Low levels of understanding hold back security services market
Although awareness to security dilemmas has never been higher, a low level of understanding and confusing vendor messages holds back security services market.
A lack of understanding and confusing vendor messages is inhibiting the growth of the security services market. Although the security services market continues to show strong growth, the heightened level of security awareness among businesses has yet to be translated into exceptional level of spending.
According research from IDC, the European security services market is forecast to grow from US$1.9 billion in 2001 to US$5.9 billion in 2006, with a compound annual growth rate (CAGR) of 26%.
“The relatively low willingness to spend on security services, and the high level of supply-side fragmentation, is putting pressure on the business models of many security services firms, and many will not survive,” said Martin Canning, Research Director, IDC European Services Research.
While the market prognosis is good , IDC believes that the market has reached a critical juncture. In order to build credibility and facilitate spending, players in the security services market must accept extensive consolidation and re-examine their positing messages.