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Threats Drive Demand for Managed Security Services

The global managed security services (MSS) market will grow rapidly with the ongoing move towards cloud computing, the adoption of bring-your-own-device (BYOD), and as new cyber security laws require IT organizations to improve their security posture.

Sophisticated threats, such as targeted attacks, advanced persistent attacks, and larger distributed denial of service attacks are pushing enterprises to adopt a more mature approach to IT security, thereby increasing the market opportunity for MSS providers.

According to the latest worldwide market study by Frost & Sullivan, the MSS market earned revenues of $7.83 billion in 2014 and is forecast to reach $12.78 billion in 2018.

The market in  Europe, Middle East and Africa (EMEA) will remain the largest. Moreover, security asset management and monitoring (SAMM) services will represent the prime market segment.

The adoption of cloud-based SAMM will gather pace as the need for real-time security intelligence and protection, big data analytics and advanced targeted threat protection heightens.

"The enforcement of the new EU Data Protection legislation in 2016 and in particular increased awareness of the threat of targeted attacks will prompt firms in EMEA to turn to MSS providers," said Beatriz Valle, senior analyst at Frost & Sullivan.

In North America too, F&S believes that stringent regulations and increasing governance complexity will spur MSS adoption, particularly in the healthcare, banking and retail sectors.

Although the returns on an MSS investment become evident after a targeted attack has taken place, savvy CIOs realize that the potential revenue losses and reputation damages an attack can cause are reason enough for preemptive action.

However, some IT leaders still underestimate the risk and do not perceive their enterprise as a likely target of cyber attacks -- they're oblivious to the scale of the problem and fail to protect their commercial assets from these known threats.

"Educating customers is a crucial part of the job for vendors," explained Valle. "MSS providers must also progress from merely generating security alerts to proactively staving off or resolving security breaches in order to keep up with the fast-evolving threat landscape."

Furthermore, according to the F&S assessment, providers must ensure that they fully understand client requirements and establish a sound provider-customer relationship to strengthen their competitive advantage in the global MSS market.

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