Abstract
Call for Reliable and Cost Effective Identity Verification Solutions Boost Hardware
Authentication Devices Sales
Globally, the consumer identity segment remains the most promising, and yet, the least utilized
area in the hardware authentication devices markets. Increased online activity has brought concerns
over passwords, digital identity, and authentication to the forefront, thus creating demand for a
viable solution. Technologies and products that can address the needs of this segment in terms of
cost, manageability, deployment mechanisms, and privacy concerns are expected to be in huge demand.
Market participants can take advantage of this opportunity by developing reliable and cost-effective
systems to boost sales.
This Frost & Sullivan research service analyses the global hardware authentication devices
markets, segmenting it into one time password generating tokens (OTPs) and universal serial bus (USB)
keys along with server seats and associated software. It discusses the various trends and
opportunities while providing market share analysis, forecasts, drivers, restraints, and revenues.
The study enables companies to align their positioning strategies to benefit from the changing
environment and obtain maximum return on investment.
Regulation Compliance Force Corporate Governance Involvement in Information Security
As computer networks store increasing volumes of sensitive data, strict regulations are ensuring
that information security is now a corporate governance responsibility and involves the active
engagement of the CEOs and boards of directors. The Sarbanes-Oxley Act, Health Insurance Portability
and Accountability Act (HIPAA), Gramm-Leach-Bliley Act (GLBA), California Senate Bill 1386,
Government Information Security Reform Act (GISRA) and the Patriot Act make sure that stronger
authentication is becoming the de facto standard. As a result, hardware authentication devices
markets are witnessing rising opportunities to offer corporate customers a new line of comprehensive
security management solutions for identity confirmation.
Businesses are shunning weak passwords that result in repeated security breaches and are opting
for hardware authentication devices that can be electronically verified, and are resistant to
tampering. The security management solutions provide a two-factor authentication -- users merely
have to plug the device into the standard USB port on the computer and enter their pin code.
"The technologies utilize the users personal security devices such as a smart card along with
the persons knowledge through a pin code," says the analyst of this research service.
"End users quickly embrace these technologies due to their ease-of use and the availability to
real-time remote access, resulting in increased sales."
Rising Identity Theft and Phishing Attacks Projected to Raise Investment in Authentication
Systems
Businesses are sustaining heavy losses and serious damage to reputation because of fraudulent
transactions perpetuated by online imposters. "Identity theft and phishing attacks are taking a
toll on consumer confidence and slowing down the adoption of online commerce and e-business,"
notes the analyst. In this situation, the corporate management is forced to assure secure
remote-access connectivity to a diverse mix of users. These include distant employees who need
access to the same applications and resources as their corporate-based counterparts as well as
customers, partners, and contractors who require connectivity to select applications.
Hardware authentication devices are increasingly seen as one of the best ways to combat these
problems and provide a secure means for businesses to verify consumers. By this, business partners
are likely to be able to securely automate trade processes and supply chains over the internet to
increase productivity. Consumers can also ascertain the identity of the online host systems before
undertaking e-transactions.
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