Virtual distributor Janteknology has added encryption to its security software offering, in response to a growing need to protect sensitive and confidential data.
Janteknology has exclusive distribution rights in Australia and New Zealand to the PC Guardian encryption family developed by US-based software developer PC Guardian.
"If you look at the whole security market, the number of attacks is definitely on the rise and users are increasing concerned about protecting themselves," says Glenn Miller, managing director of Janteknology.
After scouring the market for a reliable product with a good range, the Australian niche distributor approached PC Guardian regarding a partnership. The PC Guardian range starts at $50 for a personal user application to protect e-mails, user-specified folders and centralised administrative functions. At the top end of the spectrum, users can purchase a $9500 CD encryption package with a licence allowing them to write between one to two thousand CDs per year. This works out to be about $35 per CD.
Miller says the US developer appreciated the value of Janteknology's unique, non-physical business model. "The cost we save on warehousing and other real world operations means we can offer resellers up to 10 to 15 per cent less than a 'physical world' distributor," he says.
The theft of laptops is also driving the security software market, according to Miller, with the Defence Force alone losing 500 hundred notebooks in a year. "Depending on who you are and what you do, the risk can be astronomical," he says. "Incidents of industrial espionage are on the increase."
Miller believes this demand will buoy the security sector through the anticipated downturn in software sales which 2001 will bring.
Meanwhile, Janteknology's virtual distribution model, outlined by ARN in November 2000, is "working very well. We're a little bit ahead of our time, but there's nothing bad in that," Miller adds.
One Janteknology vendor, Miller declined to name which, has expressed a desire to enter the box sales retail market, but the virtual distributor is unconcerned saying there is plenty of room for both channels to coexist.