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Press Release |
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Survey Reveals Economic Downturn will not Affect IT Security Spending
Eighty-two Percent Believe IT Security Cuts Will Hurt Companies, 63
Percent Believe There Will Be No IT Budget Cuts In the Next Year
London, UK – June 25, 2008 – A survey released today found
that UK IT security professionals do not envisage budgets being cut
in the economic downturn but do feel more pressured to demonstrate value
and efficiency to the business. The findings of the survey, conducted
by VeriSign, Inc. (NASDAQ: VRSN), the trusted provider of Internet Infrastructure
services for the networked world, make interesting reading for UK businesses
wanting to retain the loyalty and business of their online customers.
Eighty-two percent of respondents said that a reduction
in IT security spending in the downturn will hurt businesses in the
long run. In fact, 63 percent believe that there will be no cutbacks
in the next year. The respondents that do think budgets will be cut
are still reasonably positive, with 77 percent thinking that the cut
will be less than 20 percent, and only 20 percent expecting budgets
to decrease by 20-40 percent.
Mike Davies, director of Identification and Authentication
Services, VeriSign EMEA, said, “As consumer confidence erodes in the
economic downturn, it’s important that businesses encourage trust in
online services. Security and trust need to be top of mind for businesses
wishing to maintain the recent boom years of online transactions in
today’s economic climate.”
When asked where budget cuts were most likely to happen
in the downturn, 75 percent expected a reduction in staff and overhead
costs, with only 17 percent expecting cuts to IT security spending.
Most respondents indicated that they were under pressure to demonstrate
the value of IT investments and are looking for ways to increase efficiency.
Davies continued, “In uncertain economic times it
is critical to put consumers’ minds at ease by assuring them of safety
when they make transactions online. Companies must deliver a safe online
experience for their customers, yet do so in a cost-effective manner.”
In offering a solution for businesses, Davies suggests,
“There is an increasing trend for consumers to identify themselves to
businesses, and this is being intensified by compliance and new regulations.
It’s important for businesses looking for consumers to authenticate
themselves to use a simple and cost effective model like a networked
authentication model that verifies users’ identities while cutting infrastructure
and maintenance costs. In addition, online businesses need to be more
accountable to consumers by verifying that they are who they say they
are. Online security is a two-way street and everyone needs to play
their part to ensure a productive and safe virtual world.”
The survey was carried out by VeriSign in London,
UK between April 22-24th among 179 IT security professionals.
About VeriSign
VeriSign, Inc. (NASDAQ: VRSN) is the trusted provider of Internet
infrastructure services for the networked world. Billions of times each
day, VeriSign helps companies and consumers all over the world engage in
communications and commerce with confidence. Additional news and information
about the company is available at www.verisign.com.
Contacts
Victoria Henry, vhenry@verisign.com,
+44 20 8600 0723
Weber Shandwick, LCurtis@webershandwick.com,
+44 20 7067 0513
Statements in this announcement other than historical
data and information constitute forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These statements involve risks
and uncertainties that could cause VeriSign's actual results to differ
materially from those stated or implied by such forward-looking statements.
The potential risks and uncertainties include, among others, the uncertainty
of future revenue and profitability and potential fluctuations in quarterly
operating results due to such factors as the inability of VeriSign to
successfully develop and market new products and services and customer
acceptance of any new products or services, including VeriSign EV SSL
solutions; the possibility that VeriSign’s announced new services may
not result in additional customers, profits or revenues; and increased
competition and pricing pressures. More information about potential
factors that could affect the company's business and financial results
is included in VeriSign's filings with the Securities and Exchange Commission,
including in the company's Annual Report on Form 10-K for the year ended
December 31, 2007 and quarterly reports on Form 10-Q. VeriSign undertakes
no obligation to update any of the forward-looking statements after
the date of this press release.
©2008 VeriSign, Inc.
All rights reserved. VeriSign, the VeriSign logo, the checkmark circle,
and other trademarks, service marks, and designs are registered or unregistered
trademarks of VeriSign, Inc., and its subsidiaries in the United States
and in foreign countries. All other trademarks are property of their
respective owners.
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