Features

Compliance and Policy Management Market is on Growth Track

By Sophia Mayengbam

As enterprises today have more access to information, the need for proper storage management is the prime concern for the enterprises. It is important that the large number of data stored in the server for a longer or shorter period of time is retrievable at a short notice to adhere to compliance.

The compliance market continues to offer a great variety of solutions that fit the needs of organisations of all sizes across all industries, with a broad range of different features and
price points, ranging from under USD 15 to over USD 100 per user.

According to a study by Radicati Group Inc., fast growing number of organizations today are also deploying compliance solutions for internal purposes in order to avoid potential legal liability resulting from employee misbehavior, loss of confidential data, or inconsistent customer service.

Radicati’s study, "Compliance and Policy Management Market 2006 – 2010” provides market size, fouryear forecasts, legislative and competitive information, as well as user survey results for the growing Compliance and Policy Management solutions market.

The study finds that over the past few years, compliance and policy management solution, designed to capture, preserve, and manage all relevant electronic messages, were mostly deployed by organizations in select industries such as financial, healthcare, government. These organizations had to comply with strict Regulations as Rule SEC 17a-4, HIPAA, DOD 5015, and others.

However, the study finds that a fast growing number of organisations today are also deploying compliance solutions for internal purposes in order to avoid potential legal liability resulting from employee misbehavior, loss of confidential data, or inconsistent customer service.

The compliance market today is shared by anti-spam, e-mail archiving, IM management vendors and pure-play vendors. The total worldwide market value of these solutions is expected to reach over USD 505 million in 2006, and grow over USD 1,763 million by 2010.

In terms of implementing compliance management, APAC market is at its low with only 21 percent of the chief operating officers implementing it.

According to a survey by Serena Software carried out in late 2005 and early 2006, in Singapore nearly three-quarters (73%) of companies agreed that there were business benefits in implementing compliance initiatives, only 38% of those companies already had plans in place. However, two thirds of Singapore companies believed that they would gain a competitive advantage by complying with regulatory compliance standards and nearly half (46%) of these companies are planning to implement compliance programs by the end of 2006.

The survey found that although companies spend a low proportion of IT budget on compliance-related activities, IT budgets will increase on compliance-related activities over the next 2 years.

30 percent of companies plan to spend 'over 15 percent' of their total IT budgets on compliance-related activities over the next 2 years, the survey said.

The overall APAC surveys indicated that over the next twelve months the majority of APAC companies surveyed also plan to significantly increase the implementation of regulatory compliance programs, with Korea (58%) leading the way.


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