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Broadband brings security headaches
Jaclynn Bumback, Research Analyst

The need for intrusion protection against unapproved PC and network access, as well as a greater need for virus and privacy protection, will fuel end user demand for broadband Internet security products for the home over the next few years, according to Cahners In-Stat Group ( The high-tech market research firm projects that, driven, in large part, by strong sales in the firewall category, the consumer broadband security market will grow from $74 million in 2000 to over $800 million by the end of 2005.
___"Consumers today are just now beginning to accept the benefits of always-on, high-speed Internet access as availability of these services reach beyond the initial adopters," Says Jaclynn Bumback, Research Analyst for In- Stat's Enterprise and Residential Communications group. In-Stat sites that as service providers make these services widely available and consumers subscribe at impressive numbers, the realization that some level of baseline security is needed is only beginning to sink in for most consumers.
___ Based on a survey of over 1000 U.S. households, In-Stat found that of those consumers who do have a broadband connection today, 50% are without any form of intrusion protection such as a basic software or hardware firewall. "As broadband penetration approaches critical mass, the fact that half of these consumers are still fully exposed to the dangers of always-on Internet connectivity is amazing," Says Mike Wolf, Director of Enterprise and Residential Communications at In-Stat. "In time, we believe that intrusion protection will become a requirement as consumers become better educated about the need for Internet security."

In-Stat has also found that:

    • The largest category of units shipped from 2000 to 2005 will remain software-based firewalls. These products have proven popular due to their low cost (many can be downloaded free over the Internet) and wide availability.
    • The overall higher Average Selling Prices for hardware firewalls will result in a much larger overall market for hardware firewalls. The average price for a hardware firewall in 2000 was $177, compared with just $19 for a software-based firewall. By 2005 prices on hardware firewalls will have dropped significantly, but the price differential will still be considerable.

The report, "Safe and Sound: Consumer Broadband Security Market", (#RC0107HN), covers the technologies and trends driving the consumer Internet security market. Forecasts for firewalls, anti-virus protection, and privacy/content filtering products are provided through 2005, as well as profiles of the major players. To purchase this report, or for more information, please visit or contact Courtney McEuen. The report price is $ 2,995 USD.

Cahners In-Stat Group ( covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.
___ In-Stat is a unit of Cahners Business Information (, a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevierplc group.

Jaclynn Bumback,
Research Analyst, Enterprise and Residential Communications

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