RCW Mirus has compiled a comprehensive research report based on sectors within the security industry that, we believe, have the greatest growth potential and overall market impact, including Automatic Identification (Auto-ID), CCTV & Surveillance and Security Services.

Those focused on the enterprise software industry and the Customer Relationship Management (CRM) software space have been left waiting for what everyone has been expecting all along--consolidation. This inevitable dance has been postponed for the better part of three years with the exception of select deals here and there. Why do we view consolidation as inevitable and why has it been delayed so long? These are some of the questions that we will address in this CRM Spotlight.

RCW Mirus expects consolidation in the security market to accelerate in 2002, as conglomerates look to bolster their security stance and large, pure security plays seek to extend their geographic reach and augment the depth of their products and services.

Simply stated, optimizing the way businesses work, interact, and communicate with employees, customers, suppliers, and other business partners on the web is a priority for decision makers holding the IT purse strings. With research organizations, like The Yankee Group, projecting that corporations stand to save an estimated $11 billion in 2001 and $84 billion in 2005 by improving communication and interaction among employees, customers and extended enterprise partners, we begin to understand why. As a result, the collaborative software space is on track to hit revenues of $2.5 billion in 2001 and is expected to grow to $7.3 billion by 2003, representing a CAGR of 70%. Moreover, despite lower valuations there are an increasing number of M&A transactions and only a slight decrease in the number of private equity financings within the collaboration sector.

Small steel service companies and metal fabricators have fallen on tough times in 2001 following several years of strong demand and growth opportunities. Industry consolidators, which were once fueled by strong economic conditions, have slowed their "growth through acquisition" strategy. However, many specialty fabricators and steel service companies are still actively seeking and completing strategic transactions to strengthen their market position.