Tue, Apr 01, 2014 - Page 14 News List

BOT delays hobble information security market: researcher

Staff writer, with CNA

Taiwan’s information security market grew at a slower-than-expected pace in the second half of last year because of a delay in the government’s build-operate-transfer (BOT) projects, according to market research firm IDC.

Overall vendor revenue from security software and equipment increased 20.1 percent to US$71.2 million during the second half of last year from the first half, but the figure represents a year-on-year growth of just 1.5 percent, IDC said yesterday in its latest report.

The disappointing growth resulted from a delay in the bidding schedule for the government’s BOT projects for security software and equipment that was caused by some vendors being dissatisfied with the low base prices, said Leon Kao (高振偉), senior market analyst of the enterprise solutions group at IDC.

That capped the scale of government purchase orders in the second half of last year, he said.

Kao said that financial and manufacturing companies are expected to continue deploying firewalls and intrusion prevention measures this year because of rising concerns about personal information breaches and hacker attacks.

Moreover, the telecommunications sector is likely to become a new growth driver of the nation’s security market in light of the forthcoming launch of the nation’s fourth-generation (4G) network, Kao said.

The auction for the local 4G spectrum ended on Oct. 30 last year after 392 bidding rounds, with six companies vying for licenses totaling NT$118.65 billion (US$3.89 billion), 3.3 times the floor price set by the government.

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