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Need for Compliance and Greater Data Security Fuels Growth in the North American Managed Security Service Providers Market, Finds Frost & Sullivan

Posted on: Thursday, 16 July 2009, 06:30 CDT

MOUNTAIN VIEW, Calif., July 16 /PRNewswire/ -- The North American managed security services market witnessed solid growth of 12 percent in 2008, attributed to several factors, including an enhanced focus by managed security service providers (MSSPs) on the security market after many consolidations, strong business growth in services, and the uptake in key vertical markets. The increasing need for compliance with Payment Card Industry Data Security Standards (PCI DSS) and other required mandates is driving the adoption of security services in emerging vertical markets, such as manufacturing, energy, retail, and utilities.

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In light of the recession, companies are prioritizing the implementation of cost-effective security solutions. As hackers continue to innovate and refine their attacks in various new formats, more businesses with networks to protect will seriously consider partnering with MSSPs, as their own resources for dealing with these threats fall short of expectations.

New analysis from Frost & Sullivan (http://www.networksecurity.frost.com), North America Managed Security Service Providers Market, finds that the market earned revenues of over $1.06 billion in 2008 and estimates this to reach $2.40 billion in 2015.

If you are interested in further information about the study, please send an e-mail to Jake Wengroff at jake.wengroff@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

Security products continue to improve in capability and yet there is no evidence of a decline in the number and variety of network attacks. As such, the demand for MSSP services will experience stable demand.

"Threats continue to be malicious and complex, and malware is increasing alarmingly, highlighting the need for companies to defend all the endpoints attached to the corporate network," says Frost & Sullivan Research Analyst Martha Vazquez. "MSSP providers have realized that throughout the industry the key to managing these threats is to seize and maintain the initiative through an increasingly preventative posture."

Outsourcing security to a MSSP will allow organizations to concentrate on core business processes and comply with regulations, and a growing number of organizations are becoming less fearful of handing over sensitive information to MSSPs.

Nonetheless, many clients continue to be reluctant to outsource to MSSPs due to budget constraints and doubts on ROI benefits without actually experiencing a serious breach. There is a lack of information with regard to damages in terms of costs that serious data breaches entail. Stepping up education on the benefits obtained by outsourcing security to a MSSP is crucial for organizations to realize the tangible benefits of the service.

The confusion over regulatory policies has remained an issue for many industries. Variations concerning network security laws and liability between different industries and regions are rampant.

"While the industry-specific legislation is often nebulous, the combination of overlapping and exclusive laws affecting their respective regional markets has been a source of considerable confusion for administrators," explains Vazquez. "Multinational corporations, in particular, are scrambling to comply, and that confusion itself is slowing MSS industry growth."

In addition, the legislation that exists from state to state is creating perplexity in the network security arena. Uncertainties over legislation and compliance are expected to gradually disappear, but will cause a stir in the market as compliance issues evolve and change in the future.

North America Managed Security Service Providers Market is part of the Network Security Growth Partnership Service program, which also includes research in the following markets: IDS/IPS, SSL-VPN, endpoint security, firewalls, NAC, wireless IDS/IPS, and mobile anti- malware. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

North America Managed Security Service Providers Market

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Contact: Jake Wengroff Corporate Communications - North America P: 210.247.3806 F: 210.348.1003 E: jake.wengroff@frost.com

http://www.frost.com

SOURCE Frost & Sullivan

Source: PR Newswire

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