Despite rising demand, increasing competition and the development of cloud computing technology have moderated price increases over the past three years
Los Angeles, CA (PRWEB) September 21, 2014
Authentication software has a buyer power score of 3.4 out of 5. This score reflects mixed pricing trends and low market risks, and is hurt by the low availability of substitutes, moderate market share concentration and a medium level of product specialization. Nonetheless, buyers will have a slight edge in negotiating prices or discuss package deals.
Recent pricing trends have been stable for buyers. According to IBISWorld analyst Andrew Yang, price increases have been moderated by competition in the market, which has increased as more providers have entered the market and has put pressure on suppliers to keep price increases minimal. Additionally, the use of cloud computing technology has lowered the cost of delivery, and suppliers have passed on these cost savings to buyers in the form of lower prices. However, with the growing use of mobile devices and internet services, demand for authentication software to protect company data is rising. In response, authentication providers are anticipated to raise their prices to generate additional revenue from this higher demand in the next three years. Major market suppliers include EMC Corporation, Symantec Corporation and CA Technologies.
Buyers benefit from low market risks. Many authentication software providers have experienced healthy revenue growth and high profit margins with low bankruptcy risks. Providers are not dependent on any critical inputs that may interrupt supply or create price fluctuations. As a result, buyers can expect reliable and steady access to authentication software to protect their data, continues Yang.
Despite these factors, buyer power is somewhat lowered due to the market structure. The availability of substitutes is low, indicating that buyers have limited ability to compare the benefits and pricing of other products with authentication software. While firewalls and antivirus software can be used to protect company data, these security measures can be bypassed if outside parties gain access to usernames and passwords. As such, authentication software is a necessary purchase for large enterprises with sensitive data protection requirements. Market share concentration and product specialization are medium, which is somewhat negative for buyers because it limits the number of providers that can provide authentication software. For more information, visit IBISWorld’s Authentication Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of authentication software. Authentication software is used to verify the identity of a person accessing company data. Authentication software prevents unauthorized access from outside parties. This report focuses on authentication solutions that companies use to control employee access. This report excludes hardware solutions, ID card scanning, fraud detection or computers with preinstalled authentication programs.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.