Security-as-a-service solutions gaining favor among midmarket companies, survey says
As security management becomes a larger line item on IT departments’ budgets, companies are increasingly turning to security-as-a-service (SECaaS) vendors to protect their assets, according to the recently released Network Security Market Study conducted by 451 Research. More than seven in 10 respondents said they would prefer a SECaaS solution, as opposed to 9 percent who prefer managed security service providers (MSSPs) and 19 percent who prefer on-premises solutions, CIO reported.
“We thought there would be a preference for the ease and simplicity of security-as-a-service solutions, but we were genuinely surprised by both the degree and urgency of the market demand,” said Ken Ammon, chief strategy and technology officer of study commissioner OPAQ Networks, in the press release. “Eighty-seven percent of respondents said their timing for migrating to this type of network security delivery model was within a 12-month time frame.”
Ample security demands high cost, time commitment
The study, conducted in the first quarter of this year, surveyed 301 IT security professionals at US midmarket companies of 500 to 2,500 employees. Three-quarters of respondents said they dedicated three to five full-time employees’ workloads to security management. Eighty-two percent said they spent between 20 and 60 hours a week to “procure, implement and manage security products.” The average company spent $178,000 on network security annually, amounting to 39 percent of the average IT budget.
Growth shows no signs of slowing
The financial burden will continue to increase, 451 Research predicted, with security management costs set to grow nearly twice as fast as overall IT spending in the next five years. Businesses spent $2.4 billion on security in 2016, a figure that is set to increase at a compound annual growth rate (CAGR) of 8.9 percent to $3.5 billion in 2021.
Another study also predicted that the SECaaS model is set for rapid growth. A Persistence Market Research report said the global market will enjoy a 17.1 percent CAGR through 2026, ChannelLife reported. The use of security-as-a-service solutions is already common in the telecommunications and IT industries, while the retail, consumer goods, healthcare, banking, financial services and insurance industries are poised for rapid growth.