Managed Cloud Security Market is Growing, Reaching $9 Billion Revenue by 2017

By on 23/05/2015

Cloud-based systems are attractive as a standard part of the corporate landscape, because they are usually cheaper, faster and easier to deploy than internal IT systems. The path to the cloud is a must for most enterprise, however, an assessment of information risk precede that takes into account the complexities of cloud systems, the data to be stored in the cloud, the applicable privacy policy and of course the needs of the company.

Market research firm Infonetics Research released its latest Cloud and CPE Managed Security Services report, which analyzes and forecasts the market for cloud- and customer premises equipment (CPE)-based security services delivered by service providers to small, medium, and large businesses. The report is based on security trends adopted by companies such as managed firewalls, content security, intrusion prevention and detection system, and other services.

According to the report, the managed cloud security market is expected to grow 45 percent over the next five years due to increase in the volume, variety, and complexity of threats of all types, security product sprawl and a distributed workforce and the proliferation of BYOD erasing network perimeters. The cloud-based security service revenue is projected to grow at a 10.8% compound annual growth rate (CAGR) from 2012 to 2017, to $9.2 billion bolstered by IT departments’ continued migration to cloud services.

A new Akamai’s quarterly State of the Internet report indicates that distributed denial of service (DDOS) attacks on companies increased 54 percent between the first and second quarter of 2013.

The long-term outlook for managed security services, and especially cloud services, is quite strong, but there are some potential stumbling blocks. 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, says the report.

The report warns that managed security vendors will face serious competition from big cloud player such as Google and Microsoft, which already have standalone SaaS-based products. Microsoft is promoting Azure as the leading infrastructure for cloud, mobile apps and managed services platform. AForrester report revealed that when it comes to enterprise cloud devs, Windows Azure is just next behind to Amazon Web Services.

The security arrangements and the anticipated risks offered by cloud providers therefore need to be assessed individually before a decision is made in favor of or against a particular cloud type and cloud service combination. Moreover, business processes should be implemented to ensure that the necessary safety precautions – even if the pressure for rapid adoption and use of cloud services from the fields is often high.