Managed security services set to grow

The worldwide managed security services market is poised for growth, according to research from In-Stat/MDR. The group reports that the sector will reach US$5.9 billion by 2007.

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By  Zoe Moleshead Published  October 13, 2003

The worldwide managed security services market is poised for growth, according to research from In-Stat/MDR. The group reports that the sector will reach US$5.9 billion by 2007 from US$1.6 billion in 2002.

The surging demand for managed security services will also benefit hardware and software vendors, managed service providers, telcos and consulting firms, says In-Stat. However, the group suggests that wide area network (WAN) access providers stand to gain the most from this growth.

"Any company that has some type of WAN access needs security. However, while this group of service providers has the best reach to customers, they also tend to have the least expertise on security," says Jaclynn Anderson, a research analyst with In-Stat/MDR.

"The most security-savvy of the competing security service providers are the security niche players, vendors like, Counterpane, Guardent, and Symantec, which have built their reputation solely on their ability to provide top-level security. The start-up mentality for many of the niche players, has allowed them to quickly adapt to market changes, and provide services for new types of security equipment faster than any other type of managed security service provider," she adds.

Security consulting will also take a backseat to managed security monitoring over the coming years with the latter expected to account for US$2.5 billion of the market by 2007.

The In-Stat survey also discovered that most enterprises are planning to purchases services by the first half of 2004, with business liability cited as the key reason for purchasing security services.

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