VeriSign, AOL to Offer Encrypted Instant Messaging

[BigBlueBall News]

Reuters

May 9, 2002

REDWOOD CITY, Calif. (Reuters) - VeriSign Inc. and AOL Time Warner Inc. on Thursday announced a partnership to offer encoded chat messages through AOL Instant Messenger, the same day rival Microsoft Corp. warned users of a security hole in its own instant messaging service.

VeriSign will issue security credentials to corporations for authenticating employees who want to send and receive encrypted messages over AOL Instant Messenger (AIM), David Gang, a product strategy manager at AOL, said during VeriSign’s analyst day.

Dubbed "Enterprise AIM," the service will go into beta testing before the end of May, Gang said.

Corporate users represent about 20 percent to 25 percent of AIM’s more than 150 million registered users, according to Gang.

Security concerns about instant messaging and the fact that it is not that easy to save the messages has held back its use in corporations.

Gene Munster, analyst at US Bancorp Piper Jaffray, was skeptical of the need or demand for encrypted instant messaging, noting that encrypted e-mail isn’t even all that common and that AIM is free.

Earlier on Thursday, Microsoft announced a patch for a security flaw related to its MSN Messenger program that could allow an attacker to have broad access to a victim’s computer.