY TECHNOLOGY, THROUGH 2006 ($ MILLIONS)	129
Banking Services	130
Table 41 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE, BANKING SERVICES COMPANIES, THROUGH 2006 ($ MILLIONS)	131
Securities Brokerage Services	131
Table 42 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE IN SECURITIES BROKERAGE SERVICES, THROUGH 2006 ($ MILLIONS)	132
Insurance Services	132
Table 43 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE, INSURANCE SERVICES, THROUGH 2006 ($ MILLIONS)	133
RETAIL SERVICES	133
Table 44 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES IN RETAIL SERVICES SECTOR, THROUGH 2006 ($ MILLIONS)	134
Table 45 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES IN RETAIL SERVICES SECTOR BY TECHNOLOGY, THROUGH 2006 ($ MILLIONS)	134
Hospitality Services	134
Table 46 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE IN HOSPITALITY SERVICES, THROUGH 2006 ($ MILLIONS)	135
Online Auctions	135
Table 47 WORLDWIDE MARKET FOR E-SECURITY EXPENDITURES BY TECHNOLOGY TYPE IN ONLINE AUCTIONS, THROUGH 2006 ($ MILLIONS)	136
Computer Hardware and Software	136
Table 48 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE IN COMPUTER HARDWARE AND SOFTWARE, THROUGH 2006 ($ MILLIONS)	137
General Merchandise	137
Table 49 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE IN GENERAL MERCHANDISE, THROUGH 2006 ($ MILLIONS)	138
B2B COMPANIES	138
Table 50 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES IN B2B SECTOR, THROUGH 2006 ($ MILLIONS)	139
Table 51 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES B2B SECTOR BY TECHNOLOGY, THROUGH 2006 ($ MILLIONS)	139
Automotive	139
Table 52 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE FOR AUTOMOTIVE SERVICES, THROUGH 2006 ($ MILLIONS)	140
Computer Hardware and Software	140
Table 53 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE FOR COMPUTER HARDWARE AND SOFTWARE, THROUGH 2006 ($ MILLIONS)	141
Energy Sector	141
Table 54 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE FOR THE ENERGY SECTOR, THROUGH 2006 ($ MILLIONS)	142
Government/Healthcare	142
Table 55 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE IN GOVERNMENT/HEALTHCARE, THROUGH 2006 ($ MILLIONS)	143
All Others	143
Table 56 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE FOR ALL OTHERS, THROUGH 2006 ($ MILLIONS)	143
INTERNET SERVICE PROVIDERS (ISPS)	144
Overview	144
Projection of ISP E-Security Software Expenditures	144
Table 57 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE FOR INTERNET SERVICE PROVIDERS, THROUGH 2006 ($ MILLIONS)	144
HARDWARE	144
Table 58 WORLDWIDE MARKET FOR E-SECURITY HARDWARE EXPENDITURES BY INDUSTRY SECTOR, THROUGH 2006 ($ MILLIONS)	145
FINANCIAL SERVICES	145
Table 59 WORLDWIDE MARKET FOR E-SECURITY HARDWARE EXPENDITURES FOR FINANCIAL SERVICES SECTOR, THROUGH 2006 ($ MILLIONS)	146
RETAIL SERVICES	146
