Security Market Segment LS
Friday, 15 July 2016 14:03

Big security vendors under challenge from small, specialised vendors Featured

By
Big security vendors under challenge from small, specialised vendors Image courtesy of Stuart Miles, freedigitalphotos.net/images

The world’s major security software vendors have been hit by a collective decline in revenues and below-market growth, and, in a double whammy, have been steadily losing marketshare to smaller security vendors.

According to the latest report on the security software market by Gartner, in 2015 the top five vendors together accounted for 37.6% of the security software revenue marketshare, down 3.1% from 2014, while collectively experiencing a decline of 4.2% in 2015 in contrast to the rest of the market which grew strongly at 9.2% year on year.

"The below-market growth seen by these large vendors with complex product portfolios is in contrast to the market growth and disruption being introduced by smaller, more specialised security software vendors," said Sid Deshpande, principal research analyst at Gartner.

Global security software revenues in 2015 totalled US$22.1 billion, a 3.7% increase over 2014, with security information and event management (SIEM) remaining the fastest segment in 2015, with 15.8% growth.

In contrast, the consumer security software segment suffered the sharpest decline at 5.9% year on year.

While the big five security vendors — with the exception of IBM  saw their revenues decline, Symantec managed to maintain the No. 1 position despite suffering its third consecutive year of revenue decline and its highest decline in revenue over a three-year period.

Gartner’s report shows Symantec’s security software revenue declined by 6.2% to US$3.4 billion in 2015, with 74% of its revenue coming from the consumer and endpoint protection platform (EEP) categories which, collectively, declined 7% on year and were a major contributor to Symantec's revenue decline.

Of the other vendors, Intel, ranked second behind Symantec, saw its security software revenues also declining in 2015, falling 4.1% to US$1.75 billion.

“Once again, the decline in the consumer and EPP markets, which accounted for 75% of Intel's revenue in 2015, contributed in large part to Intel's revenue decline,” Gartner says.

IBM bucked the downward spiral in revenue, being the only one of the top five vendors to show growth.

IBM’s security software revenue grew 2.5 % to total US$1.45 billion in 2015, driven by what Gartner says was a positive performance in the SIEM segment and its significant services business, which generates revenue for its product business.

Security Software Vendor Revenue, Worldwide 2014-2015 (Millions of Dollars)


Company

2015 Revenue

2015 Market Share (%)

2014 Revenue

2014-2015 Revenue Growth (%)

Symantec

3,352

15.2

3,574

-6.2

Intel

1,751

7.9

1,825

-4.1

IBM

1,450

6.6

1,415

2.5

Trend Micro

990

4.5

1,052

-5.9

EMC

756

3.4

798

-5.3

Others

13,773

62.4

12,611

9.2

Total

22,071

100.0

21,276

3.7

Source: Gartner (July 2016)


Subscribe to ITWIRE UPDATE Newsletter here

GRAND OPENING OF THE ITWIRE SHOP

The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.

ENTER THE SHOP NOW!

INTRODUCING ITWIRE TV

iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the iTWire.com site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.

SEE WHAT'S ON ITWIRE TV NOW!

BACK TO HOME PAGE
Peter Dinham

Peter Dinham - an iTWire treasure is a mentor and coach who volunteers also a writer and much valued founding partner of iTWire. He is a 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).

Share News tips for the iTWire Journalists? Your tip will be anonymous

WEBINARS ONLINE & ON-DEMAND

GUEST ARTICLES

VENDOR NEWS

Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News

Comments