There's a lot of excitement building around the managed security services market, but also reason to be cautious.
A new forecast from Infonetics Research predicts 45 percent growth in this segment over the next five years. Managed security services success will be driven by an increase in the volume, variety and complexity of all types of threats; security product sprawl; and a distributed workforce following a variety of different bring-your-own-device (BYOD) policies.
"The long-term outlook for managed security services, and especially cloud services, is quite strong, but there are some potential stumbling blocks," said Jeff Wilson, principal analyst for security at Infonetics Research. "Improvements in the efficacy and ease of management of security products could decrease the urgency to move to the cloud, and regulatory drivers are forcing some customers to keep all data on premise."
Infonetics says cloud-based security service revenue will rise at a compound annual growth rate of almost 11 percent from 2012 to 2017, to $9.2 billion. Though prominent SaaS providers like Google and Microsoft are transforming the standalone security business and bundling security functionality with business apps (Google Docs/Drive and Office 365), they remain serious competition for traditional managed security vendors, the researcher noted.
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