Home Security Cloud security services market to hit US$9 billion by 2020: Gartner

Cloud security services market to hit US$9 billion by 2020: Gartner

Cloud security services market to hit US$9 billion by 2020: Gartner Image courtesy of Stuart Miles at FreeDigitalPhotos.net Featured

Cloud-based security services are going through a strong global growth phase with a 21% increase this year over last year expected to take the market to a value of US$5.9 billion by the end of 2017.

The cloud security market forecast from analyst firm Gartner shows that overall growth in the cloud-based security services market is above that of the total information security market Gartner, with an estimate that the cloud security services will reach close to US$9 billion in market value by 2020.

"Email security, web security and identity and access management (IAM) remain organisations' top-three cloud priorities," says Ruggero Contu, research director at Gartner.

According to Contu mainstream services that address these priorities, including security information and event management (SIEM) and IAM, and emerging services, offer the most significant growth potential.

The Gartner report reveals that emerging offerings are among the fastest-growing segments and include threat intelligence enablement, cloud-based malware sandboxes, cloud-based data encryption, endpoint protection management, threat intelligence and web application firewalls (WAFs).

Here’s what Gartner says about different aspects of the cloud-based security market:

Increasing security threats, operational and cost benefits and staffing pressure drive market growth

Small and midsize businesses (SMBs) are driving growth as they are becoming increasingly aware of security threats.  They are also seeing that cloud deployments provide opportunities to reduce costs, especially for powering and cooling hardware-based security equipment and data centre floor space.

"The cloud medium is a natural fit for the needs of SMBs. Its ease of deployment and management, pay-as-you-consume pricing and simplified features make this delivery model attractive for organisations that lack staffing resources," says Contu.

“The enterprise sector is also driving growth as they realise the operational benefits derived from a cloud-based security delivery model.

"Cloud-based delivery models will remain a popular choice for security practices, with deployment expanding further to controls, such as cloud-based sandboxing and WAFs."
 
According to a global survey conducted by Gartner at the beginning of 2016, public cloud will be the prime delivery model for more than 60% of security applications by the end of 2017.

"The ability to leverage security controls that are delivered, updated and managed through the cloud — and therefore require less time-consuming and costly implementations and maintenance activities — is of significant value to enterprises," Contu says.

Cloud-based security services market growth presents opportunities and challenges for providers.

"On the one hand, new greenfield demand arising from emerging requirements from SMBs is driving growth. On the other hand, new competitive dynamics and alternative pricing practices threaten traditional business models," Contu says.

“Providers need to adapt to the shift from an on-premises to a cloud-delivery business model.”Overall, one of the main focus areas for providers relates to the shift from owning and selling a product, to selling and supporting ongoing service delivery."

gartner chart

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

 

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