MSP Today Expert Feature
April 06, 2011

Cloud/SaaS Market to Near $17 Billion by 2015 According to Infonetics Research

A new report from Infonetics Research shows the cloud and SaaS (News - Alert) market will reach nearly $17 billion by 2015. The Managed Security Services and SaaS with Service Provider Scorecards reports, analyzes and forecasts the market for SaaS, CPE- and cloud-based security services. It examines solutions managed by service providers for small, medium and large businesses, and includes managed firewalls, content security, intrusion detection and prevention solutions (IDS/IPS) and other security services.

The report offers market size, forecasts through 2015 and analysis of managed security services based on a number of criteria. These include technology, service type and size of the organization. The Infonetics (News - Alert) service features two service provider scorecards for the security SaaS market, including one for messaging security players and one for Web security players. These analyze and rank vendors based on their installed base, security reputation, market strategy, financial stability, service capabilities and support options.

According to the Infonetics findings, SaaS and cloud-based security services will make up nearly half of the managed security services market by 2015. SaaS revenue will grow dramatically worldwide, with a CAGR of 23 percent from 2010 to 2015. And the overall managed security services market, which includes CPE, SaaS and cloud services, will reach nearly $17 billion by 2015.

The report shows that while security services are gaining popularity in North America and the EMEA, there is a global opportunity for cloud-based services and SaaS in particular. Central and Latin America and the Asia Pacific region are expected to make up a growing portion of the managed security services market during the next few years.

The report tracks a wide range of companies including major telecom service providers, large hosting and Internet content providers that offer security services, and specialized security service providers. It also tracks security SaaS vendors.

"2010 was a good year for managed security services, which, for the most part, met our expectations for buyer uptake and provider innovations," said Jeff Wilson, principal analyst for security at Infonetics. "Revenue grew 12 percent in 2010 and will grow 62 percent over the next five years, driven by cloud-based services and SaaS. Our 2010 forecast was four-percent high, but there was no decrease in fundamental demand for managed security, just a sluggish global economy."

Edited by Janice McDuffee