World Managed Security Services Markets

SUMMARY

World Managed Security Services Markets

Research Overview

Regulatory Pressures are Driving New Customers towards Outsourcing

Regulatory pressures such as the Health Insurance Portability andAccountability Act (HIPAA), Gramm-Leach-Bliley Financial Services ModernizationAct, Homeland Security, Sarbanes-Oxley Act is driving many businesses tooutsource their security needs to managed security service providers (MSSPs).Customers are convinced that contracting the services of security professionalsto monitor and maintain their equipment satisfies the mandate of 'due diligence'put forth by the various legislations. The auditing and reporting capabilitiesof MSSPs are causing many customers to utilize the information found in theirweb-based reports to meet the requirements of legislation and audit teams andavoid the penalties for non-compliance.

This Frost & Sullivan research examines the key drivers and challenges inthe MSSP market. The analysis focuses exclusively on remote monitoring andmanagement of customer premise equipment (CPE) security devices - Noting theimpact of various verticals and technologies and the entrance of telecomcarriers into the MSSP market.

Growing MSSP Competence Critical to Gaining Customer Confidence

Since the market\'s early years, MSSPs have had to repeatedly prove theircompetence to clients that doubted the financial stability of start-upcompanies. "With the market's evolution and the increase in MSSP competenceand capabilities, several satisfied customers have validated the MSSP model ?Driving an increasing number of administrators to opt for outsourced securityalternatives," says Jason Wright, Program Leader of Security Technologies.For tasks such as security ? Outsourcing offers a host of advantages overin-house solutions. These include cost and time saving, and, most importantly,the freedom to focus efforts on core competencies and other IT initiatives.

Since the network is more frequently attacked during non-business hours,hiring around-the-clock security staff adds to the cost of an in-house solution.MSSPs are earning the respect and trust of clients through their undeniablevalue proposition of leveraging the expertise of seasoned analysts to provide24X7X365 security monitoring and management.

Better Positioning Permits MSSPs to Maximize Market Growth

Initially characterized by numerous participants providing overlappingservices, the MSSP market has slowly evolved to expose only those providerscapable of providing excellent value-added services to their clients. MSSPmarket shakeout has resulted in fewer competitors that are finding theirrespective focal points and capitalizing on market positioning. "Moreover,with high customer satisfaction and retention, MSSPs can increase revenues fromexisting customers by positioning themselves as solutions partners instead ofservice providers," explains Wright. These tighter relationships facilitategrowth from within the MSSPs' existing customer base as their servicecapabilities and the types and number of devices they monitor increases.

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TABLE OF CONTENTS

1 EXECUTIVE SUMMARY

• Executive Summary
  • Market Overview and Definitions
  • Key Market Drivers and Restraints
  • Key Findings and Conclusions

2 TOTAL MSSP MARKET

• Market Drivers and Restraints
  • Market Engineering Measurements
  • Market Drivers
  • Market Restraints
• Market Trends and Forecasts
  • Revenue Forecasts
  • Service Analysis
  • Vertical Market Analysis
  • Technology Trends
  • Distribution Channel Analysis
  • Pricing Trends
  • Legislation and Certification Trends
• Competitive Analysis
  • Market Structure
  • Market Share Analysis - Leaders
  • Market Share Analysis - Challengers
  • Market Share Analysis - Contenders and Specialists
• Frost & Sullivan Awards
  • Market Leadership
  • Technology Leadership
  • Customer Solutions Excellence
  • Customer Satisfaction Leadership