Security Information And Event Management (SIEM) Market - Outlook ( ) for Education
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1 Security Information And Event Management (SIEM) Market - Outlook ( ) for Education 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. Industry Education Market Size and Forecasting Key Drivers Analysis Key Constraints Analysis Key Opportunities Identified Key Challenges Identified Sub Segments Region : North America Region : Europe Region : APAC Region : South America Region : ROW 3
4 dfgfd dfgfdh dfgfh dfhgf Introduction 01 4
5 1. Introduction 1.1. Report Description With growing usage of Internet, businesses across the globe are using web based applications in their dayto-day operations. Increasing number of employees and other stakeholders access the company?s digital assets regularly. It becomes next to impossible for the in-house incident response team to keep a track on who is accessing what content and at which point of time. With growing traffic on the network, they would also fail to keep a track on the network related activities and these lapses could invite trouble to company?s digital assets in the form of cyber threats or attacks. Keeping a tab on these things manually is proving a painful activity to the personnel. And, as this process involves sensitive issues like the data security of the company, any kind of delays to respond to suspicious activities may prove costly to the company both financially and from the reputation point-of view. To counter these, businesses, especially large enterprises have started implementing Security Information and Event Management (SIEM) solutions that automatically monitor and store the log and activity information which can be used by the company to negate any kind of cyber threats. The growing incidents of sophisticated attacks where businesses are being targeted irrespective of their geographical presence and despite of having all necessary IT infrastructure in place is worrying the businesses. This, along with the existing strong compliance policies of the countries are proving to be catalyst in the growth of IT security solutions like SIEM. Because businesses are now realizing that it is better safe than sorry. The market for Security Information and Event Management (SIEM) solution is catching up and this report provides deep insights on how the market is expected to fare in the next five years. It also presents interpretative and easy-to-understand facts on how the current SIEM market is segmented based on the deployment type, the major verticals that have been implementing these, the end-user group of these SIEM solutions and also based on the geographic regions Objective 1. To understand the Security Information and Event Management (SIEM) market across the globe by addressing the challenges faced by the industry with regards to the adoption of Enterprise SIEM solutions. 2. To estimate the size of present global Security Information and Event Management (SIEM) market and to forecast its future values Scope of the Research Scope of the research was limited to understanding the market share across segments. Key drivers, constraints and challenges along with their impact on various business functions in both short term and long term were addressed. Segmentations and forecasting were done based on: 1. End-User 2. Verticals 3. Deployment Type (On-premise vs Cloud vs Hybrid) 4. Region Based Segmentation 5
6 1.4. Regions Covered 1. North America (US, Canada and Mexico and other countries) 2. Europe (United Kingdom, France, Germany, Italy, Spain and other countries) 3. APAC (Australia, India, China, Japan, Singapore and others) 4. South America (Brazil, Argentina and others) 5. RoW (Middle East and Africa, South America, Russia and other countries) 1.5. Key Takeaways 1. North America is growing at a much higher rate than other geographies in terms of adoption and the revenue generated from this region is highest. Europe and APAC are far behind in this race of adoption. 2. The market for Security Information and Event Management was USD million in 2014 and is expected to grow at a CAGR of close to 12.85% till Deployment wise, traditional on-premise SIEM solutions have the highest market share but Cloud based SIEM and Hybrid SIEM solutions are slowly eating up this market share and are experiencing greater adoption rate than on-premise SIEM solutions. 4. Enterprise level businesses still remain the major consumers of these solutions and even the small and medium level businesses are also catching up in the race of adoption. 5. Financial institutions, Government organizations, IT & Telecom, Retail, Education and Healthcare companies have emerged as the major users. This is because, usage of Internet among these companies is rising and hence would require proper security solutions in place to protect the network infrastructure Key Stakeholders 1. Enterprise Security Information and Event Management solution and product providers: Enterprise SIEM solution providers will be able to gauge the market more accurately as this will assist them in better decision making. Also, the product developers would be able to develop products according to the requirement of the customers. 2. End-User companies: Report will provide the end-users, a more clear picture on the solution provider demographics so that they can choose among the best. 3. Global Investors: Those investors who look to fund new and budding cloud based SIEM solution provider start-ups, will get clear picture about the market and its trends. 4. 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. Europe: Mainly includes United Kingdom, France, Germany, Spain and other European nations 3. MEA: Mainly includes Israel, South Africa, UAE and other nations 4. North America: Mainly includes United States of America, Canada, Mexico and other North American nations 5. South America: Mainly includes Brazil and Argentina and other South American nations 6. Enterprise: Companies with an employee headcount above Mid-Size: Companies with an employee headcount between 501? Small-Business: Companies with an employee up to BYOD (Bring Your Own Device): Bring Your Own Device refers to the policy of permitting employees to bring their own devices, such as laptops, smart phones and tablets to their workplace. 10. Security Information and Event Management (SIEM): A security management approach that help companies to identify and prevent security breaches early. 11. Health Insurance Portability and Accountability Act (HIPAA): A federal act that makes easier for people to uphold the confidentiality of their healthcare information or data. 7
8 1.8. List of Abbreviations 1. BYOD: Bring-Your-Own-Device 2. USD: United States Dollar 3. CAGR: Compound Annual Growth Rate 4. USA: United States of America 5. APAC: Asia-Pacific 6. IT: Information Technology 7. RoW: Rest of the World 8. UK: United Kingdom 9. R&D: Research and Development 10. SMB: Small and Medium Businesses 11. HITECH: Health Information Technology for Economic and Clinical Health Act 12. GLBA: The Gramm?Leach?Bliley Act 12. MASSIF: Management of Security information and events in Service Infrastructures 13. NIA: National Investigation Agency 14. UAE: United Arab Emirates 15. SIEM: Security Information and Event Management 16. FFIEC: The Federal Financial Institutions Examination Council 17. PCI DSS: The Payment Card Industry Data Security Standard 18. SSN: Social Security Number 8
