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Danger Lurking Inside Your Wristwatch

As I mentioned on Wednesday, Big Data is the epitome of a disruptive technology.

It’s changing the world to its very core. And it’s expanding at warp speed.

Last year, for example, the number of internet users jumped by 8.8% to 2.4 billion. And as web connectivity through mobile devices continues to grow, we’re creating massive amounts of data. The amount of digital information created and shared this year is expected to hit four zettabytes, rising to eight zettabytes by 2015.

Add the growing wearable technology field into the mix (like smart glasses and smart watches) and we’ll see an even greater data explosion over the next few years.

The digitization of the world is fantastically convenient, of course. But there’s a danger…

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More data means more storage requirements. And as society continues to evolve toward the cloud, our personal, most intimate details – from our identity, location, banking details, and health records – are getting shot into cyberspace and stored in massive servers owned by major corporations.

Heck, even wristwatches will soon store your personal data. Trust me on that.

Needless to say, it’s imperative that all this private information is stored safely and securely, away from would-be thieves… or the prying eyes of the government.

Rage Against the Government Machine

You don’t have to look far to understand how concerned Americans are about their privacy and the security of their data. Particularly as we continue to hear revelations into the extent of government surveillance.

But Americans aren’t alone in their distrust of government agencies. It’s happening overseas, too.

For example, Europe and Brazil are in deep talks about how they can cut their data ties with Silicon Valley multinationals. They’re discussing changes to their data-sharing policies that, if passed, will cost Silicon Valley billions in annual revenue.

That is, unless we come up with a better solution first…

Enter, Zix Corporation (ZIXI).

Dallas, Texas: The Hub of U.S. Data Protection

Given the world’s fears about online privacy and the proliferation of cyber-crime and government surveillance, it’s no surprise that internet security is an ultra-high-demand area – a trend that will continue for many years to come.

In fact, technology analysis and forecasting firm, Markets and Markets, says internet security will balloon to an estimated $120-billion market by 2017 – a whopping 87% growth spike from $64 billion in 2011. That’s also 10% of the total $1.15-trillion worldwide information technology market.

And within this massive market, Zix is quietly disrupting the data-encryption industry in a major way – one in dire need of a little shaking up.

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Founded in 1983, and based in Dallas, Zix provides email encryption and data security solutions to major banks, hospitals, insurance companies and government agencies.

In fact, its software is so effective, the company leads its field in contract work and customer retention with those major industries I just listed. They rely on Zix for their Big Data protection – and Zix relies on them for a recurring and predictable revenue stream.

Revenue that grew by 10% to $47.5 million in the last quarter, versus a year earlier, resulting in a 63% jump in net profit. Zix’s overall profit margin sits at a healthy 20%, with no debt.

Even better… the company continues to add new business at a fierce rate. With 38 million existing members, it’s adding 100,000 more every week. In fact, Zix is pulling in so much business, it has $64.2-million worth of backlog sales.

At a time when we’re creating ever-increasing amounts of data – with more of it stored in the cloud – our data protection has never been more crucial. That’s why business is booming for Zix.

Yet this is merely the tip of the iceberg, given the Big Data projections for the next few years. Come 2017 – when Big Data is the most heavily guarded commodity around – you’ll wish you spent the $4.40 a share to buy Zix.

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Your eyes in the Pipeline,

Marty Biancuzzo

Marty Biancuzzo

, Technology Analyst

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