Canadian Companies Tackling Security Risks posed by MP3 Players and Mobile Devices

Poll shows businesses banning personal mobile entertainment devices

July 17, 2006, Toronto, ON: Canadian businesses are finally recognizing the need to protect themselves from risk by monitoring and managing the portable storage devices their employees bring to work, according to a recent national survey conducted by Ipsos Reid and sponsored by Sun Microsystems of Canada Inc.

Poll results showed that 49% of senior leaders in mid- and large-sized businesses across Canada have established policies to prevent personal laptops and USB keys from entering the workplace and 30% have banned MP3 Players, such as iPods.

There is good reason for bosses to be concerned. LexisNexis estimates that a compact flash card, the size of an after-dinner mint, can now hold up to eight gigabytes of information -- approximately a half million pages of text or 800,000 emails - while the top-of-the-line iPod holds 60 gigabytes.

"In today's global enterprise, many executives are aware of the potential risks posed by mobile devices, but they continue to lack the appropriate security measures and policies required to protect themselves from threats," said Andy Canham, President, Sun Microsystems of Canada Inc. "It's good to see more Canadian companies implementing sound practices that reduce their risks, but more needs to be done in light of the growing trend toward increased workforce mobility."

Existing procedures may not be enough to prevent and manage potential attack

While many of the companies polled are undoubtedly taking measures to prevent the risk of data loss due to security breach or theft, only 32% of the executives interviewed believed that their businesses perform at optimum levels to prevent and manage potential attack. Of those polled, approximately seven out of ten executives believe there is room for improvement for preventing risk among a mobile workforce.

Moreover, 17% admitted that they have a very poor understanding of the risks associated with remote or wireless access. Similarly, thirteen percent believe that they are doing a poor job of mitigating risks and 11% are not applying proper procedures to successfully deal with security breaches.

"There seems to be a naivety and lack of understanding about the best practices to prevent serious remote or wireless attacks on a company's IT networks and databases," said David Saffran, Senior Vice President at Ipsos Reid. "With many businesses choosing to operate merely at acceptable levels to mitigate wireless risks, it is debatable whether or not companies could withstand an actual breach."

Importantly, 42% of surveyed executives cited that the greatest negative impact a security breach will have on their operations is theft of customer information.

"Smart enterprises know both security and mobility are good for business," added Andy Canham. "Remote access is critical to business success, but with increasing compliance regulations, Canadian businesses must invest in systemic security practices that ensure they can manage and prevent a variety of potential risks."

Remote Access Increasing
Remote access is becoming increasingly important to Canadian businesses. Nine out of ten businesses (91%) surveyed provide company cell phones to some of their employees, and almost as many companies provide laptops to their employees to access their workplace from external locations. Currently, 22% of the Canadian workforce, on average, has remote access to the corporate Intranet, but this figure is expected to rise to almost 30%, on average, within the next year.

On the flip side, of those companies that did not offer remote access, 72% admitted that security concerns influenced their decision to prevent remote access.

About the Survey:

The research for this study is based on primary data collection. A total of 259 companies were selected to participate in the second quarterly study for the Ipsos Executive IT Panel research program. Data was collected from March to May 2006. One senior respondent was qualified and interviewed from each company. The prerequisite qualification for each respondent was that they be senior decision makers within their company in either an IT or business executive capacity. This included CIOs, CTOs, Directors and Managers; business executives included, CEOs, Presidents, CFOs VPs, LOBs, Directors and Senior Managers.

About Sun Microsystems of Canada Inc.
Sun Microsystems of Canada Inc., a subsidiary of Sun Microsystems, Inc., is headquartered in Markham, Ontario. The company, which employs more than 700 persons, has offices in Montreal, Ottawa, Calgary, Vancouver and Victoria. Sun products and services are also available through Sun Authorized Independent Sales Organizations and Sun(SM) Partner Advantage Program partners across Canada. For more information, visit http://sun.ca

About Sun Microsystems, Inc.
Since its inception in 1982, a singular vision -- "The Network Is The Computer" -- has propelled Sun Microsystems, Inc. (Nasdaq: SUNW) to its position as a leading provider of industrial-strength hardware, software and services that make the Net work. Sun can be found in more than 100 countries and on the World Wide Web at http://sun.com.

About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 300 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

To learn more, please visit www.ipsos.ca.

Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2005, Ipsos generated global revenues of â,¬717.8 million ($853.8 million U.S.).

Visit www.ipsos.com to learn more about Ipsos offerings and capabilities.