Cybersecurity vendors and growth trends in 2018 from Canalys

The latest cybersecurity report from Canalys indicates the growth in cyber-security market, forecast and the leading technology vendors.
Canalys report on cybersecurity marketEnterprises’ spending on cybersecurity exceeded $10 billion in Q4 2018 as they increased protection against malicious threats, while meeting data compliance regulations.

Cybersecurity investment reached $37 billion in 2018, up 9 percent from $34 billion in 2017, Canalys said. Cybersecurity still only represented 2 percent of total IT expenditure last year. This indicates that there is room for further growth.

Spending on security — hardware, software and services — is forecast to reach $103 billion in 2019, IDC report said.

Canalys said the global cybersecurity spending is expected to cross $42 billion by 2020 on an annual basis.

The two forecast reports from Canalys and IDC on the worldwide cybersecurity market show significant difference.

A Gartner report in 2018 said traditional IT security leaders have become digital security leaders as they expand support to address risks for technology-savvy engineering and physical environments while embracing expanded roles for cloud and mobile services.
Canalys on top cybersecurity vendors“Over the next two years, the transition in cybersecurity deployment models will accelerate. Customers are changing their IT buying behavior, with the adoption of public cloud, and flexible consumption and subscription services,” said Canalys Principal Analyst Matthew Ball.

Traditional hardware and software deployment accounted for 82 percent of the cybersecurity market in 2018. The remaining 18 percent was deployment of virtual appliances and agents, procurement through public cloud marketplaces and subscriptions to cybersecurity as a service.

The proportion from traditional deployment models will drop to 70 percent by 2020 as newer ways of delivering cybersecurity solutions gain traction.

Security vendors will have to establish a range of business models to support this transition, as different products suit different types of deployments.

The key challenge to date for many has been making the new models more channel-centric, and integrating them with existing partner programs, especially customer transactions via cloud marketplaces.

Some cloud marketplaces addressed this issue allowing partners to offer customized deals and pricing direct to customers, while tracking deal registration and rebates, Canalys Research Analyst Ketaki Borade said.

Cybersecurity market leaders

Cisco is the leader in cybersecurity market, growing its share from the previous year to just under 10 percent.

Palo Alto Networks grew faster but remained in second place with 7 percent.

Check Point, Fortinet, IBM and Symantec each had 6 percent market share in Q4 2018. The top 10 cybersecurity vendors represented 53 percent of shipments during this period, with the next 20 accounting for 21 percent.

Cisco, Palo Alto Networks, Barracuda and Check Point are also the top cybersecurity vendors on the leading public cloud marketplace, AWS Marketplace, selling their virtual offerings on a per hour and annual basis.

Barracuda Networks, Trend Micro and F5 Networks also have a strong presence on cloud marketplaces, highlighting their early move to adopt new deployment models.

Rajani Baburajan