The European customer premise equipment (CPE) managed security services (MSS) market is in the growth stage and holds enormous potential for the next few years.
The presence of strong competitors committed to the MSS model, including European and global telecoms and network services companies, European and global system integrators (SIs) and pure-play MSS participants, will help drive its acceptance in Europe over the long term.
Frost & Sullivan finds that the European Customer Premise Equipment (CPE) Managed Security Services Market earned revenues of $576.3 million in 2006 and estimates this to reach $2,180 million in 2013.
“The cumulative effect of complex new laws and the lack of qualified and experienced security personnel is that companies are being forced to seriously consider outsourcing the security of their network infrastructure as an economical, reliable and round-the-clock alternative to a small internal security team,” says Frost & Sullivan Industry Manager Jose Lopez. “This growing appeal of the MSSP model in Europe is being led by specialist providers such as Cybertrust, telcos such as Orange and BT and systems integrators such as IBM and Getronics.”
Despite its considerable growth potential, the European market suffers from lack of homogeneity. For instance, the market in regions such as eastern Europe are at an embryonic stage while the maturity level in countries such as the United Kingdom is high.
“As end users become more comfortable with the MSS model, growth in different industries and among businesses of all sizes is likely to accelerate even as large businesses and governments continue to remain the key target markets for MSSPs,” observes Mr. Lopez. “However, given the abundance of small and medium businesses (SMBs) across Europe, MSSPs are also expected to increasingly offer specific solutions for businesses of this type, thereby positively influencing market expansion in the region.”
Despite these positive projections, challenges persist. The MSSP model remains relatively new to the marketplace and has been subject to the scrutiny and scepticism typical in an industry still in the early stage of its product lifecycle. Due to the extremely sensitive nature of clients’ networks, the MSSP model continues to encounter even more scepticism than most new industries would at a similar stage in the lifecycle.
“Also, regardless of the reputation for excellence MSSPs earn through their client partnerships, it is possible that in the long term, many large and small businesses are likely to remain uneasy about relying on an external third party to secure their networks,” cautions Mr. Lopez. “Of paramount importance to the future of the industry as a whole will be the ability of MSS providers to establish and maintain the trust of existing and potential clients.”