In terms of how the competition in the space breaks out in the next few years, because of the importance of fraud detection — especially in the enterprise — some very large companies are looking at the space and deciding what their strategy will be. If you have a key product like [Bharosa] fraud detection that’s embedded deep within some of the world’s finest enterprises, no matter how much the space matures or develops and no matter what resources competitors have, you still have to work with Bharosa.
IW: In the financial services space, how much of this is being driven by FFIEC guidance around single factor authentication? Where do things stand with adoption of FFIEC?
JF: There are two answers. As an objective observer, I’d have to agree that more than 50 percent of U.S. banks will technically not comply with FFIEC-related guidance by the end of the year. However, as a principle at Bharosa, I’m finding that FFIEC compliance has served as rocket fuel for my relatively young company. It’s been a key driver in our growth. We’re very much looking forward to the second phase of FFIEC guidance in 2007. We’re also looking for the effect this guidance will have on other markets. These mandates for enterprises to update security as a function of time are great environments to work in if you’re a software company.