Michelle M. Shen

                                                 The Promise of The Promise of Future TechnologiesFuture Technologies

Michelle M. ShenJune 26, 2003

2003 NY Conference and Exposition

Michelle M. Shen

Agenda

•Stakeholders of Biometric Purchase and Their Needs•IT Security Market Overview•Biometric Market Overview

•Biometric Horizontal Market Overview•Key Players•Biometrics v.s. Other IT Security Technologies

•Biometric Market Trends•Biometrics is among Gartner’s 2002 Top Emerging Technologies with Highest Visibility and

User Expectations•A Closer Look at Existing Biometric Technologies•The Promise of Future Technologies – Overview•Gait Recognition•Vein Recognition•Lip Print Identification•Lip and Facial Movement Analysis•Wrap Up

Michelle M. Shen

Stakeholders of Biometric Purchase

OEMsBiometric

Solution Providers

End Users

VARsISVs

Research Authority

InfluencersIndustry StandardsBioAPICBEFF

Michelle M. Shen

Stakeholders’ Needs

•Access to and share customer base•Customizability, integrability and serviceability•Joint venture

•Access to and share customer base•Scalability and serviceability•Joint venture

ISVs

OEMs

End Users

Industry StandardsBioAPICBEFF

VARs

Biometric Solution Providers

•Access to and share customer base•Flexibility of customization•Risk reduction and diversifications•Strategic alliance•Trust

Research Authority

Influencers

•Access to and share customer base•Share brand equity•Final product functionalities•Partners intimacy•Trust

•Detailed components and information•Product functionalities•Distinctions•Sponsorship

•Detailed components and information•Product functionalities•Referrals•sponsorship

•Desktop functionality•Ease of use•Address specific business problems•Serviceability

•Product compliance•Meet standards•Product functionalities

Michelle M. Shen

IT Security Market Overview

Worldwide IT Security Revenue Share by Type, 2000

Software 36%

Hardware 16%

Services 48%

•Demand on heterogeneous security/authentication solutions is increasing.

•Proactive security strategies are dominating overall corporate IT security strategies.

•Security content management (a.k.a. the security source) sees its great potential.

•All-level network accessibility requires easy-to-use and portal security solutions.

•Security Software: Firewalls, Antivirus, Encryption;

•Security Hardware: Biometrics, Token and Smartcard, Firewall/VPN Devices;

•Security Services: Consulting, Response, Training and Education.

Trends: switch from responsive to proactive security strategies.Trends: switch from responsive to proactive security strategies.

Data Source: IDC Report – IT Security Software, Hardware and Services Forecast and Analysis, 2001-2005.

Michelle M. Shen

Biometric Horizontal Market Overview

250.9399.5

523.9729.1

1049.6

1440.6

1905.4

0.0

500.0

1000.0

1500.0

2000.0

Year1999

Year2000

Year2001

Year2002

Year2003

Year2004

Year2005

Hand15%

Face12%

Voice10%

Signature8%

Other1%

Fingerprint50%

Iris4%

Worldwide Biometrics Revenue Shareby Technology, 2001

•Aggregate biometrics market revenue will grow steadily throughout 2005.

•Fingerprint biometric technology holds the largest share of the commercial/IT market, with 58%.

•Biometric technologies are still served as security-enhancers and complementary security solutions.

•Trends are the applications of more diversified biometric solutions. Data Source: IDC Report - Worldwide Hardware and Biometrics Authentication Forecast and Analysis, 2001 –2006

2.9%

17.2%

13.2%

45.4%

21.2%

4.1%

13.8%

12.0%

58.1%

12.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Facial

Signature

Iris

Fingerprint

Voice

Hand Year 2000 Year 2001

Worldwide Commercial/IT Biometrics Revenue Share by Technology, 2000 and 2001

Fingerprint technology still commands the largest market share.

Michelle M. Shen

Biometric Market Overview: Key Players

Manufacturers, Solution Providers, Resellers/Distributors, BSP

Michelle M. Shen

Biometrics v.s. Other IT Security Technologies

0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

3500.0

4000.0

4500.0

Y2000 Y2001 Y2002 Y2003 Y2004 Y2005

Biometrics

Token andsmart card

Firewall/VPNappliances

Cryptographicacceleration

StandaloneVPN

IDSappliances

Other securityappliances

Something You Have

Something You Are

1 Something You Know

2

3

•Biometrics is one of the fast-growing security hardware technology with a CAGR of 49%.

•Biometrics security at “Application- level” as versus “Network-level” is one of the major challenges yet opportunities for biometric vendors.

•Three-factor authentication method addresses the highest security level by combining password, smartcard, and biometrics.

•Demand on multiple security/authentication solutions is increasing.

•Strong interoperability of biometric technologies will help expand vendors’ product and service lines.

•E-business is still the strongest driving force behind the advanced security needs.

Michelle M. Shen

Biometric Market Trends

Physical Security and Information Security Combines Forces

•The need to determine who individuals are and the functions they are permitted to perform has

become paramount. •The use of biometrics technology will reinforce current authentication methods such as passwords. •Companies will adopt multiple authentication methods, including both biometric hardware and

software solutions, to ensure a higher confidence in an individual’s identity. •Biometrics and other hardware authentication technologies will also bridge the current gap between

physical and network access.

