Research and analysis on the IT security market. Prepared by Lee Mashburn in September 2012. Provides overview of market size, trends, and competitive landscape.
1. IT Security Market Overview
September 2012
Prepared by Lee Mashburn
Marketing & Product Management Executive
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Lee Mashburn and Elijah
2. The IT Security Market and Competitive Landscape
• This PowerPoint presentation overviews the IT Security
market. It has been developed as a result of over 100
hours of research and analysis.
• It provides a snapshot of the various IT Security sub-
markets; size, projected growth, and competitive
landscape.
• If you wish to see more detail, contact me at
lee.mashburn@aol.com
2
3. IT Market Overview 2012 Estimated
Computing
Hardware
11%
Software
7% $3.8 trillion market, $1.6 trillion excluding Telecom
Telecom 6% annual growth rate expected excluding Telecom
Services
46% IT security represents only 1.5% of total
IT Services
23%
IT security market expected to grow 12% through 2016
Cloud IT security will grow from 17% to 24% by 2016
Telecom
Equipment
13%
CY CY CY CY CY
CY 2010 CY 2011 2012E 2013E 2014E 2015E 2016E CAGR
Computing Hardware $375 $404 $421 $457 $496 $553 $592 7.9%
Software $244 $267 $280 $299 $319 $339 $362 6.3%
IT Services $793 $845 $856 $886 $920 $956 $995 3.3%
Telecom Equipment $412 $442 $473 $508 $538 $567 $593 6.0%
Telecom Services $1,603 $1,704 $1,721 $1,767 $1,816 $1,861 $1,898 2.2%
All IT $3,427 $3,662 $3,751 $3,917 $4,089 $4,276 $4,440 3.9%
HW, SW, Svcs $1,412 $1,516 $1,557 $1,642 $1,735 $1,848 $1,949
IT Security $19 $22 $24
Percent of Total 1.3% 1.5% 1.5% 12.0%
Copyright, Cogniti, Inc., 3
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4. The 2012 Top Priorities of the CIO
• CIOs are increasingly in step with CEO top
priorities
• Top CIO priorities:
– Business intelligence and analytics
– Mobility
– Virtualization
– Cloud computing
– Business process management
• Must derive insight, competitive advantage, and
tangible business benefit from the huge volumes of
data available across an enterprise – how?
– Master data management, customer analytics, data
warehousing, and visual information dashboards
• Must deliver information technology securely and
reliably
• Must help simplify operations, business
processes, products, and services
• Leverage cloud computing and outsourcing to
reallocate internal resources from routine system
maintenance toward more valuable tasks
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5. IT Security Sub-Markets
$25,000
$20,000
Network access control
Identity & Access Management
Sales in USD (millions)
Mobile device management
$15,000
Content aware data loss prevention
Secure web gateway
SIEM
Unified threat management
$10,000
Secure email gateways
Endpoint protection platforms
MSSP
Enterprise network firewalls
$5,000
$0
FY 2009 FY 2010 FY 2011 FY 2012E
5
5
6. IT Security – Most Google-Searched Terms, 2012
Managed security services
Unified threat management
Data loss prevention
Database security
Email security
SSL VPN
Endpoint security
Endpoint protection
Computer forensics
Identity management
Intrusion detection system
Fraud prevention
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000
No. of Google Search URLs
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7. Mobile Device
Management
IAM
DLP
UTM Secure Web
MSSP SIEM Gateway
NAC Enterprise
Network
Firewalls
Endpoint
Protection
Platforms
Key: Secure Email
Size of circle reflects relative 2012 market size Gateways
Vertical placement reflects relative growth rate 7
9. Managed Security Service Provider, MSSP
Gartner Magic Quadrant, Nov ‘11
Market Definition
Enterprises that optimize their use of managed security service providers
(MSSPs) can free up internal staff time for dealing with more business-
critical security functions if they select. Gartner sees continued strong, if
Verizon AT&T Dell SecureWorks
not spectacular, growth for managed security services in North America.
