Security tokens used to safeguard computer networks risk going the way of the rotary phone as EMC Corp. (EMC)’s RSA unit, the top maker of the devices, is challenged by smartphones deployed as cyber-protection tools.
Vasco Data Security International Inc. (VDSI) and Gemalto NV (GTO), two companies with identification-software that runs on tokens, tablets and smartphones, saw their market share roughly double last year, reducing RSA’s portion to 60 percent from 76 percent in 2011, according to WinterGreen Research Inc.
As an increasing number of consumers shop and bank online and more workers access corporate networks via mobile devices, global sales of identity-protection products will surge to $6.43 billion by 2016, from $4.51 billion last year, according to IDC. Software startups seized on an opening created after hackers compromised millions of RSA tokens two years ago to promise corporate customers better protection at a lower price.
“There’s a lot of innovation going on right now because it’s a dangerous world,” Lee Congdon, chief information officer at Red Hat Inc. (RHT), said in an interview. “Malicious people are becoming more adept. Folks are actively trying to steal your secrets and money.”