Global Managed Security Services Market to Reach US$11.2 Billion by 2017, According to New Report by Global Industry Analysts, Inc.
The cost benefits that accompany outsourcing network and internet security functions to a third party service provider cannot be undermined, especially against the backdrop of an emerging future scenario of "doing more with less". Although a lesson learnt during the 2007-2009 recession, the strategic value of optimizing the use of existing infrastructure resources and maximizing the returns per dollar invested, will continue to remain of key relevance even into the future. As developed economies come to terms with profligate spending and high debts, the age of unchecked spending, both in the government and corporate sector, is coming to an end and will eventually be replaced by the age of austerity. And doing more with less will remain the mantra of current and the future IT industry. Corporate resources will continue to remain constrained and companies will continue to pursue greater value and cost savings from IT investments.
Currently, the economic consequences of persistently high public debts created by governments as a result of a regime encouraged by the flawed framework for assessing how much countries should borrow, is mirrored in the ongoing European debt crisis and its deleterious impact on growth. Even in the event of the European Union successfully resolving the euro area debt crisis, slower and rather anemic growth will continue to haunt the region even into the future, primarily because the euro crisis in reality masks a deeper financial and economic malaise built through years of unsustainable fiscal policies adopted by spendthrift governments in the euro zone. Companies and enterprises in all industrial sectors are therefore expected to remain prepared for times of scarce financial resources. This post crisis fiscal pain will magnify the cost attractiveness of MSS for companies seeking to invest precious resources in sophisticated yet economical IT infrastructure.
Although the impact of the Euro crisis on the IT industry will be undeniable in the event of an escalation in the crisis, the financial repercussions for companies will nevertheless position MSS as a prime beneficiary of the state of affairs. As witnessed during the US led world economic recession during the period 2007-2009, companies and governments will find the cost advantages of hosted and managed services irresistible. Companies under the pressure of budget cuts will adopt managed services as an easy measure of saving money on IT. A less obvious advantage of the Euro crisis is the fact that businesses and enterprises will become more competitive especially in the area of strategic IT spending. In conclusion, as cost pressures build up in the developed countries, managed services are poised to emerge into one of the few gainers in the myriad vectors that make up the IT industry.
In addition to large companies, security threats are also increasingly being targeted at small and medium businesses (SMBs), bringing the opportunities in the SMB sector into the spotlight. Lower upfront investments and cost reduction benefits will continue to drive the adoption of MSS in this sector, thus expanding the market's revenue generating potential. In the upcoming years, MSS is forecast to expand from managing and maintaining firewalls and anti-viruses to include a comprehensive crisis management program. Enterprises are demanding security services that can ensure quick recovery and provide continued services in the aftermath of a large-scale disruption either due to natural calamities or terrorist activities or business failure.
The managed security services (MSS) industry is witnessing a shift in technology towards intrusion prevention systems (IPS) from the conventional intrusion detection systems (IDS), signifying that the managed security service providers (MSSPs) and their customers are proactively inclined towards preventive measures, in battling out threats such as pharming, phishing, phlooding and distributed denial-of-service (DDoS). With more number of businesses looking to safeguard their networks and with new legislations on information security underway, the market for MSS is poised to benefit.
Growth is also being driven by the regulatory clampdown on data security. With more and more companies adopting digital electronic data and the Internet for carrying out business transactions, solely relying on information technology for managing information, government agencies and regulatory bodies are increasingly tightening the screws on security and safety requirements to safeguard businesses against the dangers of data risks. The importance of complying with the full set of government and authority regulations cannot be undermined, since a breach could invite financial and punitive consequences. Companies are therefore required to comply with regulatory requirements and maintain e-mails, network logs and other backup data and records. The dependence on leveraging the expertise of MSSPs for process automation, documentation, and extensive incident reporting needs, among others, is expected to only grow stronger in the future. In this regard, managed security event correlation (SEC) systems, also known as security incident and event management (SIEM), or security information management (SIM), represents a lucrative market offering.
Also poised to generate revenue spinning opportunities are managed security services for mobile security, given the spiraling use of smartphones, personal digital assistants, and tablet PCs for performing a myriad range of activities, especially business functions. Also, mobile networks are currently at their tipping point with exploding data traffic triggering the collapse of mobile network operators (MNOs) traditional walled garden approach. Mobile networks are now migrating towards the concept of "open garden" wherein customers are given unhindered access to all available services and content. And as cellular network giants throw open their networks to enable interoperability between proprietary network domains, the open networks concept opens up potential risk avenues from a security and privacy perspective. As proprietary network perimeters dissolve, security issues will rise to be of paramount importance to mobile network operators. Managed security services for mobile devices and mobile network operators/service providers therefore stand to gain in the immediate future.
As stated by the new market research report on Managed Security Services, North America and Asia-Pacific remain two equally large markets worldwide. Asia-Pacific is forecast to witness the strongest growth with a projected CAGR of 19.7%, over the analysis period.
Major players in the marketplace include AT&T, Avaya, Check Point Software Technologies, Cisco Systems, Fortinet Inc., IBM-ISS, Juniper Networks, McAfee, Inc., Qualys, SonicWALL, Symantec, UBIqube Solutions, Unisys Corporation, and WatchGuard Technologies Inc., among others.
The research report titled "Managed Security Services: A Global Strategic Business Report" announced by Global Industry Analysts, Inc., provides a comprehensive review of the recent market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides global market estimates and projections in US$ Million for major geographic markets including North America, Europe, Asia-Pacific and Rest of World. Service segments analyzed under the report include: Firewall/VPN Services, IDS/IPS, Assessment Services, and Others. In addition, the report also provides analytics in terms of following end-use sectors: Financial, Government, Healthcare, Manufacturing, Utilities, and Others.
For more details about this comprehensive market research report, please visit –
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
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