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Bangalore: The recent news of cyber attacks on computer networks of corporate and government bodies have attracted the attention of building new technologies to protect them. The Silicon Valley venture capitalists are looking forward to invest in this business and make profit from it.
According to Reuters analysis, the rise of mobile devises and cloud computing trend have attracted the focus of many security start-ups on protection at the network level rather than individual computers or hardware.
Thomson Reuters data from the National Venture Capital Association claims to see an increase in the amount of investment in the information technology security sector this year which will exceed last year's $4432.3 million. The sector has already attracted an investment of $147.4 million in the first quarter. Bill Maris, Managing Partner, Google Ventures, feel the area of being of huge interest for them. The firm has already invested an undisclosed amount in Dasient, a Sunnyvale, California-based company that protects websites from malware attacks. With lots of opportunity that he foresees in this area, he finds it difficult-to-solve problem.
The recession of 2008 had slowed down the fund fueling in this sector. But the number of survivals after recession is pulling interest of VCs in the sector. Three factors are considered to be responsible for this. The series of cyber attacks on companies ranging from Citigroup to Sony and institutions from the International Monetary Fund to the U.S.A Senate, is one of the important reason. The second reason is the shift from desktop computers towards mobile and the cloud, which requires new security systems to match as data is stored on the web.
Paul Stich, Chief Executive, Dasient, said that the limited battery life of mobile devices boosts the attractiveness of security that runs on the network, rather than going for mobile device. The acquisition of smaller technology companies by the larger one for bridging the gaps in their security portfolios is the third reason. Many big and small deals have come into play among which are the acquisition of McAfee, an U.S.A security software maker by Intel Corp for $7.68 billion and acquisition of network security firm SecureWorks by Dell which was backed by Noro-Moseley Partners, Alliance Technology Ventures and Sbk Capital and Hewlett-Packard company's acquisition of software security company Fortify, whose backers include Kleiner Perkins.
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