A new research report from Global Industry Analysts, Inc. reveals the market for managed security services (MSS) will hit $8.4 billion by 2015. Organizations are increasingly aware of the importance of network security and risk management and are turning to service providers to manage their services, creating a large market for specialized security providers.
The report shows increased adoption of hosted security systems by small and medium-sized businesses, enabling significant cost savings. The market is expected to expand from management and maintenance of firewalls and antivirus to include a comprehensive crisis management program that will include tracking emails, network logs and other data.
While the MSS market experienced a dip in growth in 2008, it has been boosted by enterprises seeking to cut costs and free up resources by shifting from self-maintained security solutions toward managed offerings.
Services like cloud computing and SaaS (News - Alert) are reducing operating costs and upfront capital expenditure, and have boosted MSS adoption rates. Overall customer perceptions of greater ID thefts and fraud have also played a part in the shift toward managed offerings.
The worldwide MSS market is comprised of a number of players, ranging from specialized MSSPs to more traditional telcos, system integrators, VARs, IT outsourcing companies and security product vendors. Telcos comprise the fastest growing segment of MSS providers and are expected to have a strong impact on the market as they leverage their huge customer bases to lower costs.
Major IT infrastructure players have also acquired a number of MSSPs and have incorporated their competencies into their larger business offerings. Some of the larger players include AT&T, Avaya, Check Point Software Technologies, Cisco Systems (News - Alert), Fortinet Inc, IBM-ISS, Juniper Networks, McAfee, Inc., Nortel Networks, Qualys, SonicWALL, Symantec, UBIqube Solutions, Unisys Corporation, VeriSign and WatchGuard Technologies (News - Alert) Inc.
The financial sector represents the largest adopter of MSS in North America, with new legislation creating a need for greater security and compliance. IDS/IPS services are the fastest growing segment, led by an industry shift from conventional intrusion detection systems (IDS) toward intrusion prevention systems (IPS). North America dominates the market for firewall and VPN services as well, while the average European MSS contract size is higher in value than both North American and Asian-Pacific contracts.
IT infrastructure and communications services providers comprise the majority of the MSS market in Europe, with a substantial niche for security specialists. The Asia-Pacific market is expected to become the largest global MSS player, with China and India leading the way.
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