Symantec
IBM
An MSS portfolio can include unified threat management, data loss Bell Canada
Execution
prevention, security information and event management, log management, SAIC CSC
Integralis Solutionary
vulnerability scanning, and email security. Web-based portals typically serve HP
HCL CompuCom Savvis
as the primary means of communication about monitoring and management Perimeter
Wipro
Trustwave
services performed for customers.
Drivers: evolving compliance reporting requirements (PCI and FISMA), IT
staffing and budget constraints, increased availability and adoption of IT-
as-a-Service, expansion of Internet connection endpoints, the SMB North America Market
market, applications to prevent data loss, and SaaS for remotely-monitored
CPE.
Vision
Market Size, Worldwide Market Share
$8,000 Market Growth 3-Yr CAGR
Sales ($US million)
$6,000 22%
IT Security
$4,000 78%
$2,000 MSSP
MSSP Market
$0
0% 5% 10% 15% 20%
FY 2009 FY 2010 FY 2011 FY 2012E IT Security Market
9
10. Content-Aware Data Loss Prevention (DLP)
Gartner Magic Quadrant, Aug ‘11
Market Definition
Content-aware DLP tools enable the dynamic application of policy
based on the classification of content determined at the time of an
operation. These technologies and inspection techniques are used to Symantec
classify information content contained within an object – such as a file, McAfee
email, packet, application, or data store - while at rest (in storage), in use
CA RSA
(during an operation), or in transit (across a network); and the ability
Execution
Websense
to dynamically apply a policy – such as log, report, classify, tag, and Trustwave Verdasys
encrypt – and/or apply enterprise data rights management protections. Code Green
They can execute responses ranging from simple notification to active
blocking – based on policy settings. Trend Micro Fidelis
GTB Technologies
Safend
DLP technologies help organizations develop, educate, and enforce Pallisade
better business practices concerning the handling and transmission
of sensitive data. Used to its full capability, DLP is a nontransparent
control, which means it is intentionally visible to an end user with a
primary value proposition of changing user behavior. Vision
Market Size Market Share
$600 Market Growth 3-Yr CAGR
2%
Sales ($US million)
$500
$400 12%
IT Security
$300
$200 98%
$100 DLP 22%
$0
DLP Market
FY 2009 FY 2010 FY 2011 FY 2012E
IT Security Market
10
10
11. Security Information & Event Management (SIEM)
Market Definition Gartner Magic Quadrant, May ‘12
SIEM technology aggregates the event data produced by security
devices, network devices, systems, and applications. The primary data
source is log data but SIEM technology can also process other forms of
HP ArcSight
data. Event data is combined with contextual information about users,
IBM Q1 Labs
data, and assets. The data is normalized so that events from disparate McAfee Nitro
sources can be correlated and analyzed for specific purposes such as RSA (EMC) Security
Splunk
network security event monitoring, user activity monitoring, or compliance
Execution
NetIQ
Symantec
LogRhythm
reporting. This technology combines real-time security monitoring, LogLogic
SolarWinds
historical analysis, and other support for incident investigation and
Trustwave
compliance reporting. Deployment and support simplicity is an important
elQnetworks
attribute for all use cases because of the resource constraints of most IT Sensage
security organizations.
Features: behavior profiling, anomaly detection, threat intelligence, and
advanced analytics – to support the early detection of targeted attacks.
Drivers include real-time security monitoring and compliance reporting.
