Nemertes Impact Analysis:

Privately held Key Pair Technologies is releasing a set of virtualization appliances offering web and host single sign-on (SSO), targeting small and mid-sized business (SMB). The offering includes features such as SAML 2.0 support for federated authentication and connectors for Active Director/LDAP, RADIUS, Kerberos-KDC and ODBC credential repositories. These features facilitate federated secure sign-on to software as a service (SaaS) such as Google Apps (NASDAQ:GOOG), Salesforce.com (NYSE:CRM) and Oracle CRM On Demand (NASDAQ:ORCL).

Adoption of SaaS for SMB outpaces adoption by large enterprise with adoption rates of 50% and 42%, respectively. Implementing SSO is security best practice and simplifies support of multiple SaaS.

Impacts:

Enterprises: All-sized organizations should develop an SSO plan for SaaS offerings.

Vendors: Providers of SSO, including CA, IBM, Novell, Quest Software and privately held Imprivata, Ping Identity and Symplified should focus offerings around SMB.

Investors: SSO adoption helps Imprivata, Ping Identity and Symplified.

Ted Ritter, Senior Research Analyst

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