Analyst: Managed security services to top US$4 billion

Australia and New Zealand markets forecast to have a growth rate of 17.3% annually for the next five years, says analyst firm Frost & Sullivan.

The Asia-Pacific managed security services market is forecast to exceed US$4 billion by the end of 2015, with revenues rising at a compounded growth rate of 19.7 percent annually for the next five years.

Frost & Sullivan industry analyst, Cathy Huang, expects growing adoption for MSS by small and medium businesses. “As network security risks continue to mount and compliance mandates become more stringent, organisations are forced to implement an ever-increasing number of security technologies,” she said. “The managed model is a compelling option for SMBs who can ill-afford large capital expenditure on security solutions, nor cope with the complexity of an endless onslaught of newer and increasingly targeted threats.”

According to recent analysis of the Asia-Pacific managed security services market, the market (covering 14 Asia-Pac countries) grew an estimated 15% percent in 2009, with revenues of just over US$1.31 billion. The ANZ market grew an estimated 13.5 percent in 2009 with revenues of US$375.6 million.

By the end of 2010, Huang expects Asia Pacific revenues to hit close to US$1.55 billion, rising 18.2 percent over last year. ANZ revenues are expected to hit US$438.2 million, rising 16.6 percent over last year.

“The past two years saw many companies trimming their IT budgets and looking for more cost-effective ways of meeting their IT needs; network security included,” Huang continued. “This has fuelled keen interest in shared infrastructure delivery models such as MSS, which allow companies to shift to a more predictable operating expense model.”