Event
Summary
On October
19, Aladdin Knowledge Systems ( Nasdaq: ALDN ), a global leader in the field
of Internet content and software security, announced with Packard Bell NEC International
( Nasdaq: NIPNY ), the leading brand of consumer PCs in Europe, an agreement
to bundle approximately 50,000 eTokens on Packard Bell PCs. The eTokens, or
Internet keys, will come in different colors so that all family members can
have a unique color code. Retail shops in Belgium expect to have eTokenized
PCs on their shelves by November.
Etokens store
private keys, passwords, and electronic certificates on the Universal Serial
Bus (USB) and ensure that only legitimate users gain access to PC or network
resources as soon as it is inserted into a USB port. This marks the first time
a mainstream PC vendor has bundled a USB-Enabled Security Device on low-end
desktop systems. USB is a new port standard for computer and peripheral connectivity,
and is now standard on all new PCs and laptops. USB was developed through collaboration
by Intel, Digital, Microsoft, IBM, Compaq and NEC, all of which are mainstream
PC hardware vendors. Apple's new iMac comes equipped with a USB port as well.
Recently, the
eToken won the prestigious European IST Award for best European innovative information
technology products in 1999.
Market
Impact
The eToken
will enhance system and user security by adding encryption, password storage,
private keys, and digital certificates. eToken functionality enables companies
and consumers to secure their desktops and eliminate costly security deployment
initiatives. Aside from protecting against internet ecommerce, etokens improve
the sharing of information safely between family members sharing the same PC,
protecting the confidential information of each person. eTokenized PCs are among
the first Ecommerce Desktops to hit the streets, and will allow users to increase
the level of security in purchases and financial transactions that they make
over the internet.
As concern
for electronic security gains more exposure, putting eTokens on desktops is
what hardware vendors need to do to rekindle a slumping PC market. Expect other
vendors to follow Packard Bell NEC's lead in eToken deployment. By late 2000,
various Apple, Compaq, and IBM PCs will all come bundled with eTokens.