Table 60 WORLDWIDE MARKET FOR E-SECURITY HARDWARE EXPENDITURES BY RETAIL SERVICES SECTOR, THROUGH 2006 ($ MILLIONS)	146
B2B COMPANIES	147
Table 61 WORLDWIDE MARKET FOR E-SECURITY HARDWARE EXPENDITURES B2B SECTOR, THROUGH 2006 ($ MILLIONS)	147
INTERNET SERVICE PROVIDERS	147
SERVICES	147
Table 62 WORLDWIDE MARKET FOR E-SECURITY SERVICES EXPENDITURES BY INDUSTRY SECTOR, THROUGH 2006 ($ MILLIONS)	148
FINANCIAL SERVICES	148
Table 63 WORLDWIDE MARKET FOR USER E-SECURITY SERVICES EXPENDITURES FINANCIAL SERVICES SECTOR, THROUGH 2006 ($ MILLIONS)	149
RETAIL SERVICES	149
Table 64 WORLDWIDE MARKET FOR E-SECURITY SERVICES EXPENDITURES RETAIL SERVICES SECTOR, THROUGH 2006 ($ MILLIONS)	149
B2B COMPANIES	150
Table 65 WORLDWIDE MARKET FOR E-SECURITY SERVICES EXPENDITURES B2B SECTOR, THROUGH 2006 ($ MILLIONS)	150
INTERNET SERVICE PROVIDERS	150
E-SECURITY INTERNATIONAL	151
BACKGROUND	151
THE MARKETPLACE	151
Table 66 MAJOR US BASED COMPANIES PROVIDING SECURITY SOLUTIONS/SERVICES AND THEIR PERCENTAGE OF INTERNATIONAL BUSINESS BY THEATER OF OPERATIONS, 2000	152
Table 67 MAJOR FOREIGN BASED COMPANIES PROVIDING E-SECURITY SOLUTIONS AND THEIR PERCENTAGES OF BUSINESS BY THEATER OF OPERATION, 2000 (%)	152
PROJECTED INTERNATIONAL E-SECURITY REVENUE	152
Table 68 WORLDWIDE E-SECURITY SOFTWARE REVENUE BY GEOGRAPHICAL REGION OUTSIDE OF THE UNITED STATES, THROUGH 2006 ($ MILLIONS)	153
Table 69 MARKET SHARE PERCENTAGES FOR PROVIDERS OF E-SECURITY SERVICES/SOLUTIONS OUTSIDE OF THE UNITED STATES, 2000	153
GOVERNMENT/REGULATORY	154
OVERVIEW	154
NSA	154
DOJ	155
Criminal Prosecution	155
Trafficking in Fraudulent Access Devices, 18 U.S.C. 1029	155
Computer Fraud and Abuse Act, 18 U.S.C. 1030	155
Wire Fraud, 18 U.S.C. 1343	156
Economic Espionage Act, 18 U.S.C. 1831 To 1839	156
Wiretap Act, 18 U.S.C. 2511	156
Access to Stored Electronic Communications, 18 U.S.C. 2701	157
Anti-Trust Implications	157
FBI	157
Table 70 MAJOR MEMBERS OF LIBERTY ALLIANCE	158
GSA	158
OMB	158
Judicial Action at the State Level	159
GAO	159
Table 71 SUMMARY OF MAJOR IDENTITY THEFT DATA FURNISHED BY GAO FEBRUARY 14, 2002	160
FTC	160
DOD	160
DOD (Continued)	161
APPENDIX	162
GLOSSARY	162
SECURITY	162
Security (Continued)	163
Security (Continued)	164
Security (Continued)	165
BUSINESS	166
Business (Continued)	167
PAYMENT	168
Payment (Continued)	169
Payment (Continued)	170
SOFTWARE/DESIGN/SYSTEMS	171
Software/Design/Systems (Continued)	172
Software/Design/Systems (Continued)	173
Software/Design/Systems (Continued)	174
STANDARDS	175
Standards (Continued)	176
Standards (Continued)	177
COMMUNICATIONS	178
Communications (Continued)	179
DEVICE	180
Device (Continued)	181

LIST OF TABLES
SUMMARY TABLE: WORLDWIDE E-SECURITY REVENUE, THROUGH 2006 ($ MILLIONS)	XXV
Table 1 COMPANIES PROVIDING TRUST TECHNOLOGY SERVICES	8
Table 2 WORLDWIDE MARKET FOR TRUST TECHNOLOGIES RELATED REVENUE, THROUGH 2006 ($ MILLIONS)	10
Table 3 MARKET SHARE OF COMPANIES IN TRUST TECHNOLOGIES, 2000 (%)	11
