Infonetics Predicts SaaS Revenues To Grow

From: http://www.rfpconnect.com/news/2010/3/31/infonetics-predicts-saas-revenues-to-grow

Infonetics Research released the first edition of its 2010 biannual Managed Security Services and SaaS market size and forecast report.

SECURITY SERVICES MARKET HIGHLIGHTS

- Managed security service revenue totaled $9.4 billion in 2009, up 12% from 2008
- Service provider managed firewalls continue to be the bread and butter services among CPE-based security services
- Worldwide revenue derived from security services delivered via SaaS grew 70% in 2009, fueled primarily by demand for content security services (e.g., Web, e-mail, and anti-virus security)
- SaaS revenue is forecast to grow from 10% of total security service revenue in 2009 to 22% in 2014, with cloud-based and CPE-based security services making up the balance
- While large organizations currently represent the largest revenue opportunity for service providers offering managed security services, medium and small organizations are spending money on security services at a faster pace
- North America accounts for 41% of worldwide managed security service revenue in 2009

REPORT SYNOPSIS

Infonetics' Managed Security Services and SaaS report provides market size, forecasts through 2014, and analysis for managed security services by technology (managed firewalls, content security, IDS/IPS, other), service type (CPE, cloud, SaaS), and organization size.

Companies tracked in the report include major telecom service providers (AT&T, T-Systems, China Telecom, etc.), large hosting and Internet content providers offering security services (Google, etc.), specialized security service providers (Virtela, SecureWorks, etc.), and security SaaS vendors (Cisco/ScanSafe, Symantec, McAfee, zScaler, Barracuda/Purewire, Trend Micro, Websense, etc.).

The report includes market drivers, service roadmaps, relevant survey data, and service provider analysis. Regions include North America (with US and Canada breakouts), EMEA, Asia Pacific, and Central and Latin America.

Infonetics' 2009 managed security services revenue forecast ($9.5 billion), made a year ago, was within 1% of actual revenue ($9.4 billion).

"Despite the global economic meltdown that started in mid-2008, the security services market is strong and growing. The primary market drivers for security services include increasing global demand from organizations of all sizes due to the proliferation of security threats of all types; the complexity of current security solutions; widespread use of diverse devices; and the desire of product manufacturers and service providers to add recurring revenue and improve margins. Strong interest in and broad availability of software-as-a-service (SaaS) security offerings will help drive strong growth in the overall managed security services market over the next 5 years," notes Jeff Wilson, principal analyst for security at Infonetics Research. *