Tag Archives: Privacy industry

Valuable

6 Drivers of €1.000 Billion Identity Industry

Personal data as a new kind of currency will create €1 trillion market in EU by 2020 but the main challenge will be to establish the trust that keeps this information flowing. BCG explains why.

Evolutionary path of digital identity value creation
Image courtesy of The Boston Consulting Group

In process automation, User enablement, Personalization, Enhanced delivery, Personal data-driven R&D, and Secondary monetization — are six major trends of Identity industry according to The Boston Consulting Group report The Value of Our Digital Identity.

All of these trends will impact all of today’s industries by 2020 and all of them as a foundation have personal data which BCG describes as a new form of currency.

BCG predicts that by 2020 Identity industry, as a part of Privacy industry, will be a €1 trillion Market only in Europe, not counting rest of the World.

But as BCG states that realizing the full potential of Identity industry is not a given. People are worried about loss of privacy and the improper use of their personal information. Companies fear the backlash that could result if they approach managing personal information in the wrong way.

The challenge is to establish the trust that keeps this information flowing.

For EU businesses and governments, the use of of personal data will deliver an annual benefit of €330 billion by 2020.

For individuals, the value will be more than twice as large: €670 billion. Much of that will be due to online services (i.e. Facebook, Google…) thanks to business models that monetize personal data and are highly valued by consumers.

Identity industry will emerge over three phases – Digitization, Internal enhancement, External applications – that will in most EU countries be simultaneous.

Digitization is a process of creation of basic digital product experience specially in public sector and traditional production. Basic digital identities are used as secure authentication.

In fact, it is the public sector and health care that are expected to profit the most, realizing 40 percent of the total organizational benefit.

Internal enhancement is a process of leveraging personal data internally. Personal data will be used for R&D, delivery optimisation etc. and most active in this phase will be telco and media companies and financial services.

External applications is a phase in which companies will start tapping data ecosystem opportunities like sharing data with third parties in both directions. The most active will be internet sectors and retail.

Valuable

How much will Identity And Access Management be worth in 2018?

Identity And Access Management Market hit $5,13 billion in 2013 at is expected to double in the next three years in some surprising new areas

Image courtesy of Wikipedia
Image courtesy of Wikipedia

The Global Identity and Access Management (IAM) market is worth $5.13 billion in 2013 according to two online reports Global Privileged Identity Management Market 2014-2018 and IAM Market – Global Advancements, Forecast & Analysis (2013–2018). It’s a booming market that is expected to double in size at $10.39 billion by 2018.

That is CAGR 15.1%. And according to first report the CAGR will be even higher, at 26.6% over the period 2013-2018. So there are plenty of new business opportunities there based on identity i.e. privacy industry.

Identity and Access Management market consist of on premise and cloud IAM divided in components like provisioning, directories, SSO, Advanced authentication, Password Management, Audit, and Compliance & Governance. Wikipedia describes Identity management as the management of individual principals, their authentication, authorization, and privileges within or across system and enterprise boundaries with the goal of increasing security and productivity while decreasing cost, downtime and repetitive tasks.

What we are really talking about are businesses related to  Active Directory, Service Providers, Identity Providers, Web Services, Access control, Digital Identities, Password Managers, Single Sign-on, Security Tokens, Security Token Services, Workflows, OpenID, WS-Security, WS-Trust, SAML 2.0, OAuth, RBAC etc.

Second report states that the main driver of IAM Market are cloud IAM services which are lowering cost and complexity of IAM projects implementations. Cloud IAM services have open this market for Small- and Medium-sized Enterprises (SMEs) based on new attractive pricing models like monthly subscriptions, usage-based pricing etc.

The biggest market in terms of revenue will be North America and the biggest growth is expected in Asia Pacific.

The key vendors dominating this market space are BeyondTrust Software Inc., CA Inc., IBM Corp., and Lieberman Software Corp. But there are also Dell’s Quest Software Inc., Cyber-Ark Software Inc., Novell Inc., Xceedium Inc., Fischer International Identity LLC, NetWrix Corp. and Acceleratio Ltd.