Feb 5, 2001|
Digital CA’s: Not chartered accountants
With e-commerce transactions all set to boom, the next imperative is security. The issues that need to be addressed include authentication, integrity, confidentiality, non-repudiability and auditing. Authentication deals with establishing credibility of the transacting partner. Integrity and confidentiality deals with keeping data transferred between partners intact and private. Non-repudiability deals with establishing whether a party denying a transaction is true or not. Auditing keeps track of transaction that take place.
Technology can to a great extent address integrity with the help of encryption but what about authentication? How can you be sure that the party you are dealing with is to be trusted? The answer is public key infrastructure (PKI). Using PKI, users can transact through the Internet securely. This is done using a public and a private cryptographic key pair that is obtained and shared through a trusted authority. This trusted authority is known as a certifying authority (CA). The CA issues a digital certificate that can identify an individual or an organization and directory services that can store and, when necessary, revoke the certificates.
Most CAs charge on a per-certificate or per-user basis. Since certificates are issued with a built-in expiration date (usually 6, 12 or 24 months), the model for recurring revenue is quite straightforward. This definitely means big business considering the volume of e-commerce in India. According to Gartner, currently the industry size is about US$ 1.1 bn globally.
|1998 - 99
|1999 - 00
|2000 - 01
|2001 - 02
|2002 - 03
|Source : NASSCOM, Rs m
With the Indian Government recognizing digital certificates as a form of authentication to identity, the race is on to capture the market. The licenses for certifying authorities are being issued by Central Certifying Authority (CCA). CCA is empanelling auditors, who will audit the processes and technology of the CAs. Once the auditors are empanelled the CCA will issue guidelines for the CAs. Those who confirm to the standards proposed by the guidelines will be issued licenses. Considering the responsibility on the CA the licensing the government will be cautious while issuing licenses and this will take its own time.
The companies that are willing to acquire CA licenses include Satyam Infoway, HFCL, HDFC Bank, ICICI Bank and Citibank. (The banks having their payments gateways will definitely have an upper hand). Satyam Infoway has tied up with Verisign, one of the global leaders in the area.
This is one area that the companies can bank on to keep their cash registers ringing. Once the government empanels the race will begin. Till then companies, in the build up to the final race, will consolidate on technology and processes.
More Views on News
Aug 2, 2017
A better than expected turnaround in performance results in a change in view.
Jul 27, 2017
Digital services drive growth for Wipro in 1QFY18.
Jul 14, 2017
Infosys starts FY18 on an encouraging note with a stable performance.
Aug 5, 2017
How to get exclusive insider recommendations from Ankit Shah.
Jul 14, 2017
TCS starts FY18 decently despite an adverse currency impact.
More Views on News
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
'Yes, it looks like a bubble. And, yes, it's like buying a lottery ticket. But there's something happening that has never happened before. It's an evolutionary leap in money itself.'
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 10, 2017
Bitcoin hits an all-time high, is there more upside left?
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407