Entrust Claims Head Start in Network Security Race

By Power, Carol | American Banker, October 29, 1997 | Go to article overview

Entrust Claims Head Start in Network Security Race


Power, Carol, American Banker


A Texas-based company with Canadian roots may be one of the few that can take comfort in the chaos of corporate networking.

Entrust Technologies Inc., one of a growing horde of companies offering ways to secure information on the Internet, intranets, and various permutations thereof, says it is the only one capable of delivering the whole package of data encryption, digital certification, key management, and other intricacies.

Other companies formidable in electronic commerce, like International Business Machines Corp., GTE Corp., and Verisign Inc., have staked out positions as digital certificate suppliers, a crucial function in the authentication of on-line buyers and sellers, or financial institutions and their customers.

But no other data security vendor has "the ability to do enterprise certificates for internal needs and to support all applications," said John Ryan, president and chief executive officer of Entrust Technologies, which is based in Richardson, Tex.

"You can buy the security once and use it as an enterprise architecture, which is very attractive. We also allow you to buy one piece at a time and grow to a multi-application level and to an entire enterprise management system," he said.

Depending on the size of an organization, this brand of comprehensive security, which Entrust markets as the complete public key infrastructure, can cost from $75 to $159 per internal user. Large corporations are probably looking at a $2 million to $5 million investment over two to five years.

It is an investment that more highly networked companies, particularly in the financial industry, are willing to make.

"Virtually every major bank is a customer, and now we're hitting brokerage and investment companies," said Mr. Ryan. Customers include the Government of Canada, Bank of Nova Scotia, J.P. Morgan & Co., Salomon Brothers, Visa U.S.A., the NYCE electronic banking network, and the Swift international bank communications network.

"Our original target was government and banking," he said. "While we're going to continue to focus on financial services globally, we're looking at telecommunications, health care, and Fortune 500 companies."

The priority attached to data security was evident in Ernst & Young's fourth annual survey on the subject for Information Week magazine. It indicated that 78% of North American companies had suffered security-related financial losses in the past year.

Yankee Group has predicted that sales of information security products and services will exceed $4 billion in 2000, up from less than $250 million today.

"Although it's a brand-new market," Mr. Ryan said, "we've got mature technology"-in an industry where three years of product development constitutes maturity.

Entrust Technologies began in 1993 as Nortel Secure Networks, a division of the Canadian telecommunications giant Northern Telecom Ltd. At the end of 1996 the unit was spun off and renamed, with Northern Telecom retaining a 73% stake.

The rest is divided among J.P. Morgan Investment Management, T. Rowe Price Threshold Funds, Societe Generale, Olympus Partners, and Donaldson, Lufkin & Jenrette Securities Corp. The outside investors bought $26 million of common stock.

Entrust makes its appeal to banks and other organizations seeking a single security infrastructure to which all information technology applications can be connected. Entrust offers "tool kits" to ease implementation. For example, said Entrust senior cryptologist Michael Wiener, Internet banking transactions can be secured end to end.

The company has earned profits every quarter this year. It expects 1997 revenue to more than double last year's $14 million."Our forecast is that the PKI (public key infrastructure) management system is growing by 100% a year," said Mr. Ryan. This would make it a $500 million market opportunity by 2000.

Mr. Ryan, who began working for Northern Telecom in 1981, attributes Entrust's growth to three recent events:

The availability to 75 million browsers of a public key infrastructure based on the X. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Entrust Claims Head Start in Network Security Race
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.