MSP Today Expert Feature
September 28, 2011

Infonetics Report Shows Managed Security Services Will Double Despite Cool Economic Climate

Infonetics Research (News - Alert) has offered a preview of its Managed Security Services and SaaS report, showing the market segment is expected to double between 2011 and 2015 despite the cool economic climate. The report analyzes and forecasts the market for security-as-a-service (SaaS (News - Alert)) and CPE- and cloud-based security services managed by service providers for small, medium and large businesses.

According to Jeff Wilson, principal analyst for security at Infonetics, the managed security services market will reach $16.8 billion by 2015, with the greatest growth coming from the SaaS segment. The market is expected to grow around 13 percent in 2011 alone.

The report offers market size, forecasts and analysis for managed security services through 2015. Information is broken down by technologies like managed firewalls, content security and IDS/IPS. It is also categorized by service type, such as CPE-based, cloud-based or security-as-a-service, as well as size of the organization.

It features two service provider scorecards for the security SaaS market. One is geared toward messaging security players and the other is focused on Web security players, analyzing and ranking vendors based on a number of factors including installed base, security reputation, financial stability, market strategy, service capabilities and support options.

The report shows that the security SaaS segment of the market will more than double between 2011 and 2015. This will be driven by companies keeping up with the short window they have to protect themselves against Web threats. It will also be driven by protecting a geographically diverse user base that needs to access corporate data and applications from a large number of devices, including smartphones, tablets, laptops and kiosks.

Infonetics also finds that CPE-based security services revenue will drop to 54 percent of the total managed security market by 2015. In that same period, cloud-based services and SaaS are expected to grow to 46 percent, up from 38 percent in 2010.

Small and medium-sized organizations are also increasing spending on managed security services, and Infonetics expects those organizations to spend the same amount on security services by 2015. Small organizations are also expected to grow their spending to comprise more than a quarter of the global market.

"Despite the global economic meltdown that started in mid-2008, the security services market is strong and growing, with demand driven by the proliferation of security threats, growth in the use of mobile devices, and the shift to the cloud," said Wilson. "It's often cheaper for companies to hire a service provider to manage their security than to do it themselves, and with the growing complexity of security solutions, this outsourcing trend will continue."

Edited by Rich Steeves