Need For Network Security Boosts Growth In Managed Security Service Provider Market, According To Research
Escalating cybercrime drives the North American managed security service providers (MSSP) market, and it is still growing. As cyber threats get increasingly complex, enterprises are going the extra mile to implement new privacy safeguards.
Security solutions help expedite business efficiency, minimize costs, and resolve security-related issues within an organization. Enterprises are required to fall in line with strict compliance regulations to ensure strong security.
New analysis from Frost & Sullivan, North American Managed Security Service Providers (MSSP) Market, finds that the market earned revenues of $1.20 billion in 2009 and estimates this to reach $3.90 billion in 2016.
"Although budget cutbacks have resulted from the economic slowdown, companies are continuing to implement measures to upgrade security," said Frost & Sullivan research analyst Martha Vazquez. "Outsourcing security to an MSSP will free up time for organizations to focus on core business processes."
The introduction of new legislation creates a whole new dimension to constantly-evolving corporate liability for information security. All verticals, including healthcare, financial services, and government, are required to comply with regulations such as Health Insurance Portability and Accountability Act (HIPAA), Sarbanes Oxley Act (SOX), and those from the Payment Card Industry (PCI).
Considering the state of the economy, it is imperative for providers to roll out cost-efficient solutions. Also, companies that have not experienced a serious breach find it difficult to comprehend the ROI benefits. Economic uncertainty also makes most companies hesitant about implementing MSSP services, but organizations are more accepting than in the past. Enterprises also rely on outsourcing to secure infrastructure and lower operational costs.
"There is still a lack of information with regards to the costs entailed by serious data breaches, especially during this slow economy," Vazquez said. "Education must be increased to enable organizations to become more at ease with acknowledging the benefits obtained from outsourcing security to an MSSP."
MSSPs must focus on diversifying security portfolios in order to remain competitive in the market. MSSPs are leveraging hosted services as a means to offer lower price points; and this has increased the demand for these services in the past year.
Cloud computing services are being increasingly utilized to cut operational and upfront costs. Virtualization is being widely embraced across enterprises to facilitate the use of cloud-based solutions and ratchet down cost. New avenues of opportunity will open up for MSSPs as virtualization and cloud-based solutions gain further traction.