Cloud Security Market - Outlook ( ) for IT and Telecom

Transcription

1 Cloud Security Market - Outlook ( ) for IT and Telecom explore@researchfox.com

2 ResearchFox Consulting is an Indian market research and consulting firm based in Bangalore. We strive to provide our clients with research data and reports which they can trust and analyze. Insights gleaned from our detailed and comprehensive research reports helps our clients stay ahead of trends. ResearchFox serves clients with services from data collection to analysis and reports. ResearchFox has extensive sector expertise and its consultants are abreast of global trends and issues across industries. Our areas of expertise include Manufacturing, IT, FMCG, Healthcare, Automotive, Government Sector and NGO, BFSI and Retail. Disclaimer : This report is furnished to the recipient for information purposes only. Each recipient should conduct their own investigation and analysis of any such information contained in this report. No recipient is entitled to rely on the work of ResearchFox Consulting Pvt.Ltd. contained in this report for any purpose. ResearchFox Consulting Pvt. Ltd. makes no representations or warranties regarding the accuracy or completeness of such information and expressly disclaims any and all liabilities based on such information or on omissions therefrom. The recipient must not reproduce, disclose or distribute the information contained herein without the express prior written consent of ResearchFox Consulting Pvt.Ltd. Copyright ResearchFox Consulting Private Limited 2

3 Table of Contents 1. Introduction 1.1. Report Description 1.2. Objective 1.3. Scope of the Research 1.4. Regions Covered 1.5. Key Takeaways 1.6. Key Stakeholders 1.7. Key Terminologies 1.8. List of Abbreviations 2. Executive Summary 2.1. Executive Overview 3. Research and Forecasting 3.1. Research Methodology 3.2. Forecasting Methodology 4. Industry Landscape 4.1. Market Size and Growth 4.2. Competitive Landscape 4.3. Market Share 4.4. Company Classification 4.5. Region Outlook 4.6. Market Metrics 4.7. Porter's Five Forces Model 4.8. Key Drivers Analysis 4.9. Key Constraints Analysis Key Opportunities Identified Key Challenges Identified 5. Market Segmentation 5.1. Vertical IT and Telecom Market Size and Forecasting Key Drivers Analysis Key Constraints Analysis Key Opportunities Identified Key Challenges Identified 3

4 dfgfd dfgfdh dfgfh dfhgf Introduction 01 4

5 1. Introduction 1.1. Report Description Cloud security is moderately growing in emerging markets of APAC while higher growth numbers are projected for the North American market. Middle-East and Africa still remain premature due to lack of customer awareness and inconsistent network infrastructure. However, with no surprise, Israel houses few of the major cloud security companies and been a power-house for research and development. Enterprise level customers look to put cloud security services on high priority due to the sensitivity of the data they deal within cloud. In a nutshell, with the growing attacks on cloud-based services and incidents of data breaches, cloud security has started to get importance and this trend is expected to go high in the years to come.the report titled "Global Cloud Security Market" showcases an in-depth analysis of the overall cloud security market in terms of market size, segmentation for security service providers, end-users, geographies, security services, cloud environment, competition, market metrics and service provider analysis. This report also forecasts the growth numbers till 2018 (on a YoY basis) and hence suggests the Compound Annual Growth Rate for the estimated period.the report brings about a detailed description of the developed and emerging markets globally, service providers analysis bracketed as Enterprise/Small and Medium Businesses along with market across each service segment of cloud security (cloud IAM, SIEM, Security, Web Security, etc.) and cloud environment (public/private) Objective 1. Understand the cloud security market and hence forecast the same till Determine the market across service providers, end-users (Enterprise, Mid-market and SMB) and geographies (North America, South America, Europe, Asia Pacific, Middle-East & Africa) 3. Measure the market for various services in cloud based security till Perform a service provider analysis for cloud security vendors 1.3. Scope of the Research 1. Strategic analysis and market focus 2. Competitive landscape analysis 3. Report the latest market and technology trends 4. Strength, Opportunities and Attention (SOA) analysis 1.4. Regions Covered 1. North America (USA, Canada, Mexico and others) 2. South America (Brazil, Argentina and others) 3. Europe (UK, Germany, Spain, Russia and others) 4. Asia-Pacific (Australia, India, China, Japan, Singapore, and others) 5. 5

