Change in End-User Perception to Stimulate Adoption of Biometric Network Authentication Software.

Business Editors/High-Tech Writers

PALO ALTO,Calif.--(BUSINESS WIRE)--March 23, 2004

Biometric network authentication, considered complex and intrusive, faces several misconceptions in terms of costs and benefits. However, its ability to create a more secure network outweighs all such challenges.

The U.S. healthcare industry, specifically, is expected to benefit from biometric network authentication as it strives to comply with The Health Insurance Portability and Accountability Act (HIPAA).

New analysis from Frost & Sullivan, "U.S. Biometric Network Authentication Market" (www.autoid.frost.com), reveals that this market accrued revenues worth $115.5 million in 2003 and is poised to expand significantly by 2010.

"HIPAA guidelines forbid sharing of confidential patient healthcare information unless authorized," says Frost & Sullivan Industry Analyst Jarad Carleton. "Healthcare companies have realized the importance of replacing alphanumeric-based network passwords with biometric authentications that can provide simplified and secure access to health records."

Existing complex password-based protection procedures in healthcare companies and hospitals often result in compromised security. Multiple users handling numerous applications under various usernames and passwords that require frequent renewals as well as multiple persons using the same computer terminals are often to blame.

Hospitals are increasingly adopting the biometric single `sign on' solution to remove loopholes in such security procedures. This solution facilitates storing single username and passwords and automatic retrieval of the same for immediate network access. This not only reduces time, but also increases worker productivity.

In order to quicken adoption of biometric network authentication in both hospitals and other end-user segments, biometric vendors must reiterate their value proposition. This requires changing consumer perception. Inaccuracies depicted in science fiction books and movies have skewed the consumers' views.

For instance, the perception that iris-scanning cameras are complicated and intrusive because they require direct positioning of the eye. Contrary to this, technology advancements now facilitate faster, simplified and accurate authentication procedures. The camera automatically locates the eye for scanning from a reasonable distance.

However, the downside of such advanced biometric software is that it operates in conjunction with expensive hardware peripherals, and therefore, creates wrong perceptions regarding cost. For example, end users with restricted IT budgets are hesitant in spending more than $200 for iris-scanning cameras and approximately $170 for fingerprint scanners.

Additionally, organizational mindset regarding internal and external security has magnified the unfavorable cost perception. Companies consider firewalls and antivirus software that protect them from external threats, as capable of providing a quicker and more tangible ROI when compared to internal security solutions such as biometric authentication.

However, FBI reports on crimes relating to tampering of network security emphasize the importance of internal security and the immediate need to enhance internal security systems. In fact, 90 percent of attempted "network break-ins" are internal -- mainly from disgruntled employees and consequently 75 percent of the companies have suffered significant financial losses.

"Biometric authentication must be portrayed as an essential cost-saving tool that can prevent financial damage arising from intellectual property theft and reduce outside liability," explains Carleton. "As end users demand immediate purchase benefits, biometric software vendors should provide details on ROI and emphasize on the resulting cost savings to boost sales."

"U.S. Biometric Network Authentication Market" is part of the IT Security subscription, and is a comprehensive analysis of growth opportunities available to the participants in the biometric network authentication market. Iris and fingerprint are the two major application software segments analyzed. This research service also provides an insight into the challenges and competitive landscape. The research highlights the needs of the end user, thereby enabling the participants to strategize and plan marketing efforts effectively. Executive summaries and interviews are available to the press.

If you are interested in a virtual brochure, which provides an overview of the latest analysis of the U.S. Biometric Network Authentication Market, please e-mail Dustin McVey at [e-mail] with the following information:

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Frost & Sullivan, an international growth consultancy, has been supporting clients' expansion for more than four decades. Our market expertise covers a broad spectrum of industries, while our portfolio of advisory competencies includes custom strategic consulting, market intelligence and management training. Our mission is to forge partnerships with our clients' management teams to deliver market insights, create value and drive growth through innovative approaches. Frost & Sullivan's network of consultants, industry experts, corporate trainers and support staff spans the globe with offices in every major country.

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