Huge transformation has happened in terms of pattern of threat, which is forcing the vendors to be more innovative and augment capable, adding more features to increase the overall performance.

New borderless organizations have dramatically changed the definition of how, when, and where people work, causing a need to redefine the way security solutions are built and deployed. The driving factors include a new wave of mobility, virtualization, and cloud technologies that have forced IT security administrators to deal with a multidimensional problem and to rethink how security must be implemented and enforced.

To enable companies to run business without borders, organizations are introducing highly distributed security architecture that manages enforcement elements such as firewalls, web proxies, and intrusion-prevention sensors with a higher-level policy language that is context-aware to meet business needs. These next-generation scanning elements are independent of the physical infrastructure and can be deployed as appliances, modules, and cloud services. Better suited to address the current security challenges, the scanning elements are designed to know exact information - such as the name and role of the user.

Market Dynamics

The total network security market in the year 2011-12 is estimated at Rs. 1094 crore. The market has been growing at a CAGR of 14-15 percent.

The unified threat management (UTM) segment will continue to record aggressive growth in the next fiscal. The UTM device offers comprehensive security combining gateway content filtering, anti-spam, anti-virus, anti-spyware, intrusion prevention, and application intelligence and control. Content management is an upcoming technology that had prominence in the last year.

Trends have transformed from traditional single-vector attack to highly sophisticated, target-specialized, advanced threats. Huge transformation has happened in terms of pattern of threat, which is forcing the vendors to be more innovative and augment capable, adding more features to increase the overall performance.



Global Market

Worldwide security services spending is set to reach US$ 35.1 billion in 2011, up from US$ 31.1 billion in 2010. The market is forecasted to total US$ 38.3 billion in 2012 and surpass US$ 49.1 billion in 2015.

The IT management segment of security services is forecasted to grow from US$ 8 billion to US$ 14.9 billion in 2015, almost doubling the size of the market for using the outsourced management model.

This is largely driven by organizations looking at managed security service (MSS) providers as a way to maximize resources and lower the ongoing operating expenditures on security. Demand from small and medium business segments is also high, as they continue to look at external parties to provide with additional security expertise and resources to help them make right security decisions or provide security functions externally.

Consumerization Changing the Distributor and Reseller Pitch

The growth of consumerization is changing the way technology is used in workplaces and is changing the contacts value-added resellers need to have relationships with if they are to sell products and services.

Resellers have to develop relationships and an understanding of the requirements not just of security managers but also of the human resource department and the legal side of a consumerization rollout.

Distributors and resellers whine about the little margin for them from some security vendors. The vendors have tight monetary control. The revenue generated by the security vendors should be ascertained in the light of certain aspects such as the number of distributors, the distribution margin, stock left with resellers, and the frequency with which the distributors are changed.

With more pressure to deliver, the channel now finds itself marginalized when it is unable to sell technology without an appreciation for the growing number of stakeholders involved in the process.

Drivers

The proliferation of smartphones and the emergence of cloud-based services are redefining the mobile landscape and creating significant new revenue generating opportunities. From mobile banking to NFC to enterprise smartphone and tablet growth, mobile network operators are well positioned to capitalize on the popularity of next-generation services. But the phenomenal growth of such devices and services simultaneously leaves networks at the mercy of malicious attacks from hackers and fraudsters alike.

In order to secure new business and alleviate concerns of prospective clients, mobile operators must ensure their networks employ a multi-layer security matrix which can protect the signaling, control, and application layers.

With the global mobile security market forecast to reach US$ 14.4 billion by 2017, the opportunity is ripe for mobile-security appliances and software developers to assist operators in minimizing the risk of data breaches and unauthorized access to and loss of personal information.

Outlook

The growth of cyber threats, the influence of organized crime, and the security of mobile devices will make 2012 a pivotal year for banks and investment firms, since they tend to be in the forefront when it comes to security.

The increasing number of mobile devices in a geometric progression entails the increase of security risks. Any new smartphones, tablets, or other mobile devices open up another window for the attack, as each device creates another vulnerable point of access to network. Increased use of social media will also contribute to personal network threats.

Significant cost savings and efficiency of cloud are forcing companies to move to cloud computing. A well-designed architecture and operational planning of security will enable organizations to effectively manage the risks of cloud computing.

Organizations need to focus on raising awareness and internal monitoring to detect intentional and accidental insider access.

Recent analysis from Frost & Sullivan finds that the market, covering 14 Asia-Pacific countries, is expected to register a modest CAGR of 7.5 percent from 2009 to 2015, to gross revenue of just over Rs. 14,696.08 crore by end of 2015.

The rapid rise of the consumerized endpoint, the onset of virtualization and cloud computing, and the growing use of high-definition video conferencing are the three major trends. Each of these critical technologies is transforming business and forcing a fundamental change in security development and deployment.

The concept of a perimeter in an enterprise is blurring fast, and this has intensified the challenge of ensuring security across multiple access points. Now individual users have their own devices including smart phones that need to get accessed - breaking the device border.

Further, a combination of rapidly changing customer expectations and radically different technological advancements is driving a new generation of on-demand security services, which are transforming the way organizations operate and innovate. Organizations are innovating to address new network and security dynamics and develop new security architectures and solutions rather than pushing the same old point product strategies. 

Network security market is increasingly driven by the trend where standalone products such as firewalls, IPSec VPNs, intrusion prevention systems, and anti-virus/anti-spam come together across a single UTM appliance. The UTM market is recognized as the fastest growing component of the network security market for SMBs/enterprises, growing at a rate of 30-35 percent. Embedding several security functions in a single unit, these appliances bring several advantages to end-customers - multi-layered security, CapEx and OpEx reductions, and flexible deployment capabilities.

In another key trend, insider threats due to internal users leaves enterprises vulnerable to newer threat vectors. Unrestricted use of file-sharing applications like IM and P2P and multimedia downloads cause risk of data loss or leakage as well as bandwidth choking, draining the enterprise resources. Organizations require an identity-based Internet access and control mechanism - Cyberoam is at the vanguard of innovation with its patent-pending layer 8 technology, which ties security with identity, giving visibility and control on end-users.

Another key trend is the availability of security solutions, embedded with features supporting various compliance and regulatory norms that organizations have started following. For example, in telecom sector, according to TEC guidelines, operators have to pass security clearance before placing their purchase order for telecom equipment. Defense-related sectors are seeking EAL4 security certifications.