Infotech Lead Asia: The global cloud and CPE managed security service market grew another 12 percent in 2012 to $13 billion, according to Infonetics Research.
While the majority of security service revenue in 2012 came from CPE-based services, by 2017 CPE revenue is expected to dip to 50 percent of total revenue.
Infonetics forecasts sales of cloud-based security services to grow 69 percent over the next 5 years.
Other security services, of which hosted DDoS services are a major and growing contributor, are anticipated to comprise over 20 percent of cloud-based security service revenue by 2017.
On February 5, 2013, Frost & Sullivan reported that Latin American managed security services markets earned revenues of over $331.9 million in 2012 and estimates this to reach $646.2 million in 2017.
Though the managed security services market in Latin America (in the Southern Cone in particular) has not yet reached maturity and is in an incipient phase compared to developed countries, competing in this segment is an important challenge for providers.
The main offerings in the Latin America Market are firewall and VPN; IDS, IPS, and Anti-Virus; Anti-Spam; and filter content. Authentication and penetration tests still have lower demand and because of that, higher growth rates. The main market competitors in the region are IBM, HP, Cipher, Arcon, Unisys, and NeoSecure.
Infonetics Research says buyers are moving to managed security services to deal with increased attack volume and complexity, manage security product sprawl, deliver consistent security for a distributed workforce and device population, and provide security for cloud infrastructure.
Jeff Wilson, principal analyst for security at Infonetics Research, said: “Manufacturers and service providers are developing more mature offerings to build out and deliver managed security to customers, and the net result is the market continues to enjoy healthy overall growth, with particularly strong growth for cloud-based services.”