World Managed Security Services Markets
Research Overview
Regulatory Pressures are Driving New Customers towards Outsourcing
Regulatory pressures such as the Health Insurance Portability and
Accountability Act (HIPAA), Gramm-Leach-Bliley Financial Services Modernization
Act, Homeland Security, Sarbanes-Oxley Act is driving many businesses to
outsource their security needs to managed security service providers (MSSPs).
Customers are convinced that contracting the services of security professionals
to monitor and maintain their equipment satisfies the mandate of 'due diligence'
put forth by the various legislations. The auditing and reporting capabilities
of MSSPs are causing many customers to utilize the information found in their
web-based reports to meet the requirements of legislation and audit teams and
avoid the penalties for non-compliance.
This Frost & Sullivan research examines the key drivers and challenges in
the MSSP market. The analysis focuses exclusively on remote monitoring and
management of customer premise equipment (CPE) security devices - Noting the
impact of various verticals and technologies and the entrance of telecom
carriers into the MSSP market.
Growing MSSP Competence Critical to Gaining Customer Confidence
Since the marketfs early years, MSSPs have had to repeatedly prove their
competence to clients that doubted the financial stability of start-up
companies. "With the market's evolution and the increase in MSSP competence
and capabilities, several satisfied customers have validated the MSSP model ?
Driving an increasing number of administrators to opt for outsourced security
alternatives," says Jason Wright, Program Leader of Security Technologies.
For tasks such as security ? Outsourcing offers a host of advantages over
in-house solutions. These include cost and time saving, and, most importantly,
the freedom to focus efforts on core competencies and other IT initiatives.
Since the network is more frequently attacked during non-business hours,
hiring around-the-clock security staff adds to the cost of an in-house solution.
MSSPs are earning the respect and trust of clients through their undeniable
value proposition of leveraging the expertise of seasoned analysts to provide
24X7X365 security monitoring and management.
Better Positioning Permits MSSPs to Maximize Market Growth
Initially characterized by numerous participants providing overlapping
services, the MSSP market has slowly evolved to expose only those providers
capable of providing excellent value-added services to their clients. MSSP
market shakeout has resulted in fewer competitors that are finding their
respective focal points and capitalizing on market positioning. "Moreover,
with high customer satisfaction and retention, MSSPs can increase revenues from
existing customers by positioning themselves as solutions partners instead of
service providers," explains Wright. These tighter relationships facilitate
growth from within the MSSPs' existing customer base as their service
capabilities and the types and number of devices they monitor increases.
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