5 Technology Businesses Poised to Boom in the Financial Crisis

By Chris Preimesberger  |  Posted 2008-10-06 Print this article Print

Risk management, e-discovery, enterprise search, e-mail archiving, and secure and managed file transfers might all beat hard times in a recession or economic downturn in the wake of the Wall Street financial crisis. Risk management, e-discovery, enterprise search, e-mail archiving, and secure and managed file transfers are all positioned for a boom as the business and financial sector call on their unique services more than ever.

Risk management, secure and managed file transfers, e-discovery, e-mail archiving, and enterprise search are all positioned for a boom as the business and financial sector call on their unique services more than ever.

1. Risk management

Companies that offer risk assessment tools, such as RSA Security, CA, BMC, McAfee, Symantec, Hewlett-Packard, SAP, Fortify and NitConnect, are on the hot list.

"This financial mess is one colossal example of poor risk management," Art Coviello, president of EMC's RSA Security division, one of the largest and most respected data security companies in the world, told eWEEK.

"It's as if the regulatory authorities and businesses themselves have not recognized the speed at which business is done today," Coviello said. "So you've got speed conspiring with complexity to create more risk, and there's nobody evaluating the risk!"

The financial crisis may mean big business for segments of the tech industry. Click here to read the full story.

There's nothing wrong with the breakneck speed at which business operates because it does lead to greater productivity, Coviello said.

"If ever there was a time when the kind of work that we're doing [was important], to raise the profile of risk mitigation and risk-rewarding equation, it's absolutely right now," he said.

2. Secure and managed file transfers

This much smaller industry also should expect to be getting more inquiries. Ipswitch, Egnyte, ShareFile, Accellion, LeapFile, Inovis, SterlingCommerce, RepliWeb and YouSendIt are some of the leading vendors in this space.

Ipswitch, a longtime provider of secure and managed file transfer clients and servers, told eWEEK that about 100 million people worldwide use its server-based software to monitor their networks. Ipswitch enables people, enterprises or systems to securely transfer files from Point A to wherever; most of its customers are in the financial services, health care and government sectors.

Ipswitch File Transfer Division President Gary Shottes said that he has seen an uptick in orders for file-transferware from companies directly affected by the Wall Street crisis.  For example, a mortgage subsidiary of a major bank recently placed a significant file transfer order to handle the offloading of additional business from its parent bank due to the crisis.

In addition, the mortgage subsidiary is now being acquired by another entity, making the need for additional secure file transfer of data even more important, Shottes said.

"We facilitate the movement of data securely from one point to another, using end-to-end encryption," Shottes said. "One example is that we automate the movement of mortgage information from 150 bank branches to a single mainframe system. The mainframe will pull that data in on an automated schedule. We'll then validate that the data was sent and received, and that data in transit has not been tampered with.

"When you have the credentials to get at that data, you know it is sent, transferred, received and stored in a manner consistent with the requirements of that data," Shottes said.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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