6 MEA (Israel, South Africa, UAE and others) 1.5. Key Takeaways The research conducted to understand Global Cloud Security market in different regions of the globe has revealed some valuable insights. Some of the key take away points involve: 1. The Global Cloud Security market has grown at a rapid pace in the last few years with the increase in attacks on cloud-based services and is expected to grow further with a moderate double digit number till North America continues to drive the market, Europe is second to best. 3. IT and Banking, Financial Services and Insurance among the top adopters of cloud security while E- commerce is the fastest growing. 4. Enterprise companies are the companies using cloud security services the most, however, in the next few years it is expected to reach the mid-market segment as well. 5. Cloud IAM and Security are the most revenue generating engines. 6. On-going trends in the cloud security industry suggest increased emphasis on product development Key Stakeholders 1. Service Providers: The cloud security service providers would understand the current market situation and can think on their growth path accordingly. 2. Product Companies: Product companies often speculate on their success without having a grasp of the overall market situation. This report would help them get a sense of the overall situation before investing in developing a product. 3. End-user Companies: Companies would understand the necessity of cloud security services and its advantages and about the companies that provide services across a region. 4. Global Investors: Global investors are always on a look out for emerging technologies or markets that would provide them with the best Return on Investment (RoI). This report would help identify the growth markets, which would yield better returns. 5. Consulting & Advisory firm: The ResearchFox report would help consultants get a grip of the latest happenings in the cloud security market. 6. Industry Watchers: Industry and trend watchers are always referred to as trusted advisors who follow markets. The report would add to their knowledge repository, creating value for their know-how. 6

7 1.7. Key Terminologies 1. APAC: Mainly includes Australia, India, China, Japan, Singapore and other nations in the region 2. Cloud and Infrastructure Service Provider: Cloud or Infrastructure service provider (e.g.: datacenter or a managedinfrastructure) rendering services based on a cloud environment 3. Enterprise: Companies with 250+ employees 4. Europe: Mainly includes United Kingdom, France, Germany, Spain and other European nations 5. IT Product & Service Provider: An IT company or conglomerate with a vast portfolio of IT products and services 6. MEA: Mainly includes Israel, South Africa, UAE and other nations 7. Primary Product: A security product which has an individual identity and generates sizeable revenue of the company's overall cloud-based security earnings 8. SMB: Companies with up-to 250 employees 9. North America: Mainly includes United States of America, Canada, Mexico and other North American nations 10. Secondary Product and Service: A security product or service which does not contributes significantly in the company's overall cloud-based security earnings 11. South America: Mainly includes Brazil and Argentina and other South American nations 12. Security Product & Service Provider: A security company providing services across multiple environments like on-premise, hosted and cloud. Cloud and network security providers are also categorized under this bracket 13. Telecommunications and UC Provider: A Telecommunications and Unified Communications major providing cloud-based security services 14. Tier I Competitor: A USD billion security company with cloud being a part of the overall service offerings 15. Tier II Competitor: A USD billion IT or Telecommunications/UC or Cloud company with cloud security being a part of the overall portfolio, not a pure-play security company 16. Tier III Competitor: A non billion USD company providing cloud security service 7

8 1.8. List of Abbreviations 1. APAC: Asia Pacific 2. BPO: Business Process Outsourcing 3. BCDR: Business Continuity and Disaster Recovery 4. BYOD: Bring Your Own Device 5. CAGR: Compound Annual Growth Rate 6. CAPEX: Capital Expenditure 7. CISO: Chief Information Security Officer 8. CRM: Customer Relationship Management 9. CSP: Cloud Service Provider 10. CXO: Chief Experience Officer 11. DoS: Denial of Service 12. DDoS: Distributed Denial of Service 13. DLP: Data Loss Prevention 14. ERP: Enterprise Resource Planning 15. HIPS: Host Intrusion Prevention System 16. HITECH: Health Information Technology for Economic and Clinical Health 17. IAM: Identity and Access Management 18. IDS: Intrusion Detection System 19. IPS: Intrusion Prevention System 20. InfoSec: Information Security 21. ICT: Information and Communications Technology 22. LAN: Local Area Network 23. MDM: Mobile Device Management 24. MEA: Middle East & Africa 25. NASSCOM: National Association for Software and Service Companies 26. NSA: National Security Agency 27. PAN: Primary Account Number 28. PCI: Payment Card Industry 29. PHI: Personal Health Information 30. RoI: Return on Investment 31. R&D: Research & Development 32. SaaS: Software-as-a-Service 33. SEA & APJ: South East Asia & Asia Pacific Japan 34. SEM: Security Event Management 35. SMB: Small and Medium Business 36. SME: Subject Matter Expert 37. SOA: Strength, Opportunity and Attention 38. SI: System Integrator 39. SIEM: Security Information and Event Management 40. SIM: Security Information Management 41. SSO: Single Sign On 42. SLA: Service Level Agreement 43. SMB: Small and Medium Business 44. TCO: 8

