The rise of the internet has brought about numerous benefits humans never thought possible, while it has also enabled multi-billion dollar businesses that wouldn't have been conceivable even a decade ago.
However, it has also created an enormous threat, as has been highlighted by the numerous hacks on individuals and corporations which threaten not only our privacy, but also our security.
Indeed, The Australian Financial Review this morning highlighted a 'vast, multi-year criminal enterprise' that has hacked at least nine 'big financial and publishing firms' in the United States, stealing information on 100 million of their customers.
For many, that will hardly come as a surprise following the high-profile cyber-attacks on companies like Target in the United States; Sony over its planned release of the controversial movie, The Interview; as well as 'extramarital dating' website Ashley Madison which dominated headlines around the world this year.
These incidents are becoming increasingly common, causing enormous financial and legal costs, reputational damage and service disruption. It also shows just how fragile the internet can be and highlights the desperate need for protection against such incidents.
Indeed, Gartner predicted last year that total information security spending would grow 8.2% in 2015 to reach US$76.9 billion while it believes more than half of organisations will use security services firms by 2018. In other words, there is an enormous opportunity there for a number of companies to capitalise on.
Although many of these companies reside overseas, particularly in the United States, there are a number of Australian businesses that are also well positioned to grow.
Senetas Corporation Limited (ASX: SEN) and Prophecy International Holdings Limited (ASX: PRO) are two such companies.
Senetas provides high-speed data encryption hardware to governments and businesses around the world, designed to protect data travelling between sites rather than just while the data is at rest. The company has also been awarded NATO Certification, providing it with greater recognition amongst customers and better protection from would-be rivals.
Prophecy International, on the other hand, is an international software developer which makes most of its money by selling Snare – a network monitoring tool for which demand has absolutely exploded.
Finally, Future Fibre Technologies Ltd (ASX: FFT) is another company to keep an eye on. It develops and manufactures fence-mounted fibre optic perimeter intrusion detection systems designed to protect important infrastructure such as airports, pipelines and military bases. Protection of data cables is also possible.
Of course, there are risks involved with investing in any of these companies but I expect there could be more growth in store over the coming years.