9 dfgfd dfgfdh dfgfh dfhgf Executive Summary 02 9
10 2. Executive Summary 2.1. Executive Overview Internet is turning out to be a major facilitator for many of the operations of the businesses. Many of the departments like sales and marketing, research & development, operations have been using internet to improve their efficiency. Growing use of Internet means, multiple users accessing the company?s digital assets at the same time. On a positive note, this would improve the efficiency of the entire company, but growing network activity would also mean, need for more monitoring and management of events across the company?s digital assets. The incident response team of the company come under immense pressure and this would hamper quality of their work. This would also invite risk of data breaches as the manual detection of suspicious activities would amount to lapse of crucial time that would otherwise save the company from cyber-attacks. Use of manual processes are generally time consuming and would not be as accurate as the automated processes. And any delay in timely detection of cyber threats would result the data thefts and other related security breaches. To counter these issues, many of the enterprises these days are actively adopting necessary IT security solutions which includes Security Information and Event Management (SIEM). The demand for SIEM solutions are steadily increasing, thanks to the growing security threats. Also, the existing compliance regulations are prompting many of the businesses to adopt these solutions voluntarily in order to avoid hefty fines. Security Information and Event Management is a combination of Security Information Management (SIM) and Security Event Management (SEM). While SIM is responsible for collection of login information and other related data and generate an automated report for further analysis, SEM draws some analysis and trends from the information events that has occurred. Combined together, SIEM provides a comprehensive real time analysis of on-going activities and report these activities to the company personnel automatically so that the company can initiate any preventive measures in case of detection of any suspicious activities or cyber-attacks. Implementation of Security Information and Event Management solutions is happening among enterprises to adhere to certain compliance standards. In countries like the USA and UK, the existing compliance standards makes it mandatory for companies to have certain IT security solutions which includes SIEM as well. Several of the IT product based companies, Network Security companies, IT security companies and cloud service provider companies dominate the service provider market and many of the new start-up companies are also entering the arena by introduction of cloud based SIEM solutions. Security Information and Event Management Market Growing Steadily With growing frequency of attacks, security monitoring solutions like SIEM is expected to flourish further. The?Global Security Information and Event Management Market? Outlook ( )? report suggests that the overall market was valued at USD million in 2014 and is expected to grow at a steady CAGR of 12.85% till The introduction of cloud based SIEM solutions and also the Hybrid SIEM solutions would also add to the growing market. North America? Highest Revenue Contributor with Highest Adoption Rate; Europe and APAC? A?yet-to- 10
11 grow? Market. As always, North America, especially countries like the USA and Canada have been the top adopters of this technology and the region contributes the most in terms of revenue. The main reason being, that businesses here are vulnerable to attacks and the frequency of attacks is way too high when compared to other regions. Europe and Asia-Pacific market have limited adoption and the revenue generated from them is comparably low. Europe, in particular is showing some positive signs of growth but the revenue generation is still less. Asia-Pacific market, on the other hand is a mixed bag, where businesses of developed countries like Japan and Singapore are adopting the solutions, but growth still lags in countries like India and China. Going forward, as the business related activities here heats up, the rate of adoption is expected to go up. On-Premise SIEM solutions losing its market share to Cloud and Hybrid SIEM. No doubt on-premise SIEM solutions contribute the most to the overall SIEM market. But, due to the complexities involved in terms of adoption, high initial investment costs and introduction of cloud based and hybrid SIEM solutions is driving businesses away from on-premise deployment model. The adoption rate of cloud and hybrid SIEM solutions is higher and is expected to grow further. This is because, going forward, all those enterprise level businesses who earlier adopted on-premise SIEM solutions would also start partially adopting cloud based solutions. Along with this, small and medium businesses across the globe are also expected to start adopting these solutions. Enterprises are the major consumers, Financial Services are the top adopters. Enterprises are the major consumers of these solutions as they are the most frequently targeted end-user segment of all. These businesses also consists of large number of employees who use Internet to reach out to their customers. This has prompted them to adopt SIEM solutions which can reduce the manual tasks and automatically detect the risks or any other abnormal events. Among the verticals, Financial Services companies have emerged as the major users of these solution. Many of banking, insurance and other finance related companies across the globe are facing innumerable attacks every day-in and day-out. To counter these, many of these businesses have been implementing these solutions. Businesses in this vertical are known to seek advanced forms of Security Information and Event Management solutions as well. The Underlying Challenges One of the greatest challenge for growth of SIEM market is the complexities involved in implementation of SIEM solutions, the skilled workforce required to effectively manage them and the high initial investment costs. A majority of these issues is now being addressed by the introduction of cloud and hybrid SIEM solution. But the user base of SIEM solutions now require more effective solutions which can counter the sophisticated attempts of attacks by early detection and reporting. Another notable issue is to educate the customers about the effectiveness of such solutions especially in the emerging markets. Most of these markets having limited technological exposure and do not dedicatedly use them in their operations. Convincing the customer about the necessity of such solutions would be another major challenge that provider companies have to concentrate upon. 11
12 With introduction of cloud based SIEM solutions and with making the existing solutions customer friendly, most of these challenges can be successfully addressed by the provider companies. The R&D teams of the solution providers have to constantly enhance their product features in order to deliver what the customer actually wants. 12
13 dfgfd dfgfdh dfgfh dfhgf Research and Forecasting 03 13
14 3.1. Research Methodology Base Year: 2014 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, 2015 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, 2015 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
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