9 Total Cost of Ownership 45. UC: Unified Communications 46. USD: United States Dollar 47. VM: Virtual Machines 48. vsiem: voice Security Information and Event Management 49. YoE: Year of Establishment 9

10 dfgfd dfgfdh dfgfh dfhgf Executive Summary 02 10

11 2. Executive Summary 2.1. Executive Overview Disruptive Technologies has been the buzzword in the market, especially in the Information Technology sector. These new age technologies are affecting so intensely that leading companies are falling in line to adopt them and are forced to abandon those they earlier relied heavily on. Among them is the cloud computing technology which many see as a game changer in the IT services industry. With growth in SaaS, PaaS, and IaaS, the businesses are transforming themselves to become cloud centric and moving most of their operations and data to the cloud. As the cloud brings lot of cost advantage to businesses, it has also given rise to security breaches and increased attacks on cloud infrastructure and cloud based applications. To contain these security challenges, companies are adopting cloud security solutions and the cloud security market is fast growing. In 2013, the market for cloud security solutions was USD 3.47 billion and is estimated to grow at a healthy rate of 16.8% till The main reasons for the growth of these solutions have been attributed to 1. Increase in the incidents related to security breaches and threats to cloud where miscreants carry out targeted attacks for financial or intellectual gains 2. Need for increased protection as the attacks are growing more advanced and cloud alone has been incapable of warding off these attacks. 3. Improved awareness and trust among businesses about the cloud and as a result more and more businesses moving their resources to cloud thereby creating a need for cloud security. Information or Data explosion is prompting businesses to adopt cloud and companies are becoming extra cautious about their data and this is driving the adoption of cloud security solutions. Companies are finding cloud security solutions as a suitable addition to cloud as this give them more confidence about cloud and its credibility. Market for cloud security services has been analyzed in terms of geography, type of service providers and kind of service provided, end-users, major verticals using these services and the type of cloud environment preferred. Geographically, cloud security is seen to be more mature and yet growing in the North American and European markets. Enterprises are the top contributors to the revenue and in terms of type of security services, cloud IAM, and web security and encryption are expected to grow as both enterprise level companies and the small and medium businesses will see more adoption of these solutions. The service provider market is a mixture of pure security providers, IT and telecommunication providers as well as the cloud service providers. Going forward, as the confidence in public cloud grows among organizations, cloud security solutions protecting public clouds will gain more demand than the private cloud security. Among the verticals, IT, Banking and Finance and E-commerce will see increased adoption. Of late, this industry is witnessing a lot of partnerships where cloud providers are joining hands with cloud security providers to offer a cloud with integrated security. Also in the future, one can expect various mergers and acquisitions in this industry which would boost the market of cloud security. 11

12 The biggest challenge that lies ahead for service providers in this industry has been educating and convincing the customers that cloud in itself is not safe and would require additional cloud security to secure the data present on the cloud. Along with this, improper rules and regulations,increased employee mobility and enhanced attacks will be the reasons affecting this industry. 12

13 dfgfd dfgfdh dfgfh dfhgf Research and Forecasting 03 13

14 3.1. Research Methodology Base Year: 2013 Forecasting Period: Sampling The leading suppliers of each end-user product categories that were chosen to provide a larger representative sample. Purposive unit sampling was adopted for every service segment such as verticals, regions, end-users and others. This was resorted to, in order to elicit the appropriate inputs with regard to the qualitative growth aspects of the market Secondary Research The research methodology that was carried out was desk research through various journals, association reports, and in house database to build a knowledge base on various market service segments, product categories and industry trends. Various fact based data was analyzed. Some of the sources included: a. ResearchFox Knowledge Base: Previous data on the market has been put through a rigorous and comprehensive analysis to analyze the current state. b. Desk Research: Industry reports, annual reports, press releases, webinars, journals and publication, independent rating agencies and government statistics Primary Research Primary interviews were conducted among various stakeholders: Product and service companies Members of associations and alliances Subject Matter Experts and Evangelists Consultants and Strategists 14

