As long as cyber threats continue to proliferate, prospects for global managed security service providers (MSSPs) look upbeat. Cyber crime assumes alarming proportions, threatening organizations across all verticals. Enterprises are obliged to comply with stringent regulations to maintain strong security posture. Moreover, the difficult economic climate has forced enterprises to restrain their IT spending.
Outsourcing security to an MSSP will enable an organization to focus on core business processes. Lack of expertise is another factor fueling market growth. MSSP vendors are becoming the preferred solutions for businesses that have shortage of expertise.
New analysis from Frost & Sullivan (networksecurity.frost.com), Global Managed Security Service Providers Rollup, finds that the market earned revenues of over $4,476.8 million in 2009 and estimates this to reach $14,716.0 million in 2016.
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"Vendors in this space have evolved a great deal, offering a range of services while maintaining competitive levels of differentiation and keeping prices under control," says Frost & Sullivan Research Analyst Martha Vazquez. "Services have diversified to offer customer premise equipment (CPE)/managed monitoring and hosting, and assessment/professional services."
Although MSSPs help organizations comply with regulations, they are hesitant to go ahead with the implementation of these services. Companies that have not experienced a serious breach have unrealistic views on the ROI benefits that these services offer.
"There is still a lack of information with regards to the costs incurred by serious data breaches and the pressing need for ramping up security, particularly in light of the slow economy," explains Vazquez. "Further education will need to be addressed for organizations to become more at ease with acknowledging the benefits obtained from outsourcing security to an MSSP."
To remain competitive in the market, MSSPs must focus on diversifying security portfolios and rolling out cost-efficient solutions. Budgets were tighter in 2009; however, trends indicate that organizations are likely to exhibit a greater acceptance of the MSSP model than in the past. As a result, outsourcing as a means of lowering operational costs will come into play. As technology continues to advance, the MSSP segments will experience a shift to reflect these advances.
Participants must understand the subtle nuances of the market and offer products that squarely meet the demands of end users. Flexible and value added services will find greater uptake. Businesses increasingly demand a mix of hosted and CPE-based services. The hosted segment remains the fastest growing due to virtualization, cost reduction, and demand for mix and match of services.
Global Managed Security Service Providers Rollup is part of the Network Security Growth Partnership Services program, which also includes research in the following markets: World Patch Management Products Market, World One Time (OTP) and USB Key Authentication Products Market, World Vulnerability Research Markets Q3 2008, World Public Key Infrastructure (PKI) Certificates and Management Market, World Endpoint Security Products Market, World Secure Mobile Endpoint Products Market, and World Unified Threat Management (UTM) Products Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Global Managed Security Service Providers Rollup / N479-74