The Internet has been instrumental in providing small business owners with added communication and information outlets. But that increase could actually cost them. With the proliferation of the Internet as a business tool, a recent survey suggests that businesses are making themselves more vulnerable to security breaches.
A recent study by the Computer Security Institute, said 62 percent of the companies polled had experienced a breach within the past year, and 163 organizations that were able to qualify losses reported a total loss of more than $650,000 per organization.
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As a result, new programming is being designed to provide better security at a lower cost, with several companies entering that market, and at least two in the area.
Vincent Giordano is president of Virtual Media, which recently unveiled DefendNet, a managed network security system. DefendNet is a firewall-based solution that provides out-sourced administration, monitoring, and reporting on Internet security. The service is designed to protect a company’s network from hacks, cracks, and other security violations. The program was first introduced last month at the fall Internet World Conference held in New York City.
“Today there is no shortage of exposure for companies,” Giordano said. “You multiply that to the number of users on the system and that leads to threats.”
Virtual Media, founded in 1996, is a Rhode Island-based company that specializes in security and the related applications to business-to-business e-commerce clients throughout New England and New York.
Lighthouse Computer Services provides similar services. This company resells and helps companies manage security software and hardware. Anne Marie Kelley, director of business development for the North Smithfield company said it’s the constant data-sharing among the smaller companies that creates many problems.
“The inter-dependent nature of some companies has wreaked havoc on small business,” Kelley said. “With that sharing comes viruses, and even security breaks. Now that Internet use has filtered down to the small businesses, more and more businesses are realizing how exposed they are.”
Giordano said until recently Internet security was something only larger companies could consider. According to the International Data Corporation, the cost of the Firewall Security System and management can range between $35,000 and $120,000 per year. DefendNet costs companies a one-time installation fee of $2,400, and a monthly cost of $599.
The programs at Lighthouse are available for a wide-range of costs, and Kelley said more and more companies are beginning to look into it.
“Not all businesses need or can afford a security professional. And, who can find one?” Giordano said. “DefendNet works for that small to medium-sized business where resources are stretched, budgets are limited, and security requirements are just as critical as for the big guys.”
Paul McDermott, vice president of operations for Barrett & Co., a brokerage firm in Providence recently invested in the security system for his office. McDermott, said the office previously had a dial-up connection to the Internet, but when the company decided to bring a high-speed line in, he wouldn’t allow it until more security could be added.
”With this new high-speed line we needed more security,” he said. “(Security) is such a specialty and it changes so rapidly we couldn’t possibly have kept up with it ourselves.”
Giordano said Barrett & Company is a perfect example of why a small business owner also needs security.
”Smaller companies with 50 employees or smaller have the same needs as the larger companies,” he said. “Companies that may be just getting on-line also need security. But many can’t afford the products used by the larger companies, and we want them to know that there are more flavors of security than just plain vanilla.”
DefendNet is installed by connecting and box(?) specifically designed to work with existing computer systems in the office. And because improper configuration is one of the major reasons security systems fail, Giordano said DefendNet is designed to be easily compatible with any network. The service also includes five service calls per month for customer-initiated queries that can be used for adding additional users, changing network specifications, and running specific reports.
Carolyn Lavin, director of marketing for Virtual Media, said DefendNet can also be modified to fit the needs of individual business, including the addition of VPNs (Virtual Private Networks) which allow branch offices to access the network, a SPAM e-mail blocker to eliminate unwanted e-mails, and virus scrubbing to protect systems from unwanted files.
Kelley said Lighthouse could provide businesses with a variety of security programs.
”Once we identify a businesses security requirement, we can work on providing them with the appropriate program,” she said.
”Many companies are looking at it from the perspective of if I don’t do it now, how much will it cost me, instead of looking at it from how much it costs to begin the program,” she said.
Still, Lavin said, selling this type of security to smaller business hasn’t been easy.
”It’s definitely been a little challenging,” she said. “In the past we had been talking high-tech with high-tech companies. Now we are talking to people who probably don’t know as much in the area of technology, so we have to be very clear on how important it is to their business.”
