Despite rising demand, increasing competition and the development of cloud computing technology have moderated price growth in the past three years
Los Angeles, California (PRWEB) February 09, 2015
Authentication software has a buyer power score of 3.8 out of 5. According to IBISWorld market research analyst, Hayden Shipp, "This score reflects generally favorable purchasing conditions, which result from mild price growth and low purchasing risks." However, the low availability of substitutes and the medium level of product specialization detract from buyer power. Overall, buyers have a slight edge in negotiating prices in this market.
Despite rising demand for authentication software, price growth in this market is relatively minor. "Price growth is mitigated by competition, which has increased as more providers have entered the market," says Shipp. Additionally, the use of cloud computing technology has lowered the cost of delivery, and suppliers have passed cost savings on to buyers. Also, accessing cloud-based products on a subscription basis reduces the risk of owning outdated software, which would otherwise be high due to rapid technological change. High-profile security breaches and the growing use of mobile devices and internet services will continue to raise demand for authentication software in the next three years. Fortunately for buyers, price growth will remain mild due to competition and low-cost deployment models.
Buyers also benefit from low purchasing risks. Authentication software providers have experienced healthy revenue growth and have high profit margins, resulting in low bankruptcy risk. Providers are not dependent on critical material inputs that could interrupt supply or create price fluctuations. As a result, buyers can expect reliable and steady access to authentication software and long-term support. Major vendors in the market include CA Technologies, EMC Corporation, Gemalto and Symantec.
However, some market characteristics reduce buyer power. The availability of substitutes is low, indicating that buyers have limited ability to compare the benefits and pricing of other products with authentication software. Although firewalls and antivirus software help 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. Also, product specialization is medium, which limits the number of supplier software that meets a particular buyer's needs. 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 and computers with pre-installed 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.