The worldwide market for information security services will nearly triple to US$21 billion by 2005, up from about US$6.7 billion in 2000, according to research released in September by International Data Corp. (IDC)
The growing corporate appetite for remote LAN, Internet, extranet/intranet, and wireless access services will drive the need for advanced information security services as technologies for circumventing network security systems continue to keep pace with the technologies designed to defend against them, explained Allan Carey, senior analyst with IDC’s Information Security Services research program.
Although representing the smallest commercial sector in terms of services spending in 2000, the small business category (i.e., firms with 100-999 employees) will represent the fastest-growing opportunity in this sector through 2005, reported IDC. The research indicates that as small businesses continue to transition their networks to high-bandwidth architectures capable of handling a range of applications, from e-commerce to wireless, these organizations will invest more aggressively in security-related services.
Carey noted that this market’s growth will come from clients who recognize the value of engaging third-party service providers skilled at developing customized security strategies that solve real business problems. By implementing a best-in-class security architecture coupled with continuous monitoring and management of the infrastructure, security service firms enable clients to mitigate the risks associated with their business, he said.
The financial services industry, with its emphasis on reliability and speed, as well as its need to conform to government regulation, will be the leading customer for these services, spending US$2.2 billion, IDC said. Financial services companies spent US$848 million on such services in 2000, the study said.
— With files from by Sam Costello, IDG News Service