Managed security services top $13 billion in 2012; strong growth ahead for cloud security

USA: Infonetics Research released excerpts from 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.

“Buyers are moving to managed security services to deal with increased attack volume and complexity, manage security product sprawl, deliver consistent security for a distributed workforce and device population, and provide security for cloud infrastructure,” notes Jeff Wilson, principal analyst for security at Infonetics Research.

Wilson adds, “Manufacturers and service providers are developing more mature offerings to build out and deliver managed security to customers, and the net result is the market continues to enjoy healthy overall growth, with particularly strong growth for cloud-based services.”

Cloud and CPE managed security highlights
* Equaling its 2011 performance, the global cloud and CPE managed security service market grew another 12 percent in 2012, to $13 billion.

* While the majority of security service revenue in 2012 came from CPE-based services, by 2017 CPE revenue is expected to dip to 50% of total revenue.

* Infonetics forecasts sales of cloud-based security services to grow 69 percent over the next five years.

* “Other security services,” of which hosted DDoS services are a major and growing contributor, are anticipated to comprise over 20 percent of cloud-based security service revenue by 2017.