The worldwide market for managed security services will reach nearly $4.9 billion in 2006, up from $1.3 billion last year, according to research firm In-Stat/MDR.
More companies will outsource their security as threats grow from both inside and outside the corporate network, the firm said in its forecast, released Monday.
SMBs with 1,000 to 4,900 employees are and will continue to be the biggest buyers of managed security services due to their lack of security personnel and expertise, according In-Stat/MDR.
The market for outsourced security has undergone a massive shakeout with companies either going out of business or selling off their managed security operations. Most recently, Symantec acquired Riptech, a managed security provider in Alexandria, Va.
Despite the acquisitions and dot-com failures, there are a number of factors driving growth of managed security services, In-Stat/MDR said. Key drivers include added and expanded services, services offered on a trial basis and the entrance of well-known hardware vendors to the market.
Jaclyn Bumback, an analyst at InStat/MDR, said the many different types of providers in the market--from traditional software vendors such as Symantec to small local companies--makes it difficult to cite the most successful players in the segment.
While it's too soon to predict how Symantec will fare in the managed security space, its well-known brand name likely will make it successful, she added.
The Yankee Group, a research and consulting firm, also released Monday a rosy forecast for managed security services. The firm predicted the market for vulnerability scanning and security assessment services will grow to almost $190 million by 2006 from $45 million last year.