Managed Security Services Continue Growth Pace

By Ericka Chickowski  |  Print this article Print

The economy may be stalled, but demand for managed security services will continue to grow at an accelerated pace in the next few years. Here's a look at the trend.

New research out from market analysis firm Infonetics Research showed that in spite of a stagnant economy, managed security services are experiencing a brisk rate of growth with no signs of letting up through the next few years.

In 2011, Infonetics believes that the managed security market will reach 13 percent growth. By 2015, Infonetics believes the market will reach $16.8 billion.

"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," says Jeff Wilson, principal analyst for security at Infonetics Research.

Wilson says the strongest growth will come from the SaaS segment of the market, which he predicts will double between this year and 2015 as companies use this more flexible delivery model to keep up to date with swift changes in the threat environment that can lead to rapid obsolescence of security equipment.

SaaS also enables better means of protecting a geographically diverse user base accessing corporate data and applications from an increasing number of devices, Infonetics says. The firm predicts that by 2015, cloud-based services and SaaS will make up 46 percent of the managed services market, compared to 38 percent in 2011.

Infonetics also believes that small and medium businesses will be the driving factor behind managed services growth in the coming years. By 2011, small organization spend on managed services will grow to make up a quarter of the global market, the firm predicts. It only follows, considering that these businesses are experiencing some of the worst fallout from automated attacks on the web but are least prepared to invest in costly security infrastructure.

"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," Wilson says.