In its January 2012 Magic Quadrant for User Authentication report, “Gartner predicts that, by 2017, more than 50% of enterprises will choose cloud-based services as the delivery option for new or refreshed user authentication implementations, up from less than 10% today. However, it is likely that on-premises solutions will persist, especially in more risk-averse enterprises that want to retain full control of identity administration, credentialing and verification.”
It goes on to position SafeNet as a ‘leader’ because of its market position in on-premises user authentication, and Cryptocard as a ‘visionary’ because of its development of cloud-based authentication-as-a-service. Overall Gartner sees the current $2 billion market growing by 20% year on year. A single company that offers market-leading products in both on-premises and cloud authentication is in a strong position in this evolving market. Yesterday, SafeNet CEO Chris Fedde declared, “I am pleased to announce that SafeNet has acquired Cryptocard.”
The intention is to gain Cryptocard’s cloud foothold. “As mobile and cloud computing began to transform the security industry,” explained Neil Hollister, chairman and CEO of Cryptocard, “Cryptocard saw a need to develop cloud based authentication solutions and a platform that would help our service provider and enterprise customers meet the emerging needs of this new security landscape. Our unique platform for delivering Authentication-as-a Service is powerful, easy to deploy and helps our customers secure their most sensitive data against current and future security threats.”
“Together, SafeNet and Cryptocard now offer the most complete solution available for strong authentication and access control, delivered both on premise and from the cloud,” said Fedde in his announcement.
SafeNet is a privately-held portfolio company of Vector Capital. Financial terms for the acquisition of Cryptocard have not been disclosed.