Net security firms avoid IT downturn
Despite the economic doom and gloom being experienced by much of the IT industry at the moment, many Internet security companies appear to be doing well.
The tech slump seems to be affecting companies in all areas of IT currently, however one segment that seems to be the exception to the rule is Web security. Analyst IDC said in a recent report that Internet security companies still managed to grow their revenue by a collective 33 per cent despite the downturn.
"For security software vendors, the current economic instability is a double-edged sword," Brian Burke, senior research analyst at IDC, said in a statement.
"On the one hand, it's forcing companies to reduce spending. On the other hand, it's forcing companies to look for ways to cut costs, become more security-proficient and build trusted relationships with customers, partners, suppliers, and channels— which are areas in which security software can help."
By 2005, IDC predicts the Internet security market will tally more than $14 billion a year in revenue, up from $5.1 billion last year
Some companies in the security industry have fallen on hard times.
Internet Security Systems and Network Associates have both posted recent losses. Others, such as Symantec, continue to be healthy.