Posted 01/31/2014 02:27 PM ET
The spiraling growth of the Internet has helped companies strengthen their relations with customers and vendors. It has also provided a haven for criminal hackers seeking new ways to steal customer credit card numbers, bank account numbers and other sensitive data.
Recent breaches at big-name retailers have only scratched the surface of the problem, says Frederick Ziegel, an analyst for Topeka Capital Markets.
"You can't pick up a newspaper these days and not see a story about some security-related issue, whether it's Target or Neiman Marcus, and you have the whole mobile market ahead of you," he said, "They have not even begun to figure out what they need to do to protect their critical infrastructure."
McAllen, Texas, Police Chief Victor Rodriguez next to dozens of fraudulent credit cards confiscated at the border when the town's police arrested two... View Enlarged Image
Analyst Daniel Ives with FBR Capital Markets & Co. puts it in even starker terms. The Internet is a battleground, he says, and security software is no longer a luxury item.
"The threat level facing networks is nothing like we have ever seen before," he said. "It's an accelerating market opportunity where the total addressable market continues to expand."
A set of young companies is growing fast in the sector, offering better ways to address security gaps. Long-standing players are hustling to re-invent themselves in order to meet the changing environment.
Everyone is trying to stay ahead of the crooks, says Mark McCaffrey, lead global software analyst for PricewaterhouseCoopers.
"The more adept security systems become, the more that people figure out ways to get around it," he said.
Multifaceted Approach
Security software comes in several varieties. And not everyone is chasing the same portion of the market.
NQ Mobile (NQ) sells mobile security and mobile device management products. AVG Technologies (AVG) extends its security products to PCs, mobile devices and small businesses.
Zix (ZIXI) sells an email encryption service in cloud-based computing, a system for storing and accessing data over the Internet. Qualys (QLYS) sells vulnerability management software for managing data threats. Symantec (SYMC), one of the larger players, sells software that protects data networks as well as devices such as PCs.
Palo Alto Networks (PANW) is focused on protecting company firewalls, while FireEye (FEYE)specifically detects new types of threats to a company's website, email and data base systems.
"Every security vendor has their own blueprint of attacking the threat environment," Ives said.
They also show widely varying fundamentals. Some smaller new issues, including NQ Mobile and Palo Alto, are growing fast on both the sales and revenue lines.
Read More At Investor's Business Daily: http://news.investors.com/business-industry-snapshot/013114-688436-security-software-cashes-in-on-growing-threats.htm#ixzz2sBut2XDR
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook
No comments:
Post a Comment