The Growth of Biometric Software Solutions

•The movement towards providing software-only for authentication needs is dragging more and

more attention in the industry. •Authentication vendors are de-emphasizing hardware, partnering with consumer products

manufacturers, and building technology-agnostic authentication software platforms.

Michelle M. Shen

Biometric Market Trends - Continued

The 2002 Hype Cycle of Emerging Technologies – Gartner Research

The complexity and privacy implications of biometric processing will continue to be another major roadblock to adoption through 2005

Michelle M. Shen

A Closer Look at Existing Biometric Technologies

Maturity Reliability Accuracy Acceptance Stability

Fingerprint

Hand Geometry

Facial Geometry

Iris

Retinal

Signature

Voice

Ranking Keys:

Not available Low to Medium Medium Medium to High Highest

Cost

Michelle M. Shen

The Promise of Future Technologies

•Biometrics itself is an emerging technology segment.

•Finger-scan technology is undoubtedly at the right above corner of the Visibility-Maturity Quadrant.

•Physiological biometric technologies will still dominate the market in the short to medium term.

•Behavioral biometric technologies are emerging.

•Examples: gait recognition, signature-scan, keystroke-scan, facial movement recognition•Convenience: require minimum user effort and knowledge•No learning curve

•Ability to address the concern of privacy (or securing the secure-source) is one of the key success factors of delivering a biometric solution.

•Prospects who buy into industry standards will impose higher expectations on biometric vendors.

Michelle M. Shen

The Promise of Future Technologies – Gait Recognition

About Gait Recognition

•Gait (a.k.a. body gesture/movement) recognition technology is subset of behavioral biometric recognition. •It recognizes the uniqueness of the ways people walk. •It can detect, classify and identify humans at distances up to 500 feet away under day or night, all-weather conditions.

Applications

•Antiterrorist surveillance system•Medical diagnosis

Maturity

•80%~95% success rate in identifying people, as according to a research project at the Georgia Institute of Technology funded by the Pentagon•Research stage: ~5 years before commercialization.

Key Challenges

•Comparison benchmarks are hard to define (varied by country, culture, region, etc.)•Whether or not 7,000 gigabyte memory bank can tell a person apart from everyone else it has stored •Confuse the computer with mimicry

Michelle M. Shen

The Promise of Future Technologies – Gait Recognition

How It Works

. ...

.. ..

..

..

Scan to Acquire Digitalize to Binarize

Store to Match

Michelle M. Shen

The Promise of Future Technologies – Vein Verification

About Vein Verification

•Vein biometric systems record subcutaneous Infra Red absorption patterns to produce unique and private identification templates for users.•The thickness and location of these veins are believed to be unique enough to an individual to be used to verify a person's identity.

Applications

•Widely used in government, commercial, airport, etc.•More acceptable under certain cultural context (e.g. hygienic concern)

Maturity

•High accuracy: FAR and FRR are 0.0001% and 0.1%, respectively.•Technology is still fairy new and takes time to reach its stability.

Key Challenges

•Effects of aging, heart attacks, and medical problems with one's arteries on the scans has yet to be determined fully.•Requires a large amount of space to mount the device that the entire hand can be scanned which may restrict its usability

Michelle M. Shen

The Promise of Future Technologies – Lip Print ID

About Lip Print Identification

Applications

•Lip print identification is generally acceptable within the forensic science community as a means of positive identification because it appears in the field literature.

Maturity

•Under development.

Key Challenges

•No empirical proof of the study of lip characteristics showing their individuality.•No standards in identifying the unique points of an individual’s lip print.•Limited population – e.g. lip piercing.

•Lip print identification methodology, although seldom used, is very similar to fingerprint comparison and is a known and accepted form of scientific comparison.•Lip prints are like fingerprints in that no friction ridge characteristics- the basis for fingerprint individuality.

Michelle M. Shen

The Promise of Future Technologies – Lip and Facial Movement

About Lip and Facial Movement Analysis

•Usually used together with speech recognition/analysis.•Stand-alone lip or facial movement analysis is still an intact area.

Applications

•Lip and Facial movement are combined to conduct speech analysis.•More acceptable under certain cultural context (e.g. hygienic concern)

Maturity

•Under development.

Key Challenges

•Derivative biometric solution.•Require user efforts.

Michelle M. Shen

More Resources

•“Trends in Biometrics: A Complete White Paper”, by ePolymath Consulting Firm, http://www.epolymath.com/trendsinbiometrics.pdf

•BiometriTech official web site: feature articles by Michelle Shen;

•ePolymath Consulting web site: Sightings page: http://www.ePolymath.com/Sightings.html;

•“Biometrics: Identify Verification in a Networked World”, by Samir Nanavati, Michael Thieme, Raj Nanavati

•Biometric Watch Journal: http://www.biometriwatch.com

•Findbiometrics.com

•Biometric Consortium: http://www.biometrics.org/

•Biometric Digest: http://www.biodigest.com/

Michelle M. Shen

Q & A

Thank You