Frost & Sullivan Research Service   Published: 31 Oct 2006
North American Managed Security Service Providers Markets
  SERVICE HOMEPAGE
RESEARCH OVERVIEW MARKET SECTORS TECHNOLOGIES
LIST OF FIGURES MARKET OVERVIEW TABLE OF CONTENTS
ORDERING INFORMATION FURTHER INFORMATION
   Research Overview
 

The Frost & Sullivan research service titled North American Managed Security Service Providers Markets provides drivers, restraints, trends, market sizing, segmentation by services and vertical enterprise users, as well as a competitive analysis. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following markets/applications/technologies: managed firewall, IDS, IPS, Authentication, SSL VPN, IPSec, and assessment, among others

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   Market Sectors
 

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Technology:

  • Managed firewall
  • Managed IPS
  • Managed authentication
  • Managed SSL VPN
  • Vulnerability assessment

By Application:

  • Information technology
  • Network security
  • Managed security services
   Technologies
 

The following technology is covered in this research service:

  • Managed Security Service Providers (MSSPs): MSSPs monitor and manage the clients’ electronic infrastructure from secure operating centers (SOC) in order to protect client data and communications from anomalies and attacks. MSSPs perform these collective services through the use of intrusion detection and intrusion prevention systems (IDS/IPS), virtual private networks (VPN), firewalls, anti-virus, content filtering, authentication, and application security solutions.
   Market Overview
 

Increasingly Innovative Threats Drive Market Growth

With increasingly innovative threats such as distributed denial-of-service (DDOS), phishing, pharming, and phlooding, there is growing consensus throughout the industry that the key to managing these threats is to seize and maintain the initiative through an increasingly preventative posture. The ongoing transition from intrusion detection systems (IDS) to intrusion prevention systems (IPS) is only one of the indicators of this realization and an increasing number of businesses seeking network protection are expected to look hard at partnering with managed security service providers (MSSPs) as their resources (time, money, and personnel) for dealing with the threats are limited. Also expected to add to the demand for managed security services (MSS) is the relentless introduction of new legislation that have created an entirely new dimension of corporate liability for information security. This constant evolution of regulatory requirements are expanding the customer base of the MSSP industry by forcing companies to invest in network security to reduce liability and it is highly likely that they will continue to impact industries until 2010.

Notwithstanding these drivers, a stiff challenge for MSS providers is that many potential clients remain unconvinced of its value unless they have already experienced a serious network security failure. While this restraint gradually reduces each time there is a publicized and costly network security breach, similar to the one that involved CardSystems, many companies appear willing to take their chances until legislation specific to their industry induces them to comply and invest. "Further, the MSSP model continues to encounter more skepticism than most new industries would experience at this point in the lifecycle due to the extremely sensitive nature of the clients’ networks," notes the analyst of this research service. "Establishing and maintaining the trust of existing and potential clients alike is therefore paramount to the future of the industry as a whole."

Managed Security Event Correlation Systems Gaining Momentum

Managed security event correlation systems, also referred to as security information management (SIM) or security incident and event management (SIEM), is an emerging offering in the MSS industry that is gaining momentum among the traditional leaders in the market. Given the growing security threat and need to ensure legislative compliance, SEC solutions are becoming an increasingly important part of enterprise infrastructure. Managed SEC services would have an intuitive appeal for small- and medium-sized enterprises that may find the capital outlays associated with SEC deployment and management to be prohibitive. Moreover, SEC solutions are also being heralded as a utility tool for overworked security administrators who now find themselves responsible for monitoring networks for internal threats and working with auditors to ensure that proper policies, procedures, and IT controls are in place. IT staffing budgets have not seen much increase and companies are increasingly opting to invest in tools to aid their existing staff than deal with these issues and the costs of finding and hiring qualified staff.

Among the technologies, firewall/IPSec/VPN and IDS/IPS presently dominate the North American managed security service providers markets. While these technologies have served as the foundation for the industry in its early years and remain essential components of the MSS equation, they continue to be partially displaced by demand for newer and more specialized offerings. "Overall, the North American managed security service providers markets has moved from its introductory stage to growth stage and is expected to see a 22.6 percent growth rate in 2006," says the analyst. "However, gradually decreasing growth rates projected by Frost & Sullivan are clear indicators that the industry is maturing more quickly than many analysts had expected."

  Table Of Contents

1. Executive Summary
        1. Executive Summary
                  1. Market Overview and Definitions
                  2. Key Market Drivers and Restraints
                  3. Key Findings and Conclusions
 
2. Total Managed Security Services Providers Market
        1. Market Definitions
                  1. Market Definitions
                  2. Market Engineering Measurements
                  3. Market Drivers
                  a. Relentlessly Innovative Threats
                  b. Growing Awareness of Potential Damage
                  c. Companies Scrambling to Comply with New Legislation
                  d. MSSP Model Gaining Deeper Acceptance
                  e. MSSPs Pursuing New Market Segments
                  f. Continued Consolidation and Partnering Increase Competition
                  g. Scarcity of Qualified and Experienced Security Personnel
                  h. Interdependence of Specialized and Diversified Providers
                  4. Market Restraints
                  a. Difficult to Measure ROI Without a Serious Breach
                  b. Budgetary Conflicts
                  c. Skepticism of Foreign MSSPs
                  d. Reluctance to Partner with Outsiders
                  e. Price of MSS Remains Prohibitive for Some Segments
                  f. Perception that Security Products can Substitute for MSS
                  g. Regulatory Dissonance Across Verticals
                  h. Sensitivity of IT Security Discourages Testimonials
        2. Market Trends and Forecasts
                  1. Revenue Forecasts
                  2. Service Analysis
                  3. Vertical Market Analysis
                  4. Technology Trends
                  5. Distribution Channel Analysis
                  6. Pricing Trends
                  7. Legislative and Certification Trends
        3. Competitive Analysis
                  1. Competitive Structure
                  2. Market Share Analysis- Leader
                  3. Market Share Analysis- Challengers
                  4. Market Share Analysis- Contenders
 



   List of Figures
 

Chapter 1

  • Managed Security Services Market: Revenue Forecasts (North America), 2003-2013

Chapter 2

  • Managed Security Services Market: Market Drivers Ranked in Order of Impact (North America), 2006-2013
  • Managed Security Services Market: Market Restraints Ranked in Order of Impact (North America), 2006-2013
  • Managed Security Services Market: Revenue Forecasts (North America), 2003-2013
  • Managed Security Services Market: Percent of Revenues by Service (North America), 2003-2013
  • Managed Security Services Market: Percent of Revenues by Vertical Markets (North America), 2003-2013
  • Managed Security Services Market: List of Most Commonly Supported Products (North America), 2006
  • Managed Security Services Market: Competitive Structure (North America), 2006
  • Managed Security Service Market: Database of Key Industry Participants (North America), 2006
  • Managed Security Services Market: Market Share Analysis (North America), 2005-2006
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