For Immediate Release

COMPANIES PREPARED TO PAY MORE FOR WIRELESS SECURITY

FierceWireless-Bluefire Wireless Security Survey Points to More Concern, Greater Security Risks as Mobile Handheld Usage Increases

BALTIMORE, MD May 31, 2006 � With more companies using wireless devices for sophisticated applications – and a greater recognition that, in doing so, they potentially are putting sensitive corporate and customer information at greater risk – an increasing number of executives say their businesses would be willing to pay a premium to secure their smartphones or other wireless devices, according to the results of a nationwide survey released today.

The FierceWireless-Bluefire Wireless Security Survey indicates three out of five survey respondents thought their companies would be willing to pay more for wireless security if it were offered as part of a monthly service plan by a wireless carrier. Forty-three percent believed their organizations would pay more if security was provided by smartphone or wireless device manufacturers, while nearly half thought their companies would purchase more devices if security risks could be virtually eliminated.

“The survey results paint a very different and surprising picture within the industry,” says Bluefire Security Technologies’ CEO Mark Komisky.

“A year ago, the chief security concerns revolved around the potential loss or theft of smartphones and wireless devices, but the results of the FierceWireless-Bluefire Wireless Security Survey clearly paint a very different and more urgent story,” Komisky notes. “As enterprises increasingly are using wireless devices to create and transmit new data and to access the most sensitive information sitting on their corporate servers, the risks are much greater, the stakes are much higher, and the potential loss is much more catastrophic.”

“This data suggests that the next-step in the evolution of wireless security is for handset manufacturers and carriers to bundle security packages for both end users and enterprises. In doing so, they would not only be creating an important key differentiator, but also responding to a real concern and demand among users,” says Kevin Burden, program manager for mobile devices services, for international analyst group IDC.

“The adoption of mobile devices has seen phenomenal growth in the last decade, essentially creating an economy dependent on being connected at all times,” said Jeff Giesea, President of FierceMarkets which publishes FierceWireless. “For businesses and consumers alike, we are also seeing a significant uptake in the mobile device becoming the one device for all communications including replacement of traditional computing devices, making security a significant concern and issue for the industry.”

The nationwide, online survey of nearly 1,800 smartphone and wireless device users in healthcare, financial services, manufacturing, consumer products, professional services, technology, government, and the military was administered by online wireless publication FierceWireless (www.fiercewireless.com) and wireless security provider Bluefire Security Technologies.

Other major findings of the FierceWireless-Bluefire Wireless Security Survey include the following:

• More than 80% of respondents reported their organizations’ use of handheld devices had increased over the past two years. Aside from voice communications, top-ranked wireless applications included corporate email access and remote access to corporate networks (more than three-fourths of respondents ranked corporate email as among their most-used applications, with remote access to corporate servers ranked second).
• As to specific wireless security concerns, more than 70% of respondents said their top-ranked wireless security concerns are viruses or attacks on the corporate network, and the security of data during transmission over wireless or cellular networks. Loss or theft of wireless devices ranked a distant third, with about 40% of respondents indicating a concern.
• 86% of all respondents agreed that security protection should be required of their handheld devices. More than 90% reported being concerned about the security of email access to corporate server-based accounts and remote access to corporate networks, while 84% said access to web-based email accounts had become a significant security concern.
• 67% of respondents said they were worried about the security of web access via their smartphones. Other areas of security concern for more than half of the respondents included IM, order entry, CRM, and SMS, or MMS.

To Bluefire’s Komisky, the survey results underscore the new realities of wireless usage – and the need for greater protection.

“Smartphone and wireless device users are sending and receiving information to and from their corporate servers, which has increased awareness and concerns about security across job functions and across industry sectors,” Komisky explains.

“Clearly, users are no longer simply concerned they may lose their phone book contacts or their calendars,” he continues. “They are concerned for and about their companies and their customers – concerns which should translate into their companies’ adoption of more sophisticated wireless security protections, including firewalls and VPNs.”

The FierceWireless-Bluefire Wireless Security Survey was completed by subscribers of FierceWireless (http://www.fiercewireless.com) and its sister online publication, IT-Wireless (http://www.it-wireless.com) throughout April 2006, as well as by attendees at the SmartPhone Summit and CTIA. About 22% of respondents identified themselves as executive management, 27% as holding technical/engineering positions, and 20% as sales/business development managers. Other job functions reported included marketing/public relations (12%), programming (3%), and accounting/financial (2%).

Respondents represented a range of industry sectors, including telecommunications (34%), IT/technology (22%), professional services (11%), financial services (6%), manufacturing (6%), as well as consumer products, healthcare, education, and government (military and non-military).

A complete report on the FierceWireless-Bluefire Wireless Security Survey is available at www.bluefiresecurity.com/securitysurvey.