IDC predicts booming managed security services market

Managed security services market is expected to undergo a 25.4% growth per year, to reach US$ 2.2 billion by 2005.

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By  Greg Wilson Published  February 14, 2002

IDC is predicting that the US market for managed security services is due to explode, reaching US$ 2.2 billion by 2005.

According to the research house, the market is expected to grow at a 25.4% compound annual growth rate (CAGR) between 2000 and 2005.

“The managed security services market is being driven primarily by resource constraints to capital and security expertise, as well as the growing complexity of networks and rogue access points, which exponentially increase exposure to vulnerabilities and threats,” said Allan Carey, senior analyst of IDC’s information security services research group.

“These factors combined are drastically affecting the way organizations approach risk mitigation. Customers want information security solutions to seamlessly integrate into the network, ensure scalability, and provide a measurable return on investment,” he added.

The largest market opportunity for managed security service providers (MSSPs) is within the small to medium-sized business space, where customers have strong security needs, but limited information security skills and resources.

However, providers have still to address issues such as the lack of security awareness within an organisation’s executive management and the build-versus-buy scenario.

“Educating existing and potential customers and having an in-depth understanding of the target market are two of the elements we believe to be crucial for vendors seeking to introduce new offerings or merely build upon their existing business strategy in the managed security services market,” explained Carey.

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