Top security vendors — Dell Technologies, Hewlett Packard Enterprise (HPE) and Intel are drafting new strategies because enterprise security revenue growth has decelerated, says TBR.
The above chart is on the global Internet security market by Allied Market Research.
TBR said the dip in the growth of the global enterprise security market is partly due to the changing attack landscape that is characterized by a more targeted breed of data breaches.
The TBR report said global security vendors are adjusting their investments and ownership in their security business units.
Dell Technologies, Hewlett Packard Enterprise (HPE) and Intel made acquisitions or spun out large portions of their security portfolios.
“The enterprise security market of the future will be more heavily influenced and controlled by pure play security vendors and their investment partners,” said said Jane Wright, a principal analyst at TBR.
The above network security market for Q2 2016 was prepared by IHS.
The TBR report warned that security vendors will face increased pressure from their boards and investors to achieve both growth and profitability. Ten of the 24 benchmarked vendors accomplished this difficult feat in Q2 2016, according to TBR estimates.
While, Intel Security Group revenue was $537 million, flat sequentially and up 6 percent year-over-year, Intel performed well in IoT, Client Computing and data center business during the third quarter of 2016. Intel Corporation posted 9 percent increase in third-quarter revenue of $15.8 billion.
TBR aligned benchmarked vendors’ R&D and sales and marketing investments with their revenue growth rates to uncover the most effective investment strategies of small, midsize and large security vendors.
Profitable and growing small security vendors spent 16.3 percent of their revenue on R&D and 26.3 percent of their revenue on sales and marketing, on average, in Q2.
Though revenue growth for benchmarked vendors decelerated from 20.8 percent in Q2 2015 to 15.9 percent in Q2 2016, some segments of the enterprise security market captured larger portions of customers’ spending.
The endpoint security and security management segments netted the largest increases in customers’ security spending over the past two years, as customers recognized the growing importance of securing endpoints outside their corporate firewalls and managing complex security deployments for improved threat detection and response.
Baburajan K
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