Features - Enterprise Data Insights:

the451 FINDS GAPING HOLE IN IT VENDORS' SECURITY STRATEGIES

The451, an analysis firm covering the business of emerging information technologies, believes that the next 12 months will see significant activity in the emerging global market for enterprise storage security technologies. With gaping holes in the product strategies of a number of leading IT vendors and the issues of security and storage advancing as top priorities -- driving substantial spending by CIOs -- enterprise storage security is a marketplace on the edge of rapid commercialization.

The451 believes that significant venture capital investment, rapid M&A activity and heavy internal investment by traditional vendors in the storage systems, storage networking and enterprise security segments will result over this period.

"Many of the storage and security heavyweights interviewed for (the451's) report have barely thought through a storage security strategy, let alone clearly articulated one," according to the report. "Yet the clock is ticking. There are few startups in this market that would make attractive acquisitions or partners. Most will be acquired in the next 12 months. Apathy could soon turn into missing a major market opportunity."

The451's report identifies the nature of the resultant marketplace demand for enterprise storage security technologies; analyzes current supply-side gaps in the product portfolios of IT vendor companies; profiles significant up-and-coming startups; and details opportunities both for venture capital investment and for M&A activity over the next 12 months. The report also takes into account the role of current industry standard-setting activities and of government policies of the European Union and the United States.

Among leading IT vendor companies, the451's analysis finds strong initial footings for Brocade, Computer Associates and Hitachi Data Systems, as well as strong positions for startups Ingrian Networks and NeoScale. The451 highlights concerns about the widespread "myopia" of a number of IT vendors toward enterprise storage security -- principally EMC, McData, RSA and Symantec. Additional major IT vendors (traditionally focused either on storage or security) that are profiled in this report include Cisco Systems, Network Associates, QLogic, StorageTek and Veritas. Emerging players focused on enterprise storage security that are profiled in this report include Decru, Kasten Chase, Protegrity and Vormetric.

"It is clear that global enterprises are very concerned about the security of data both at rest and in flight within their networked storage environments," commented Steve Wallage, director of research services for the451 and a principal author of the report. "The consistent challenge for all vendors in this space is how best to commercialize this opportunity. Many of the vendors interviewed for this report identified a real obstacle in locating who within an enterprise IT organization should be responsible for storage security. Is it the storage specialist or security administrators? It does represent a challenge; however, the synthesis the451 has drawn from this is a resultant opportunity for vendors to take the lead in educating CIOs about how to address convergent concerns about security and storage. Vendors could drive the boat here, aligning thinking with their product strategies, and wind up with a sizable growth business opportunity."

Storage security market: emerging opportunities, unseen threats -- a 451 Special Report -- is 122 pages and contains significant analysis of the competitive opportunities and threats surrounding this emerging IT market segment. Authors of the report include Rob Deane, senior analyst for enterprise security; Simon Robinson, sector head for the451's Storage & Systems sector; and Steve Wallage.

Report Orders

To learn more about this report, or to discuss developing a client relationship with the451, contact Simon Carruthers, VP of sales, via phone at 212-505-3030 x-103.

About the451

The451 is an analysis firm covering the business of emerging information technologies for a senior executive audience. The firm delivers timely, research-based insight that delves deeply into the dynamics and impact of newly commercialized technologies in all major segments of the enterprise computing marketplace.

The firm is headquartered in New York, with staff in key regional locations, including San Francisco and Silicon Valley, the Boston/Route 128 area and London. For additional information on the451 or to apply for a client trial online, go to the firm's Website: www.the451.com.