Cloud and CPE managed security services market is projected to grow 45 percent over the next 5 years, said Market research firm Infonetics Research.
The market is driven by increase in the volume, variety, and complexity of all types of threats, security product sprawl, and a distributed workforce and the proliferation of BYOD erasing network perimeters.
“The long-term outlook for managed security services, and especially cloud services, is quite strong, but there are some potential stumbling blocks,” said Jeff Wilson, principal analyst for security at Infonetics Research.
“Improvements in the efficacy and ease of management of security products could decrease the urgency to move to the cloud, and regulatory drivers are forcing some customers to keep all data on premise,” Wilson added.
Cloud-based security service revenue is forecast by Infonetics to grow at a 10.8 percent compound annual growth rate (CAGR) from 2012 to 2017, to $9.2 billion, the research said.
Though prominent SaaS providers like Google and Microsoft are transforming the standalone security business and bundling security functionality with business apps such as Google Docs/Drive and Office 365, they remain serious competition for traditional managed security vendors, Infonetics said.