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Issue link: https://digital.macdirectory.com/i/90549
INTERVIEW APPLE: A STEP CLOSER TOWARD AN INTEGRATED MOBILE PAYMENT MARKET INTERVIEW BY MARKIN ABRAS been shown to have security flaws on Android. How should Apple handle these security concerns with the purchase of AuthenTec? In August, Apple paid $8 a share to purchase AuthenTec for $356 million, in a strategic move designed to further position the iPhone in the center of the electronic payment market. AuthenTec, headquartered in Florida, makes sensor chips that are used in personal and mobile devices. Its fingerprint security technology is licensed worldwide and is currently used by several of Apple's biggest competitors, including Samsung, HP and Dell for its desktop computers. Its fingerprint technology is also used in mobile phones in Japan in order to authenticate mobile payments. MacDirectoryspoke with Karl Volkman, chief technology officer of SRV Network, Inc. , to further understand how Apple will position itself in the digital payment market. MacDirectory > Apple's offer price to acquire AuthenTec appears low according to some stock analysts. Do you fear this will result in opportunities for competing bids? Karl Volkman > Yes, there may be competing offers and this could result in a bidding war and perhaps the deal falling through. Apple, however, is obviously committed to enhancing its devices' security and will not be deterred if this does happen. If this does occur, they will find a different avenue to their intended result. MD > Do you foresee antitrust issues related to this purchase? KV > I am not a lawyer and cannot speculate on the actual legal view. As a layman, I most definitely perceive some sort of reaction from the industry in challenging this move. MD > How will Apple use AuthenTec's technology in its iPhone and other Apple products? Apple has not disclosed any information on how it will use this technology. KV > It would seem logical that biometric security (touch, speech, etc.) will be used in all of their devices. Touch verification would seem the most logical. MD > Near Field Communications, or NFC, technology has KV > Typically, these types of issues are handled by addressing the major flaws in the current, competing technology and trumpeting this to the consumer. The focal point here is that Apple is selling to consumers and they must be wooed. As long as the consumer thinks the technology is better, they will be sold. All technology has been a process of leapfrog among the technological competitors. MD > Passbook software is going to be released this fall in iOS 6, enabling Apple to officially get into the mobile payment entry market. Will AuthenTec technology be featured in Passbook? KV > It would certainly make sense to leverage this technology for the mobile payment option, but it would be extremely difficult to acquire the company and integrate the technology to meet the fall release date. MD > The number of iPhones in the enterprise has doubled from a year ago. In a way, Apple is replacing Research in Motion's BlackBerry. How will the AuthenTec acquisition help Apple get into the enterprise market? KV > The enterprise market looks for good business features (i.e., email, vertical software) with full back office integration (i.e. Exchange) all managed easily and centrally while being totally secure. Obviously, the AuthenTec acquisition will add to the security requirement; however, their products have been mostly personal in focus and will need to have enterprise management features added. Karl Volkman, the chief technology officer of SRV Network, Inc., based in Chicago, Illinois, is an IT professional with over 30 years of experience. Prior to his position at SRV Network, Volkman was the director of technology for New Lenox School District 122 in Illinois, chief information officer of the Habitat Company in Chicago, and the manager of networks & communications for John Nuveen kman's certifications include HP, Microsoft, Cisco, Adtran, Objectworld, and Cymphonix. His capabilities include IT Management, Planning and Technician, Telecomm Technician, Programmer, DBA, and Technology Instruction. and Company. Vol 48 MacDirectory