Table 4 VERISIGN ACTIVE CUSTOMERS AS OF SEPTEMBER 30, 2001	27
Table 5 VERISIGN ACTIVITY PENETRATION AS OF SEPTEMBER 30, 2001	28
Table 6 PRICEWATERHOUSECOOPERS REVENUE DISTRIBUTION FY 2000 (%)	30
Table 7 IBM CORPORATION DISTRIBUTION OF REVENUE 12/31/00	35
Table 8 COMPANIES PROVIDING VIRTUAL PRIVATE NETWORK TECHNOLOGY	39
Table 9 WORLDWIDE MARKET FOR VPN RELATED REVENUES, THROUGH 2006 ($ MILLIONS)	41
Table 10 MARKET SHARE OF COMPANIES IN VPN RELATED TECHNOLOGIES, 2000 (%)	42
Table 11 CYLINK MAJOR CUSTOMERS	44
Table 12 CYLINK CORPORATION DISTRIBUTION OF REVENUE FOR YEAR ENDED DECEMBER 31, 2000 (%)	46
Table 13 CYLINK CORPORATION SUMMARY OF MAJOR COMPETITORS	46
Table 14 SUMMARY OF MAJOR BIOMETRIC SOLUTION PROVIDERS BY TYPE OF BIOMETRIC TECHNOLOGY	53
Table 15 WORLDWIDE REVENUES OF BIOMETRIC RELATED PRODUCTS FOR INTERNET USE, THROUGH 2006 ($ MILLIONS)	57
Table 16 SUMMARY OF COMPANIES PROVIDING FIREWALL AND INTRUSION DETECTION SERVICES	71
Table 17 WORLDWIDE MARKET FOR FIREWALL AND INTRUSION DETECTION RELATED REVENUE, THROUGH 2006 ($ MILLIONS)	72
Table 18 MARKET SHARE OF COMAPANIES IN FIREWALL AND INTRUSION DETECTION RELATED REVENUE, 2000	73
Table 19 SUMMARY OF MANAGED SECURITY SERVICES PROVIDERS	80
Table 20 WORLDWIDE MARKET FOR MANAGED SECURITY SERVICES REVENUE ACTIVITY, THROUGH 2006 ($ MILLIONS)	82
Table 21 MARKET SHARE PERCENTAGE OF COMPANIES PROVIDING MSS SERVICES, 2000 (%)	83
Table 22 WORLDWIDE MARKET FOR ANTI-VIRUS SOFTWARE REVENUE, THROUGH 2006 ($ MILLIONS)	95
Table 23 MARKET SHARE OF ANTI-VIRUS SOFTWARE PROVIDERS, 2000 (%)	97
Table 24 TREND MICRO, INC. DISTRIBUTION OF REVENUE FISCAL YEAR 2000 (%)	103
Table 25 WORLDWIDE MARKET FOR INTERNET FILTERING REVENUE, THROUGH 2006 ($ MILLIONS)	105
Table 26 MARKET SHARE OF COMPANIES IN INTERNET FILTERING, 2000 (%)	106
Table 27 WORLDWIDE MARKET FOR OTHER E-SECURITY SOFTWARE IN THE ADMINISTRATIVE PHASE, THROUGH 2006 ($ MILLIONS)	110
Table 28 SUMMARY OF WORLDWIDE E-SECURITY SOFTWARE REVENUE BY PHASE AND TECHNOLOGY TYPE, THROUGH 2006 ($ MILLIONS)	111
Table 29 WORLDWIDE MARKET FOR HARDWARE DEVICE E-SECURITY TECHNOLOGY REVENUE, THROUGH 2006 ($ MILLIONS)	113
Table 30 MARKET SHARE OF COMPANIES IN HARDWARE DEVICE TECHNOLOGY, 2000 (%)	114
Table 31 WORLDWIDE MARKET FOR E-SECURITY CONSULTING REVENUE, THROUGH 2006 ($ MILLIONS)	116
Table 32 MARKET SHARE OF COMPANIES IN CONSULTING REGARDING E-SECURITY, 2000 (%)	117
Table 33 SUMMARY OF RISK MANAGEMENT/FRAUD DETECTION REVENUE, THROUGH 2006 ($ MILLIONS)	118
Table 34 MARKET SHARE OF COMPANIES IN RISK MANAGEMENT/FRAUD DETECTION SERVICES, 2000 (%)	118
Table 35 GEMPLUS INTERNATIONAL, SA DISTRIBUTION OF REVENUE BY GEOGRAPHIC SECTOR (%)	121
Table 36 SUMMARY OF WORLDWIDE MARKET FOR E-SECURITY HARDWARE AND SERVICES, THROUGH 2006 ($ MILLIONS)	125
Table 37 SUMMARY OF WORLDWIDE MARKET FOR E-SECURITY EXPENDITURES BY INDUSTRY SECTOR, THROUGH 2006 ($ MILLIONS)	127