Vision
Market Share
Market Size
$1,400 Market Growth 3-Yr CAGR
5%
Sales ($US million)
$1,200
$1,000
$800 IT Security 12%
95%
$600
$400
$200 SIEM 14%
SIEM Market
$0
IT Security Market
FY 2009 FY 2010 FY 2011 FY 2012E 11
11
12. Threat
Intelligence
Incident & Access
Management
Data Loss
Prevention
SIEM
File Integrity
Monitoring
Enterprise Resource
Management
Security Information & Event Management (SIEM)
Application
Monitoring
• Analytics
• Reporting
• Ad hoc query
Behavior
• Log management
Profiling
Database Activity
Monitoring
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13. Cloud is the Future
Cloud computing is a style of computing where scalable and elastic IT-related
capabilities are provided “as a service” to customers using Internet technologies
Benefits Risks
• Increased agility • Security
• Reduced cost • Transparency
• Less complexity • Assurance
• Better focus on the • Lock-in
priorities
• Integration Cloud Computing Hype Cycle
By Gartner
• Enhanced collaboration
• Financial sustainability
• Easier to innovate
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Hinweis der Redaktion
This presentation was prepared by Lee Mashburn. Several of the slides and resulting insights will not be found elsewhere. Deep research and analysis spanning over 100 hours is distilled into market nuggets that might be useful to viewers.
We start out with an overview of IT market size, segmentation, and projected growth – which spans a #3.8 trillion market spend that is growing at 6% when we ignore all Telecom. Market data courtesy of Gartner.IT Security comprises just 1.5% of the total IT market – but is growing twice as fast at 12%. Various forms of research utilizing a number of sources were used to quantify the IT security market information.
This slide overviews the top priorities of the CIO; who faces a plethora of challenges to get more from BI tools, drive data to mobile users, transform conventional IT-speak into business language spoken by other C-suite members, to deliver IT securely and reliably, and to push the boundary of outsourcing the right work so internal staff can focus to help drive desired business outcomes.
IT Security is a large, fragmented market that spans 11 sub-markets. This particular view segments and compares these sub-markets by size and growth rate.The largest three markets, Enterprise Network Firewalls, Managed Security Service Providers, and Endpoint Protection Platforms comprise 70% of the total market.MSSP is growing at about 17-18% per year.
Mashburn Google-searched many terms associated with the IT Security space and built this graphic to visualize the most searched phrases occurring during the last 12 months.Information like this is valuable to determine search engine optimization key words and phrases – to increase brand awareness, thought leadership, and to drive traffic to websites and blogs. These are also key words to leverage throughout the sales process to target the right audience and to shorten sales cycles.
An infographic created by Mashburn to help quickly visualize key aspects of the IT Security market.The 11 bubbles each represent a sub-market. The size of each bubble reflects comparative size of a sub-market. The vertical arrangement reflects the relative growth rate of each sub-market – with slower growth areas on the bottom and faster growth rate areas at the top.MSSP is a large market ($6b/year) and is growing well at 17-18% CAGR.
This graphic required a great deal of time investment to research and construct.Mashburn looked at the entire IT Security market leveraging many sources (industry analyst reports, competitor websites, etc.) I was looking for ways to consolidate and simplify the fragmented market and to identify the most dominant or emerging competitors in the space.Leveraging Excel, I segmented each of the 11 submarkets and overlaid key vendors that participate in each submarket. I used color coding to highlight the vendor strength: dark green = very strong, light green = strong, yellow = medium.This exercise allowed me to find patterns and to group submarkets into larger, more primary markets – which are reflected by the bubbles above the Excel cutout. Net, net: seven submarkets have been condensed into a $15 billion market (left bubble) that is dominated by Cisco, McAfee, Symantec, etc. MSSP bubble, with key competitors, is on the right.
This infographic provides an at-a-glance snapshot into the MSSP submarket of IT Security – includes:- market definition and key drivers size, share of IT security, and growth rate key players as portrayed in Gartner magic quadrant
This infographic provides an at-a-glance snapshot into the DLP submarket of IT Security – includes:- market definition and key drivers size, share of IT security, and growth rate key players as portrayed in Gartner magic quadrant
This infographic provides an at-a-glance snapshot into the SIEM submarket of IT Security – includes:- market definition and key drivers size, share of IT security, and growth rate key players as portrayed in Gartner magic quadrant
A high-level visual of SIEM denoting the key data sources that feed it.
Cloud is the future and is emerging as a key deployment technology for IT security software and services. Cloud now comprises 17% of all IT security solution deployments – is projected to increase to 24% of total by 2016.