Currently, the vast majority of revenues of the nascent EMEA in the cloud managed security services (MSS) market derive from offering clean pipe services to end users.
These MSS providers (MSSPs) typically control a wide variety of security solutions for malware and threat prevention, virus scanning, and/or URL filtering.
Increasingly, however, they are providing other security services such as e-mail archiving, anti-denial of service attacks and intrusion prevention systems to protect corporate networks in an ever-changing, threat landscape. These trends are poised to dramatically transform the MSS market over the coming years.
Frost & Sullivan finds that the EMEA In the Cloud Managed Security Services Market earned revenues of $81.7 million in 2005 and estimates this to reach $603.7 million in 2012.
Their key selling proposition has been based on providing a clean pipe to clients, thus saving bandwidth costs. In addition, the introduction of new services such as instant messaging (IM) filtering, Web filtering and e-mail archiving and encryption has had a positive effect on 2005 and 2006 growth levels, which will drive revenue expansion throughout the forecasted period.
While the existent services have attracted a number of important clients and demonstrate the validity of the in the cloud model, the anticipated growth of this market is unlikely to come from selling e-mail and Web security services alone.
Instead, future market growth will derive from additional security services such as firewall and intrusion prevention services that are already popular customer premise equipment (CPE) based services.
The in-the-cloud MSS model remains relatively new to the marketplace, and has been subjected to the scrutiny and scepticism that is typical in an industry still experiencing the early phase of its product lifecycle curve.
Moreover, the MSS model continues to encounter even more scepticism than most new industries would experience at this point in the lifecycle due to the extremely sensitive nature of the clients’ networks. Therefore, the challenge of establishing and maintaining the trust of existing and potential clients alike is therefore of paramount importance to the future of the industry as a whole.