Cryptography standards are needed to create interoperability in the information security world. Essentially they are conditions and protocols set forth to allow uniformity within communication, transactions and virtually all computer activity. The continual evolution of information technology motivates the development of more standards, which in turn helps guide this evolution.
The main motivation behind standards is to allow technology from different manufacturers to "speak the same language", that is, to interact effectively. Perhaps this is best seen in the familiar standard VHS for video cassette recorders (VCRs). A few years ago there were two competing standards in the VCR industry, VHS and BETA. A VHS tape could not be played in a BETA machine and vice versa; they were incompatible formats. Imagine the chaos if all VCR manufacturers had different formats. People could only rent movies that were available on the format compatible with their VCR. Standards are necessary to insure that products from different companies are compatible.
In cryptography, standardization serves an additional purpose; it can serve as a proving ground for cryptographic techniques because complex protocols are prone to design flaws. By establishing a well-examined standard, the industry can produce a more trustworthy product. Even a safe protocol is more trusted by customers after it becomes a standard, because of the ratification process involved.
The government, private industry, and other organizations contribute to the vast collection of standards on cryptography. A few of these are ISO, ANSI, IEEE, NIST, and IETF (see Section 5.3). There are many types of standards, some used within the banking industry, some internationally and others within the government. Standardization helps developers design new products. Instead of spending time developing a new standard, they can follow a pre-existing standard throughout the development process. With this process in place consumers have the chance to choose among competing products or services.