Subscribe to our e-mail newsletters
For more info on a specific newsletter, click the title. Details will be displayed in a new window.
Finance
Security
Computerworld Daily News (First Look and Wrap-Up)
Computerworld Blogs Newsletter
The Weekly Top 10
More E-Mail Newsletters 
Computerworld 2007Subscribe to Computerworld
40 years of the most authoritative source of news and information for IT leaders.

The Speed Of Money

The Internet is bringing about massive changes in the way capital flows, which could translate into an economic boom of global proportions.
 

Sign up to receive Security Resource Alerts

August 14, 2000 (Computerworld) -- The road from paper to virtual money has been blocked at every turn by cultural and technological barriers. But a new spirit of both cooperation and competition between fast young start-ups and traditional financial institutions is beginning to push some of these barriers aside.

Within five years, the vast majority of business-to-business transactions is expected to be electronic, analysts say, leading to faster payments, lower costs and, potentially, less fraud as stringent identity authentication and credit risk-assessment procedures become easier and less expensive.

These savings, combined with faster collections, integration with back-end procurement and financial systems, and access to a larger supplier and customer base, could expand the U.S. economic boom to the rest of the world, analysts say.

"Money is always in search of the place where it gets the best return," says Thornton May, until recently a futurist at Cambridge Technology Partners Inc. in Cambridge, Mass., and an occasional Computerworld columnist.

The increased access to market information made possible by the Internet, along with the ease of making electronic payments, will make it possible for companies to change suppliers or distributors in real time on a global scale.

"You will be able to exit bad resource allocations more quickly, which is really what's driving much of the New Economy right now," he says. "It's almost real-time feedback: That didn't work; stop; try again."

Security Barriers

While virtual transactions are gaining steam, the vast majority of payments are still made with checks.

According to Stamford, Conn.-based Gartner Group Inc., 14% of business-to-business payments are made electronically. But that figure is expected to grow to 50% by 2009, says Gartner analyst Avivah Litan.

The biggest reason for the resistance to virtual payments is security, according to May. Companies, particularly those making large transactions, are concerned about the integrity of financial information that travels over the Internet, he says.

"Companies are going to spend more on digital security [than Y2k]," says May. "Probably one and a half times more."

The threat isn't only from hackers breaking into sensitive systems.

Continued...
1 | 2 | 3 | 4 | NEXT  



Print this Story Send Us Feedback E-mail this Story Digg! Digg this Story Slashdot this Story
"A video is making the rounds showing how Vista SP1 has significantly improved Vista's immensely annoying User Account Control (UAC)...." Read more...
"So are you getting excited about a nice, long weekend for Memorial Day? Well, before you start cooking hot dogs..." Read more...
Read more Security posts or See all Blogs
Mozilla launches Firefox 3.0 RC1 early
Microsoft: Don't misunderstand UAC, other Vista features
HP confirms XP SP3 endless reboot snafu, promises patch
More top stories...
Microsoft pulls Windows Home Server backup feature
Yahoo tells Icahn that its own board knows best
Tools circulate that crack Debian, Ubuntu keys
Specialists have retrieved about 99% of the data on a disk drive on board the crashed space shuttle Columbia. Don't miss the photographs of the recovered drive.
These big ideas were supposed to revolutionize technology, but they never actually appeared. In a few cases, you'll be glad they didn't.
Nearly 20 years after the first Internet worm, Steven J. Vaughan-Nichols takes stock of the malware/anti-malware landscape and spotlights how the two sides are approaching the battle.
Though some thought it was released too soon, Mac OS X 10.5 has matured into a solid operating system, says reviewer Michael DeAgonia.
Reviews, analyses, how-tos, visual tours, hot issues and predictions about Microsoft's new OS.
Four years from now, the IT field will be a vastly different place. Will you be ready?
All Zones
Application Performance Zone
Enterprise-Class Security Zone
Enterprise Solutions Zone
The File Data Management Zone
Grid Computing on Windows Zone
Security Management Zone
ITIL Best Practices Zone
The SAS Zone
Storage Virtualization Zone
The Data Center Management Zone

Ads by TechWords

See your link here
Why SaaS is Vital to Email and Web Security
Why SaaS is Vital to Email and Web Security
Download this webcast, free, compilments of Webroot Software
Go to the webcast 
Computerworld Executive Bulletin: Building a Robust Antivirus Defense
Download this Executive Bulletin (a $49.95 value) for free, compliments of MessageLabs.
(Source: MessageLabs) Antivirus software alone isn't enough to prevent today's speedy, sophisticated virus attacks. Security managers should consider multitiered approaches that include behavior scanning, appliances that check e-mail for worms, and restricting user access to dangerous Web sites. Download this Executive Bulletin (a $49.95 value) for free, compliments of MessageLabs, to learn more.
Download this executive briefing download
Eliminate SPAM, Gain Productivity
Get this white paper now!
(Source: MessageLabs) Learn all about the dangers and the costs of spam in all its forms - from stock-touting to spreadsheet. Also, understand the drawbacks of traditional hardware- and software-based defenses - and the unique benefits of MessageLabs multi-layered, managed Anti-Spam solution; as illustrated by a real-world case study where MessageLabs stopped spam cold.
Download this white paper go
White Papers
Read up on the latest ideas and technologies from companies that sell hardware, software and services.
Securing Financial Services Beyond the Perimeter
Intercept Spam & Viruses With MessageLabs
Meeting PCI Compliance with SonicWALL Global Management System
View more whitepapers 
Layered Security Solutions
Although basic network security issues have changed very little over the past decade, the network security landscape has changed dramatically. Today's IT professionals still have the primary responsibility of protecting the confidentiality of corporate information, preventing unauthorized access, and defending the network against attacks. Security experts and analysts agree that a security solution comprised of multiple layers is the best defense against today's increasingly sophisticated attacks.

Download this white paper 
Universal Threat Management - Because Conventional UTM is Not Enough!
This white paper, written by Mark Bouchard of Missing Link Security Services, examines the challenges confronting today's enterprises with respect to managing threats on a network. It also discusses the need for "Universal Threat Management", which is a security solution approach for all physical locations within an enterprise that require threat protection.

Download this white paper 
Selecting the Right Threat Management Solution
This short demo will guide you through key considerations for selecting a solution to manage threats on a network. Learn about the popularity of Unified Threat Management (UTM), and how it fits into an overall security solution. Explore critical elements of a network-wide solution for multisite and large network-size deployments and identify the four key features of a threat management solution.

View this demo