15 Industry Information It was essential to understand the current industry landscape, market dynamics, security ecosystem and competitor metrics. To estimate the global market, Chief Experience Officers (CXOs), Marketing Heads, Sales Managers and product stakeholders were interviewed Technical Information In addition to the interviews with leading participants for industry-related information, ResearchFox conducted interviews with Research and Development (R&D) and Design and Development teams to understand the current usage of the products by service type and also to find out the emerging trends. Finally, interviews with suppliers were conducted to cross check the validity of information and also to understand the emerging trends in the end-user segment. The detailed methodology for primary research is outlined below Primary Interview Questionnaire Design ResearchFox developed a detailed questionnaire, which was used by the analysts as a guide for their discussions. This process ensured the collection of all necessary data. The questionnaire was designed to elicit unbiased industry level data (market size, production, sales, and others), that had check points (questions such as company level information and their position in the industry acted as check points) to ensure accuracy of the data. The questionnaire included the following sections: 1. Industry level information 2. Characteristics and Dynamics 3. Company-specific information 4. Market segmentation data Interview Questionnaire Test and Validation Following the design of the questionnaire, ResearchFox carried out some initial interviews to verify that the appropriate market and technology data was generated. After the final design of the questionnaire, ResearchFox began full scale primary research. Specific companies targeted for primary research interviews were selected based upon market participation. Higher was the entity's profile, more attractive was the entity. 15

16 Interview Process As participants respond in the course of an interview, ResearchFox analysts are trained to move from lower priority and/ or sensitive topics to increasingly key and/or sensitive topics in response to the interviewee's behavior. This responsive and reflective interview process, combined with the analysts' ability to discuss the industry and technical issues in an open and sharing environment, allows ResearchFox to probe for key data, operations, and competitive information. Multiple contacts within a single organization and with an individual are often planned and/or staged in order to optimize and complete the information gathering process Research Validation At a point, when 20 percent of the research interviews and/or data collection had been completed, ResearchFox consultants evaluated the preliminary findings to assure that up-to-date results are in line with project objectives. The analyst team analyzed the information from the interviews and information was validated through a combination of the following validation techniques: Cross checking with other primary data and previously developed in-house research Review of secondary information, such as trade journals, annual reports and industry directories 16

17 3.2. Forecasting Methodology Step-by-Step Methodology for Market Estimation and Forecasting Market Estimation and Forecast Methodology, 2014 Step 1 Method Understand the market mechanism for the market through structured, systematic and theoretically established norms of analyzing, designing, introducing and quality assurance of the market estimation 2 Measuring the various market drivers, constraints, opportunities and challenges at regular intervals of time 3 Integrate expert-opinion of discussions in consultation with the ResearchFox Analyst team 4 Market estimation and forecast calculation 5 Delphi method and Causal Analysis used as and when required 6 Rigorous quality check with heads of Research Team, Subject Matter Experts and Consultants before final publication Source: ResearchFox Significance and Importance of the Market Forecast, 2014 Sr. No. Significance and Importance 1 Helps revisit on the company's R&D investments 2 Keeps the Sales and Marketing team posted on the market prospects 3 Strategize investment and expansion plans 4 Improve business planning 5 Helps create business aims and set sales figures within the company 6 Aware of the current market competition 7 Support plans for Merger and Acquisition (M&A) Source: ResearchFox 17

18 About ResearchFox WHAT WE STAND FOR We strive towards helping our customers take informed decisions by providing different perspectives for business. We don't believe in flashing LOGOs but are proud to mention that we have been helping all sizes of businesses since our inception. We are glad to have contributed in our own little way towards making a business successful. Whether you are a start-up or a large enterprise, we assure equal treatment to all, after all "Customer is King"! THE TEAM We are a bunch of 25 people with handful of grey hair between us. Our humble experience of around 75 man years in market research and business consulting has led us to believe that this industry is ripe for disruption. With the advent of enterprise consumerization and rapid digitization across industries, days are numbered for traditional business models of market research and consulting services. We make all efforts to bring different (fresh) perspectives to Market, Competition, and Growth of your business. Contact Us: Suggest a Report Topic: Report topics are approved based on number of users with the same suggestion and users are notified when the topic is approved. If you prefer to customize a report, or would like to get your report done exclusively in less than a months time! Bangalore Hyderabad Pune Philippines # 4 & 5, 1st & 2nd Floor, # 104 & 105, 1st Floor, 6th Floor Pentagon P-2, L29 Joy Nostalg Centre, 1st Cross, Bhuvana Towers, Magarpatta City, 17 ADB Avenue, Krishna Reddy Colony, CMR Building, Hadapsar, Ortigas Center, Domlur Layout, Sarojini Devi Road, Pune , Pasig City, Manila, Bangalore , Secunderabad , India Philippines India India Phone: explore@researchfox.com Phone: explore@researchfox.com Phone: explore@researchfox.com explore@researchfox.com The information contained here in is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. 41