Demand For Managed Security To Surge

[InfoSec News <isn () c4i org>]

http://www.crn.com/sections/BreakingNews/breakingnews.asp?ArticleID=37342

By Marcia Savage, CRN
Scottsdale, Ariz.
5:36 PM EST Mon., Sept. 09, 2002 

The worldwide market for managed security services will reach nearly
$4.9 billion in 2006, up from $1.3 billion last year, according to
research firm In-Stat/MDR.

More companies will outsource their security as threats grow from both
inside and outside the corporate network, the firm said in its
forecast, released Monday.

Small and midsize businesses with 1,000 to 4,900 employees are and
will continue to be the biggest buyers of managed security services
due to their lack of security personnel and expertise, according
In-Stat/MDR, based here.

The market for outsourced security has undergone a massive shakeout
with companies either going out of business or selling off their
managed security operations. Most recently, Symantec acquired Riptech,
a managed security provider in Alexandria, Va.

Despite the acquisitions and dot-com failures, there are a number of
factors driving growth of managed security services, In-Stat/MDR said.  
Key drivers are added and expanded services, services offered on a
trial basis, and the entrance of well-known hardware vendors to the
market.

Jaclyn Bumback, an analyst with InStat/MDR, said the many different
types of providers in the market, from traditional software vendors
such as Symantec to small local companies, makes it difficult to cite
the most successful players in the segment.

While it's too soon to predict how Symantec will fare in the managed
security space, its well-known brand name likely will make it
successful, she added.

The Yankee Group, a Boston-based research and consulting firm, also
released Monday a rosy forecast for managed security services. The
firm predicted that the market for vulnerability scanning and security
assessment services will grow from $45 million last year to almost
$190 million by 2006.
  



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