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Firewall Manufacturers Tap a Growing Market

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BLOOMBERG NEWS

In a typical month, would-be hackers probe Bob Larribeau’s computer a dozen times.

Larribeau isn’t a bank executive or a high school principal. He doesn’t run a fancy Web site such as Yahoo Inc. What makes the self-employed computer consultant an attractive target is his high-speed Internet connection.

High-speed links through digital subscriber line services or cable modems provide users with an always-on connection to the Internet. Peril accompanies that convenience, though, because a static link is a stationary bull’s-eye for hackers prowling online. Computer criminals can hack into personal files or remotely control compromised computers to wage attacks similar to those that disabled Yahoo earlier this year.

Users who log on through regular phone lines aren’t in any special danger, because they frequently hop on and off the Internet.

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Larribeau said he thwarts outsiders trying to penetrate his computer by using a software program called a firewall, which blocks suspicious programs and probes. Until now, firewalls have been used mainly to protect computer networks at big corporations and government organizations. Computer security firms are now betting that consumers and small-business owners such as Larribeau are the next big market.

“I would recommend a firewall for anyone in a cable modem or DSL environment,” said Larribeau, who is also chairman of the California Broadband Users Group.

That endorsement is a melody to the ears of companies that sell so-called personal firewalls. In the last few months, the security firms have prepared for the battle for consumers and small businesses by spinning off subsidiaries, selling stock to the public via initial offerings and acquiring rivals.

“It’s a huge opportunity and we’re right at the cusp of the growth,” said Stephen Cullen, a senior vice president for consumer products with security software maker Symantec Corp.

Analysts say there are two kinds of personal firewalls, which range in price from $40 to $400: Some protect a network of multiple computers, and others are designed for a single PC. To make things even more confusing, security firms are taking several different approaches to firewalls, giving users a wide array of choices.

WatchGuard Technologies Inc. and rival SonicWall Inc. market firewall devices the size of portable CD players that screen Internet traffic for small computer networks in homes or offices. Symantec and closely held firms such as Network Ice Corp. provide packaged software programs that users install on PCs.

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Yet firewalls have their downside. The software can slow Internet surfing by being overprotective and frequently warning users about files that prove to be safe. Firewalls also are extremely technical and users who set them up improperly often leave loopholes that hackers can easily exploit.

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