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2010 Annual Study:
U.S. Enterprise Encryption Trends Report


November 16, 2010
Ponemon and Symantec Research
• Examines the following topics:
    • Are companies leveraging encryption technologies?
    • What are the key drivers?
    • The maturity of an organization’s security and data protection program
    • If organizations use a platform approach to managing encryption
    • How encryption relates to organizations’ risk management efforts
    • How important encryption is for data on mobile devices

• Fifth year Ponemon has conducted this survey
• 964 U.S.-based IT managers and business executives. 38% director level or
  higher
• 15 industries


2010 Annual Study: U.S. Enterprise Encryption Trends                           2
Compliance is #1
• For the first time in five years, regulatory compliance was the
  primary reason companies implemented encryption
  technologies
    – 69 percent of respondents in 2010
    – Up five points over 2009, up 25 points over 2006


• Mitigating data breaches slips to the #2 spot
    – 63 percent of respondents in 2010
    – Down four points from 2009


HIPAA, state privacy laws are top concerns among U.S.
  enterprises

2010 Annual Study: U.S. Enterprise Encryption Trends                3
Data Breaches Are on the Rise
88 percent of respondents report they had at least one
breach in 2010, up three points from 2009
   •23 percent had only one breach – consistent with
   2009
   •40 percent had 2-5 breaches – consistent with 2009

              The group that experienced more than five is the
              only group that grew, up 3 points from 2009, up
              12 points from 2008


2010 Annual Study: U.S. Enterprise Encryption Trends             4
Data Protection in the Risk Management Spotlight
An overwhelming majority of respondents have given data
 protection top priority
• 93 percent stated that data protection is a "very important" or
  "important" part of their overall risk management efforts.
    – Nearly three-quarters (73 percent) consider data protection “very
      important,” up 12 points from 2009.
• Only 2 percent are unsure of data protection’s role in risk
  management, down from 12 percent in 2009.
• Respondents who called data protection “not important”
  dropped by nearly a half:
    – 5 percent in 2010
    – 9 percent in 2009

2010 Annual Study: U.S. Enterprise Encryption Trends                      5
More Companies Implementing Encryption
• Not surprisingly, more companies have implemented, or plan to
  implement, data encryption technology.

• 84 percent of respondents have either fully executed or are in
  the process of implementing, encryption technology.
    – Represents a two point increase over 2009 and 5 point over 2008.




2010 Annual Study: U.S. Enterprise Encryption Trends                     6
Higher Priority = More Budget Dollars


Technology solutions with encryption are receiving the
 largest increases in IT budgets
• 2010 earmarks for encryption solutions are up 9
  percent from 2009 and 12 percent since 2008.
• Endpoint security solutions including laptop encryption
  are up 10 percent from 2009 and 11 percent from
  2008.
• Key management for encryption solutions in 2010 rose
  9 percent over 2009 and 10 percent over 2008.

2010 Annual Study: U.S. Enterprise Encryption Trends     7
Full Disk Encryption is Gaining…
Most popular encryption technologies in 2010:
1.File server encryption:62 percent
2.Full disk encryption:59 percent*
3.Database encryption: 57 percent
*Full disk encryption is the fastest-growing, moving into the #2
  spot, up 5 percent from 2009 and up 15 percent since 2007.




2010 Annual Study: U.S. Enterprise Encryption Trends               8
In Summary
• Key Findings:
    – Data breaches continue to rise and become more severe
    – Regulatory compliance surpasses mitigating data breaches as
      the primary driver behind companies implementing
      encryption
    – More companies have implemented/are implementing
      encryption technologies than in 2009
    – Data protection is increasingly viewed as a mission-critical
      element of overall risk management
    – Encryption technology receiving increasing number of
      earmarks in companies’ IT budgets


Presentation Identifier Goes Here                                    9

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2010 Annual Study: U.S. Enterprise Encryption Trends Report

  • 1. 2010 Annual Study: U.S. Enterprise Encryption Trends Report November 16, 2010
  • 2. Ponemon and Symantec Research • Examines the following topics: • Are companies leveraging encryption technologies? • What are the key drivers? • The maturity of an organization’s security and data protection program • If organizations use a platform approach to managing encryption • How encryption relates to organizations’ risk management efforts • How important encryption is for data on mobile devices • Fifth year Ponemon has conducted this survey • 964 U.S.-based IT managers and business executives. 38% director level or higher • 15 industries 2010 Annual Study: U.S. Enterprise Encryption Trends 2
  • 3. Compliance is #1 • For the first time in five years, regulatory compliance was the primary reason companies implemented encryption technologies – 69 percent of respondents in 2010 – Up five points over 2009, up 25 points over 2006 • Mitigating data breaches slips to the #2 spot – 63 percent of respondents in 2010 – Down four points from 2009 HIPAA, state privacy laws are top concerns among U.S. enterprises 2010 Annual Study: U.S. Enterprise Encryption Trends 3
  • 4. Data Breaches Are on the Rise 88 percent of respondents report they had at least one breach in 2010, up three points from 2009 •23 percent had only one breach – consistent with 2009 •40 percent had 2-5 breaches – consistent with 2009 The group that experienced more than five is the only group that grew, up 3 points from 2009, up 12 points from 2008 2010 Annual Study: U.S. Enterprise Encryption Trends 4
  • 5. Data Protection in the Risk Management Spotlight An overwhelming majority of respondents have given data protection top priority • 93 percent stated that data protection is a "very important" or "important" part of their overall risk management efforts. – Nearly three-quarters (73 percent) consider data protection “very important,” up 12 points from 2009. • Only 2 percent are unsure of data protection’s role in risk management, down from 12 percent in 2009. • Respondents who called data protection “not important” dropped by nearly a half: – 5 percent in 2010 – 9 percent in 2009 2010 Annual Study: U.S. Enterprise Encryption Trends 5
  • 6. More Companies Implementing Encryption • Not surprisingly, more companies have implemented, or plan to implement, data encryption technology. • 84 percent of respondents have either fully executed or are in the process of implementing, encryption technology. – Represents a two point increase over 2009 and 5 point over 2008. 2010 Annual Study: U.S. Enterprise Encryption Trends 6
  • 7. Higher Priority = More Budget Dollars Technology solutions with encryption are receiving the largest increases in IT budgets • 2010 earmarks for encryption solutions are up 9 percent from 2009 and 12 percent since 2008. • Endpoint security solutions including laptop encryption are up 10 percent from 2009 and 11 percent from 2008. • Key management for encryption solutions in 2010 rose 9 percent over 2009 and 10 percent over 2008. 2010 Annual Study: U.S. Enterprise Encryption Trends 7
  • 8. Full Disk Encryption is Gaining… Most popular encryption technologies in 2010: 1.File server encryption:62 percent 2.Full disk encryption:59 percent* 3.Database encryption: 57 percent *Full disk encryption is the fastest-growing, moving into the #2 spot, up 5 percent from 2009 and up 15 percent since 2007. 2010 Annual Study: U.S. Enterprise Encryption Trends 8
  • 9. In Summary • Key Findings: – Data breaches continue to rise and become more severe – Regulatory compliance surpasses mitigating data breaches as the primary driver behind companies implementing encryption – More companies have implemented/are implementing encryption technologies than in 2009 – Data protection is increasingly viewed as a mission-critical element of overall risk management – Encryption technology receiving increasing number of earmarks in companies’ IT budgets Presentation Identifier Goes Here 9