Infonetics: Cloud-based security will jump to $18M market by 2016

DDoS attacks, BYOD drive more enterprises to adopt service
Tools

While businesses are still getting their heads around how to best leverage cloud services, a new Infonetics Research report released this week indicates that cloud-based security will be a big driver, rising 83 percent by 2016.

Infonetics CPE & cloud revenue 2012Not surprisingly, the desire by enterprises for more managed security services is due to the growth in network security issues. Infonetics said that the "volume of network security attacks is up significantly in 2012, with more threats coming—or appearing to come—from trusted sources."

A likely source of these attacks comes from enterprises allowing their workforce to use their own wireless devices (e.g., smartphones and tablet computers) on their networks, otherwise known as the BYOD (Bring Your Own Device) trend.

"As the variety of devices, platforms, and apps grows and properly securing them becomes more complex, so grows demand for managed security services, even in the midst of some lingering economic malaise," said Jeff Wilson, principal analyst for security at Infonetics Research.

Wilson added that from a regional perspective, "Cloud-based security services in particular are gaining momentum, fueled by North America and Greenfield opportunities in developing markets in Asia and Latin America.

Although large enterprises will continue to lead spending in the managed security services category, by 2016 medium-sized organization spending will be on par with that of large companies.  

This has prompted various vendors and Internet companies such as Google (Nasdaq: GOOG) and Microsoft (Nasdaq: MSFT) to integrate content security into their larger business applications offerings, while Prolexic and Verisign are offering Direct Denial of Services (DDoS) services.

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