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The Future of Asia-Pacific MSS Marketing

Sunday, August 1st, 2010

Amidst the prevalent global network se¬curity threats, Asia Pacific Managed System Security rose to the occasion and emerged victorious in terms of growth and popularity. According to the article entitled “Escalating Security Threats Trigger Growth in the Asia Pacific Managed Security Services” posted on www.research¬andmarkets.com, such success was due to the fact that more and more organizations cannot handle the complexity of running an efficiency of Security System Management.

These organizations are turning to someone for help and Asia Pacific MMSservice providers are the beneficia-ries. Most of these businesses and organizations also see the practicality and the efficiency of contracting third-party entities. The realization that a security system is very much important for crucial company and consum¬er data has been part of these organizations’ concerns. Acost-effective means of securing and managing such a system ais gaining popularity. The article also clearly for¬tifies this trend by stating that the MMSmarket gained a good 10.8 percent growth on a year-on-year basis. Ap¬parently, total revenue of $1,140.7 million was recorded for 2008. There is also an expectation of a CAGRgrowth of 19.7 percent for 2008 until 2010. Huge corporations and businesses remain the primary customers of these outsourced services. The article stated that the main rea¬son behind the growing participation of China, Vietnam and Philippine’s developing market is the local service players. It also listed the barriers for growth. These are de-regulation, lack of telecom, undeveloped profit model in MSS, and the security services’ need for a high-level of expertise.

Frost & Sullivan expects that Asia managed securi¬ty service will gain more ground in 2015 and will be worth $4 billion. Revenues are also expected to rise on a yearly basis with an estimated 19.7 compound growth in a span of five years. In the Asia Pacific region, it is the large enterprises that make up the 75 percent to¬tal revenue. Cathy Hong, an industry analyst for Frost and Sullivan also believes that the small- and medium-sizes businesses will eventually mature in terms of us¬ing outsourced service providers. Hong expects that rev¬enues will shoot up 18.2 percent from last year and will be close to $1.55 billion. In an interview she said: “As network security risks continue to mount and compli¬ance mandates become more stringent, organisations are forced to implement an ever-increasing number of security technologies. The managed model is a compel¬ling option for SMBs who can ill-afford large capital ex¬penditure (CAPEX) on security solutions, nor cope with the complexity of an endless onslaught of newer and increasingly targeted threats.” She further claimed: “As SMBs realise the economic sense in the shared infra¬structure model, the attraction quotient would ramp-up significantly, particularly for hosted security services where the equipment is owned and housed at the ser¬vice providers’ premises and users need only pay for on-demand services.”

In the Frost & Sullivan research entitled “Asia Pacific Managed Security Services (MSS) Market” specialists de-scribe device management services in different models in analytical details. Such models are hosted, customer premises, equipment and (CPE)-based. This study also revolves around three important elements. These are hosted service management/monitoring services, assess¬ment services. It also reveals that the hosted security service that are more in the demand checklist for large enterprises are monitoring and management services.

Frost & Sullivan’s Network Security Research and Consulting is a team of market analysts, consultants and research executive is a team that globally offers industry analysis, growth and custom consulting, mar¬ket research and forecasts that assists firms’ growth. To come up with timely strategic market intelligence, they focused on motoring and evaluating the Intrusion De¬tection and Prevention Systems, Security Event Correla¬tion, Managed Security Services, Web Application Fire¬walls, SSLVPN, Hardware Authentication Devices and other related security systems.

Related studies

On a similar note, Vivien Yeo of ZDNet.Asia pointed out a study made by a company called Symantec Hosted Services. This study was conducted to measure the will¬ingness of Singaporean-based businesses to accept secu¬rity service outsourcing. The result of this study done by 104 ITheads was highly favourable to such a service. Sy-mantec announced that one in four companies actually adhere to such type of service. 55 percent of these Sin-gaporean companies, although not currently making use of such service, are planning to do so in the near future. In their statement, Symantec revealed that “Most respon¬dents believe that security expertise is the top benefit of a hosted security service, as compared to having in-house ITpersonnel who may not have the necessary expertise or resources to keep the system updated and effectively protected against constantly evolving cyber threats.”

Examining the system

In his “Market Overview: Managed Security Servic¬es” article, Steve Hunt together with other analysts ex¬plained that Managed Security Services is an umbrella term that includes integral categories of services. These categories include on-site consulting, remote perimeter management, and product resale, managed security monitoring (MSM), vulnerability/penetration testing and compliance monitoring. Hunt further stated that there is a trend of outsourcing security services. According to him, this trend of looking for outside help is caused by cost-reduction initiatives and solutions to personnel shortage. Installation, maintenance and monitoring of related hardware and software and direct hiring of dedi¬cated and expert staff is looked upon as auxiliary costs by a number of companies.

On the website www.infosectoday.com, Grant Geyer, vice president, Global Managed Security Services, Sy¬mantec Corp. enumerated the four classes of security service providers. These are Strategic Outsourcers (SOs) Telecommunication Providers, Enterprise Pure Plays and Boutique Pure Plays. Strategic Outsourcers offer the complete outsourced solution while Telecommuni¬cation Providers provide additional security elements and “in-cloud” capacities. Enterprise Pure Plays on one hand are software companies that include MSSin their main portfolio and Boutique Pure Plays, on the other, is focused on MSSmajorly with just a little professional service programs as complimentary. He warned that al¬though there are a variety of service providers out there for companies to choose from, the outsourcer and the outsourced security must be examined carefully so that they match the client’s needs.

Frost and Sullivan’s Cathy Hong claimed that larger enterprises are more inclined to outsource remote moni¬toring and management as opposed to hosted services that offer the seemingly unpopular “cloud model.” This model is perceived to strip the client of the actual con¬trol of the system. This statement is proven when the firm’s study revealed that the most outsourced functions in 2009 are monitoring or management services coupled with 24-hour monitoring and log analysis. Such services account for about half of the MSStotal net earnings.

Is MSS Truly Necessary?

Sandra Palumbo in her study entitled “The Managed Security Services Opportunity” pointed out that security is a sophisticated challenge for contemporary business¬es and consumers. As the world becomes smaller and smaller due to globalization and technology develop¬ment, threats to the communication system are becom¬ing imminent. In the early years, businesses are faced with hackers and viruses. Nowadays, there are more well-organized fraudulent attacks that aim at stealing a large number of information for financial gain. As this pres¬ents a headache for business owners and administrators, the ordinary consumers may also be inclined to be weary with security attack issues. These may lead to a drifting focus on the business core, losing consumer confidence and looking for business alternatives altogether.

As a response, there has been a fast demand for secu¬rity systems and evolution. Security of data whether per¬sonal or business is such a tremendous challenge that it requires not only properly deploying and setting the needed security system but monitoring and updating solutions. These are tasks that require knowledgeable and well-trained staff. Unfortunately, more often than not, the expertise and cost allocation needed to quickly counteract system vulnerabilities is usually beyond the reach of several enterprises.

Palumbo further discussed that as security threats continually to evolve and become sophisticated, the small and medium sized businesses together with con¬sumers are failing to win the battle. By simply letting an expert group handle the situation, companies will save time and resources. In addition, security system technol¬ogy is constantly changing as it keeps up with the equal¬ly growing number of threats. Being partners with an external service provider will ensure a security system that is not only safe but consistent with the times. The forecast is that the managed security system industry will have a compound annual growth rate of 14 percent from 2006 to 2010.

The Final Note

There is no doubt that there is a great number of busi¬ness online environments out there that are seeking to secure their business and client related transactions. Just in the financial scene, thousands of project managers of banks and private financial institutions in the market are given the task of creating online initiatives but are finding themselves troubled with online security enforce¬ment and maintenance. The existence of Managed Secu¬rity Systems service providers is a key to such troubles be¬cause of its comprehensive solution, time efficiency and cost effective nature. An existing problem for some is an opportunity for others. This is the perfect example of a win-win situation for both parties. It is a simple idea that the world seems to adopt quite comfortably, especially in the Asia Pacific region.

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