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Managed Security Service Market to Reach $17B by 2015

By Narayan Bhat

Market analyst firm Infonetics Research has predicted that software as a service (SaaS) worldwide revenue may grow dramatically over the next few years, with a compound annual growth rate (CAGR) of 23 percent from 2010 to 2015.

The firm recently released its Managed Security Services and SaaS with Service Provider Scorecards report, which analyzes and forecasts the market for SaaS, CPE-, and cloud-based security services.

Revenue for managed security services jumped 12 percent in 2010 and that number is expected to grow by several times over the next five years, with the managed security services market expected to hit $17 billion by 2015 on the backs of cloud and SaaS.

SaaS and cloud-based security services, according to the researcher, are most likely to make up half of the overall managed security services market opportunity by 2015.

"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 Research, in a statement. “Revenue grew 12 percent in 2010 and will grow 62 percent over the next five years, driven by cloud-based services and SaaS.”

Infonetics’ 2010 forecast was 4 percent higher, but there was no decrease in fundamental demand for managed security, just a sluggish global economy.

Managed security services are popular in North America and EMEA, and there is opportunity around the globe, as cloud-based services, and SaaS in particular, are not bounded by borders.

Asia Pacific and Central and Latin America are expected to account for a growing portion of the managed security services market in coming years.

Infonetics Research expects the overall managed security services market, which combines CPE, SaaS and cloud services, to inch close to $17 billion by 2015.

Companies are increasingly turning to security for virtualized environments to prevent threats and prevent inter-virtual machine threats and to maintain secure server configurations.

The report claims to have tracked major telecom service providers including AT&T, T-Systems and China Telecom.

The report forecasts the market for SaaS, CPE-, and cloud-based security services managed by service providers for small, medium, and large businesses, including managed firewalls, content security, intrusion detection and prevention solutions (IDS/IPS), and other security services.


Narayan Bhat is a contributing editor for MSPToday. To read more of Narayan’s articles, please visit his columnist page.

Edited by Carrie Schmelkin

MSPToday Contributor

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