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Cisco to acquire IronPort Systems to get into the fast-growing email security market

On 4 January 2007, Cisco announced a definitive agreement to acquire IronPort Systems, a provider of enterprise messaging security products.

The IronPort acquisition will allow Cisco to move into the fast-growing e-mail security market, which is currently valued at approximately $850 million and growing at a rate of approximately 40% annually. The key technology value that Cisco will receive is a strategic foundation on which to begin building a security infrastructure for unified communications, including e-mail.

Gartner Analysis : The consolidation in the e-mail security market is now almost complete. Other vendors will find it difficult to compete with industry leaders Cisco, Microsoft and Symantec in the enterprise market. IBM and (potentially) Juniper Networks are the only other major vendors that have a strategic interest in this market, though BorderWare and Proofpoint remain as respected independent players. Gartner believes the two remaining service providers, MessageLabs and Postini, will likely be acquired by telecom providers in their respective markets.

Extracted from Gartner - IronPort Buy Will Make Cisco a Major E-Mail Security Player

2006 - a good year for making online businesses safe with managed filtering services

2006 has been a good year for the providers of managed filtering services and in many cases web and email filtering services have come together through partnership or acquisition to provide both from a single source.For instance, UK-based web filtering vendor ScanSafe has seen 100 per cent growth in seats served by its web filtering service. It is now selling as much in the US as in Europe, has set up in Asia and now has around 40 partnerships with internet service providers. But perhaps its biggest coup has been to reach a partnership agreement with Postini, a leading provider of email filtering services.

Postini has also expanded rapidly in the last few years, not quite at the rate of growth as spam itself but not far off that. It claims the number one position in the market for hosted email filtering. Expanding its business to include web filtering is an obvious choice for Postini as the email filtering nears saturation (although Postini continues to gain customers from churn in the market). Postini has 100s of ISP partners which could provide a lucrative route to market for its new web-filtering offering.

This has not gone unnoticed by other vendors. McAfee, the world’s largest pure-play IT security company, has itself formed a partnership with Postini and is reselling its managed filtering services. Microsoft made a couple of acquisitions recently—FrontBridge for email filtering and FutureSoft’s Dynacom I-Filter (buying its web filtering product, not the company)—so now has the capability to offer both services.

Two other UK companies, BlackSpider and SurfControl, got together in 2006 to achieve a similar goal. BlackSpider is a competitor to Postini that also provides a managed email filtering service. SurfControl has long been a competitor in the web filtering market. Along with companies such as Secure Computing and WebSense it provides filters for controlling what employees can do on the web. The aim of bringing the two companies together is to leverage one’s web filtering heritage with the other’s experience of providing a managed service.

Not to be left out, yet another UK company with a global presence, MessageLabs, also launched a hosted web filtering service in July 2006, to sit alongside its well established email filtering service. MessageLabs has a partnership with IBM, bringing the world’s number two IT vendor in to play (yes, if you haven’t already heard, HP’s latest quarterly figures allowed it to claim top spot).

Using managed filtering services is proving to be one of the most effective means of controlling web and email traffic.

Source : IT-director.com - 22/12/06 - Written by Quocirca

email content security market growth

Commercialisation of cyber-crime, growing complexity of threats and digitization of information have all served to make anti-virus, anti-spam, anti-spy and other email filtering applications indispensable for today’s organisations. Reflecting this, IT managers and chief technology officers (CTOs) have begun to increase their spending on content security application, thereby ensuring the healthy growth of the North American content security market.

New analysis from Frost & Sullivan, North American Content Security Market - Investment Analysis and Growth Opportunities, reveals that revenues in this market totalled $2.19 billion in 2005, and can reach $4.28 billion in 2012.

email compliance and policy management - market growth

“We expect compliance and policy management solutions to be protecting 110 million mailboxes worldwide by year end 2006, up 78 percent from 2005,” writes Masha Khmartseva, principal analyst of the Radicati Group, in a recent report. By 2010, the firm expects to see 517 mailboxes protected worldwide.

According to the Radicati report, the worldwide market for compliance and policy management solutions will be “over $505 million by the end of 2006, up 38 percent from 2005.” By 2010, the annual revenues will reach $1.7 billion.

outsourced email archiving market growth forecasts

The Radicati Group has put the 2006 worldwide revenue figure for outsourced email archiving at $248 million; but by 2009, the firm predicts that figure will be $1.3 billion.

The prospect of saving money in litigation searches, avoiding fines and lawsuits, could tip the scales in favor of outsourcing. For many firms, adding compliance and email security products on top of archiving could mean added cost and complexity, particularly given the costs of filtering software, which can be $25 per seat. (See Stop That Email!.)

End Result? If services function as promised, expect to see outsourcing grow in popularity as an email management option.

Email Content Filtering Market - Growth and Diversification

Frost & Sullivan finds that the World Content Filtering Market earned revenues of $1.31 billion in 2005 and estimates to reach $4.86 billion by 2012.

The content filtering market is taking over the IM market as well, since most IM vendors have been bought by content filtering vendors and most content filtering vendors now possess IM filtering capabilities. The diversification trend also applies to delivery modes. Earlier, vendors delivered solutions in the form of either software, appliances or managed services. This trend has changed and vendors are now offering two or three of the options of software, appliances and managed services.

Vendors that are competing in only web or email filtering and rely on a single delivery mode are rightfully concerned about their competitive potential. In such a scenario, considering mergers and acquisitions, or partnering in order to diversify their product offerings will prove beneficial. Diversification strategies can include both web and email filtering, strengthening outbound email filtering capabilities, or adding hardware and/or hosted services to product portfolios.

Junk Email or Dunk Email?

In October, 63 billion junk messages were sent daily, on average, compared with 31 billion a year ago, according to data from IronPort Systems. Another anti-spam specialist, MessageLabs, reports that 88.7 percent of all e-mail sent in October was unsolicited. That percentage is expected to rise to nearly 90 percent in November and December.

That could add up to a huge pile of unwanted e-mail. IronPort predicts that the number of spam messages will average 78 billion a day in December, up from 38 billion last year.

Internet service providers and anti-spam companies are working hard to fight this onslaught of spam. But it’s a game of cat-and-mouse, and right now, the spammers are slipping away, experts said. “The anti-spam vendors are struggling,” said Natalie Lambert, an analyst at Forrester Research. “The best vendors are able to stop about 98 percent of spam.” That still leaves 2 percent that gets through, which is a lot with the current, increasing spam levels, she added.

Source : c | net news


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