Table 38 SUMMARY OF WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY INDUSTRY SECTOR, THROUGH 2006 ($ MILLIONS)	128
Table 39 SUMMARY OF WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES IN FINANCIAL SERVICES SECTOR, THROUGH 2006 ($ MILLIONS)	129
Table 40 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES FINANCIAL SERVICES SECTOR BY TECHNOLOGY, THROUGH 2006 ($ MILLIONS)	129
Table 41 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE, BANKING SERVICES COMPANIES, THROUGH 2006 ($ MILLIONS)	131
Table 42 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE IN SECURITIES BROKERAGE SERVICES, THROUGH 2006 ($ MILLIONS)	132
Table 43 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE, INSURANCE SERVICES, THROUGH 2006 ($ MILLIONS)	133
Table 44 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES IN RETAIL SERVICES SECTOR, THROUGH 2006 ($ MILLIONS)	134
Table 45 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES IN RETAIL SERVICES SECTOR BY TECHNOLOGY, THROUGH 2006 ($ MILLIONS)	134
Table 46 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE IN HOSPITALITY SERVICES, THROUGH 2006 ($ MILLIONS)	135
Table 47 WORLDWIDE MARKET FOR E-SECURITY EXPENDITURES BY TECHNOLOGY TYPE IN ONLINE AUCTIONS, THROUGH 2006 ($ MILLIONS)	136
Table 48 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE IN COMPUTER HARDWARE AND SOFTWARE, THROUGH 2006 ($ MILLIONS)	137
Table 49 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE IN GENERAL MERCHANDISE, THROUGH 2006 ($ MILLIONS)	138
Table 50 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES IN B2B SECTOR, THROUGH 2006 ($ MILLIONS)	139
Table 51 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES B2B SECTOR BY TECHNOLOGY, THROUGH 2006 ($ MILLIONS)	139
Table 52 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE FOR AUTOMOTIVE SERVICES, THROUGH 2006 ($ MILLIONS)	140
Table 53 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE FOR COMPUTER HARDWARE AND SOFTWARE, THROUGH 2006 ($ MILLIONS)	141
Table 54 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE FOR THE ENERGY SECTOR, THROUGH 2006 ($ MILLIONS)	142
Table 55 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE IN GOVERNMENT/HEALTHCARE, THROUGH 2006 ($ MILLIONS)	143
Table 56 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE FOR ALL OTHERS, THROUGH 2006 ($ MILLIONS)	143
Table 57 WORLDWIDE MARKET FOR E-SECURITY SOFTWARE EXPENDITURES BY TECHNOLOGY TYPE FOR INTERNET SERVICE PROVIDERS, THROUGH 2006 ($ MILLIONS)	144
Table 58 WORLDWIDE MARKET FOR E-SECURITY HARDWARE EXPENDITURES BY INDUSTRY SECTOR, THROUGH 2006 ($ MILLIONS)	145
Table 59 WORLDWIDE MARKET FOR E-SECURITY HARDWARE EXPENDITURES FOR FINANCIAL SERVICES SECTOR, THROUGH 2006 ($ MILLIONS)	146
Table 60 WORLDWIDE MARKET FOR E-SECURITY HARDWARE EXPENDITURES BY RETAIL SERVICES SECTOR, THROUGH 2006 ($ MILLIONS)	146
Table 61 WORLDWIDE MARKET FOR E-SECURITY HARDWARE EXPENDITURES B2B SECTOR, THROUGH 2006 ($ MILLIONS)	147
