Companies are embracing managed security services

As companies become more dependent on networks, they are increasingly turning to managed security services in order to cut costs, says In-Stat/MDR.

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By  Neil Denslow Published  September 16, 2002

With companies becoming more dependent on networks, they are increasingly turning to managed security services in order to cut costs, says In-Stat/MDR. The research firm predicts that the worldwide managed security services market will approach US$4.9 billion in 2006. The market will also see a change of emphasis with managed security monitoring replacing consulting as the biggest sector of the market.

In-Stat/MDR states that the business sector with the highest penetration of managed security services is organisations with between 1000 and 4999 employees. The analyst house predicts that this market segment will retain its lead through to 2006, but it expects SOHOs, small offices, and medium-sized businesses — which collectively account for less than 3% of the total security services revenue — to experience "extraordinary growth" through 2006. This demand is expected to be driven by the lack of security personnel and skills within these small companies.

“Companies are at high risk for security violations from many directions as employees, partners, customers, viruses, worms, hackers, telecommuters and wireless connections all pose risks to the corporate network,” says Jaclynn Bumback, analyst, In-Stat/MDR.

“A high degree of security expertise is needed to protect companies from the many risks in the wild and security services companies are capable of providing a high degree of security at a cost that companies can afford,” she adds.

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