Encryption solutions key for online security protection

A new study conducted by the Ponemon Institute on behalf of communications company Thales revealed that encryption solutions are key to protecting against online security attacks.

Of the more than 4,000 IT managers surveyed in the United States, U.K., Germany, Brazil, Japan, France and Australia, 45 percent said deploying encryption protection services is important to protect their brand. According to the study, 40 percent said the solutions are also critical protecting against cyberattacks, while 39 percent cited data compliance as another key.

In the United States, France and U.K., compliance is the No. 1 driver for utilizing encryption services, according to the research.

"The scale and geographical reach of this year’s study is greater than ever before," noted Ponemon Institute chairman and founder Larry Ponemon. "The regional differences in encryption usage highlighted by the study are fascinating and, in some cases, surprising. Nonetheless, regardless of an organization’s location, it is clear that encryption and key management are becoming more widely deployed and increasingly seen as strategic issues."

Thales security vice president Franck Greverie also highlighted the need for effective encryption services, especially for brand protection and cyber defenses. The solutions, however, can only be successful if they are deployed properly.

Online security attacks are not expected to dissipate anytime soon, leading to fears of potential breaches and fueling the global security services market. According to market research firm Gartner, spending for these solutions is projected to grow from approximately $31.1 billion in 2010 to more than $49.1 billion in 2015.

"The security services market has changed rapidly over the last several years with a growing number of security technology providers offering their technologies as services, and customers often preferring services to save on operational costs while they consolidate resources to more strategic security related initiatives," said Gartner research director Lawrence Pingree.

He also noted that even small security vendors have an opportunity to capture some of the market, especially in North America. The region is projected to account for the largest percentage of security spending through 2015, when it will be responsible for $19 billion.

Pingree encouraged large providers to focus on emerging markets where their penetration is not as high as in North America. Such areas include Western Europe, Japan and the Asia-Pacific region.