Table 62 WORLDWIDE MARKET FOR E-SECURITY SERVICES EXPENDITURES BY INDUSTRY SECTOR, THROUGH 2006 ($ MILLIONS)	148
Table 63 WORLDWIDE MARKET FOR USER E-SECURITY SERVICES EXPENDITURES FINANCIAL SERVICES SECTOR, THROUGH 2006 ($ MILLIONS)	149
Table 64 WORLDWIDE MARKET FOR E-SECURITY SERVICES EXPENDITURES RETAIL SERVICES SECTOR, THROUGH 2006 ($ MILLIONS)	149
Table 65 WORLDWIDE MARKET FOR E-SECURITY SERVICES EXPENDITURES B2B SECTOR, THROUGH 2006 ($ MILLIONS)	150
Table 66 MAJOR US BASED COMPANIES PROVIDING SECURITY SOLUTIONS/SERVICES AND THEIR PERCENTAGE OF INTERNATIONAL BUSINESS BY THEATER OF OPERATIONS, 2000	152
Table 67 MAJOR FOREIGN BASED COMPANIES PROVIDING E-SECURITY SOLUTIONS AND THEIR PERCENTAGES OF BUSINESS BY THEATER OF OPERATION, 2000 (%)	152
Table 68 WORLDWIDE E-SECURITY SOFTWARE REVENUE BY GEOGRAPHICAL REGION OUTSIDE OF THE UNITED STATES, THROUGH 2006 ($ MILLIONS)	153
Table 69 MARKET SHARE PERCENTAGES FOR PROVIDERS OF E-SECURITY SERVICES/SOLUTIONS OUTSIDE OF THE UNITED STATES, 2000	153
Table 70 MAJOR MEMBERS OF LIBERTY ALLIANCE	158
Table 71 SUMMARY OF MAJOR IDENTITY THEFT DATA FURNISHED BY GAO FEBRUARY 14, 2002	160

LIST OF FIGURES
SUMMARY FIGURE: WORLDWIDE E-SECURITY REVENUE, 2000, 2001 AND 2006 ($ MILLIONS)	XXV
Figure 1 WORLDWIDE MARKET FOR TRUST TECHNOLOGIES RELATED REVENUE, 2000, 2001 AND 2006 ($ MILLIONS)	10
Figure 2 MARKET SHARE OF COMPANIES IN TRUST TECHNOLOGIES, 2000	12
Figure 3 WORLDWIDE MARKET FOR VPN RELATED REVENUES, 2000, 2001 AND 2006 ($ MILLIONS)	41
Figure 4 MARKET SHARE OF COMPANIES IN VPN RELATED TECHNOLOGIES, 2000 (%)	43
Figure 5 WORLDWIDE REVENUES OF BIOMETRIC RELATED PRODUCTS FOR INTERNET USE, 2000, 2001 AND 2006 ($ MILLIONS)	57
Figure 6 WORLDWIDE MARKET FOR FIREWALL AND INTRUSION DETECTION RELATED REVENUE, 2000, 2001 AND 2006 ($ MILLIONS)	73
Figure 7 MARKET SHARE OF COMAPANIES IN FIREWALL AND INTRUSION DETECTION RELATED REVENUE, 2000 (%)	74
Figure 8 WORLDWIDE MARKET FOR MANAGED SECURITY SERVICES REVENUE ACTIVITY, 2000, 2001 AND 2006 ($ MILLIONS)	82
Figure 9 MARKET SHARE PERCENTAGE OF COMPANIES PROVIDING MSS SERVICES, 2000 (%)	83
Figure 10 WORLDWIDE MARKET FOR ANTI-VIRUS SOFTWARE REVENUE, 2000, 2001 AND 2006 ($ MILLIONS)	96
Figure 11 MARKET SHARE OF ANTI-VIRUS SOFTWARE PROVIDERS, 2000 (%)	97
Figure 12 WORLDWIDE MARKET FOR INTERNET FILTERING REVENUE, 2000, 2001 AND 2006 ($ MILLIONS)	105
Figure 13 MARKET SHARE OF COMPANIES IN INTERNET FILTERING, 2000 (%)	106
Figure 14 WORLDWIDE MARKET FOR HARDWARE DEVICE E-SECURITY TECHNOLOGY REVENUE, 2000, 2001 AND 2006 ($ MILLIONS)	113
Figure 15 MARKET SHARE OF COMPANIES IN HARDWARE DEVICE TECHNOLOGY, 2000 (%)	114
Figure 16 MARKET SHARE OF COMPANIES IN CONSULTING REGARDING E-SECURITY, 2000 (%)	117
Figure 17 MARKET SHARE OF COMPANIES IN RISK MANAGEMENT/FRAUD DETECTION SERVICES, 2000 (%)	119

INTRODUCTION

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES