In a new research report, Frost & Sullivan found Verizon Business to be one of the top providers, based on market share, of managed security services around the world. Of 23 providers included in the report, only Verizon and IBM ranked in the top tier.
In the report, "Global Managed Security Service Providers Rollup," Frost & Sullivan analyzes the growth of the global MSSP market, as well as the various providers delivering services, including integrators, pure-play security companies and telecoms. The report also identifies market drivers and restraints as well as product and technology trends and regional differences.
In its analysis of providers, Frost & Sullivan segments them into three tiers. Tier 1 is reserved for companies such as Verizon that have captured a significant share of the global market. The report notes that Verizon has "expanded within other regions of the world, hence increasing market presence."
The report also notes that in addition to Verizon's global reach, the company has been able to gain market penetration through its ability to bundle services, offer "clean pipes" (a cloud-based security solution delivered via the company's global IP network), and provide cost-effective pricing.
"Frost & Sullivan identified three areas -- cloud computing, mobility and virtualization -- to be key drivers in the growth of managed security services in the coming years," said Peter Tippett, vice president of technology and innovation at Verizon Business. "We are already delivering high-performance services in these high-growth areas. Combined with our global breadth and security know-how, Verizon Business is well-positioned to remain a powerful leader in the information security space."
According to the report, the global MSSP market overall is expected to grow at 18.5 percent a year and to reach $14.7 billion by 2016. The report notes that "growth is expected to continue as cyber threats increase and the stringent local and global compliance regulations evolve."
The report identifies the following key market drivers that will impact enterprise customers in their decision to outsource their security needs:
- Increasingly complex and diversified attacks, increased number of cyber crimes, and negative publicity caused by security breaches.
- Compliance requirements for business locally and globally.
- Cost control.
- Companies turning capital expenditures into operating expenditures to reduce IT costs and focus on core business.
- Shortage of security expertise.
The Frost & Sullivan report details global differences by region, highlighting the following significant trends that are likely to impact Verizon:
- Europe - "In 2009, the European market segment led geographically, representing 39.1 % of the global MSSP market with $1.7 billion in revenue. Compliance with regional and local regulations and standards has traditionally been the most important driver."
- North America - "Growth in this market is expected to increase in 2010, largely due to the increasing amount of complexity in securing an organization's infrastructure and the increase in advanced threats."
- Asia Pacific - "In Asia Pacific, organizations are having to implement an ever-increasing number of security technologies, but often find it difficult to hire and retain the highly skilled resources needed to manage them."
- Latin America - "The MSSP market in this region is in a developing stage, becoming increasingly popular and established in the IT outsourcing scenario. While other markets have reached a maturity stage, Latin America has become an emerging market for MSSP vendors."
Tippett added: "The trends in the Frost & Sullivan report dovetail with what Verizon is seeing in the market. We have developed our global security portfolio not only to align with our customer's current needs, but also in anticipation of what our customers will look for in the future."
The complete report can be purchased by clicking here.
In addition to Managed Security Services, Verizon Business offers governance, risk and compliance solutions, data loss and prevention solutions, and identity management solutions, all delivered by the company's more than 1,200 security professionals around the globe. More information is available by visiting http://www.verizonbusiness.com/products/security. The company also provides ongoing security insight and analysis via the Verizon Security Blog.
About Verizon Business
Verizon Business, a unit of Verizon Communications (NYSE, NASDAQ: VZ), is a global leader in communications and IT solutions. We combine professional expertise with one of the world's most connected IP networks to deliver award-winning communications, IT, information security and network solutions. We securely connect today's extended enterprises of widespread and mobile customers, partners, suppliers and employees - enabling them to increase productivity and efficiency and help preserve the environment. Many of the world's largest businesses and governments - including 96 percent of the Fortune 1000 and thousands of government agencies and educational institutions - rely on our professional and managed services and network technologies to accelerate their business. Find out more at www.verizonbusiness.com.