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Asia-Pacific Managed Security Services to Top US$4.0 Billion in 2015 Finds Frost & Sullivan - Frost & Sullivan expects rising SMB uptake
Asia-Pacific Managed Security Services to Top US$4.0 Billion in 2015 Finds Frost & Sullivan


NewswireToday - /newswire/ - Singapore, Singapore, 2010/05/06 - Frost & Sullivan expects rising SMB uptake.

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The Asia-Pacific managed security services (MSS) market is forecasted to exceed US$4 billion by end-2015, with revenues rising at a compounded growth rate of 19.7 percent annually for the next five years.

Frost & Sullivan industry analyst Cathy Huang expects growing adoption for MSS by small and medium businesses (SMBs).

"As network security risks continue to mount and compliance mandates become more stringent, organisations are forced to implement an ever-increasing number of security technologies," she says. "The managed model is a compelling option for SMBs who can ill-afford large capital expenditure (CAPEX) on security solutions, nor cope with the complexity of an endless onslaught of newer and increasingly targeted threats."

New analysis from Frost & Sullivan (, Asia-Pacific Managed Security Services (MSS) Market, finds that the market - covering 14 Asia-Pac countries, including Japan - grew an estimated 15 percent in 2009, clocking revenues of just over US$1.31 billion.

By the end of 2010, Huang expects revenues to hit close to US$1.55 billion, rising 18.2 percent over last year.

If you are interested in more information about this study, then send an e-mail to Sarah Lourdes at, with your full name, company name, title, telephone number, company e-mail address, company website and country.

"The past two years saw many companies trimming their IT budgets and looking for more cost-effective ways of meeting their IT needs; network security included," Huang explains. "This has fuelled keen interest in shared infrastructure delivery models such as MSS, which allow companies to shift to a more predictable operating expense model."

Large enterprises have historically been the biggest consumers of IT solutions and services, and will likely remain so for a long time. This sector made up the bulk of MSS users in 2009 at approximately 75 percent of the region's revenues.

She believes, however, "As SMBs realise the economic sense in the shared infrastructure model, the attraction quotient would ramp-up significantly, particularly for hosted security services where the equipment is owned and housed at the service providers' premises, and users need only pay for on-demand services.

"Hosted security services would appeal to the SMB sector even more when the service is bundled with other Internet or communications services," Huang continues. She adds that virtualization and products such as unified threat management (UTM) have made hosted services all the more affordable for SMBs.

Larger businesses however are not in favour of hosted services due to the unpopularity of the cloud model for security, which is perceived as loss of control. "They [large enterprises] prefer instead to outsource the remote monitoring and management element of their security needs while hosting the infrastructure in-house," she says.

As a result, monitoring/management services, which include round-the-clock monitoring and log analysis, are the most outsourced functions, accounting for about half of the total MSS revenues in 2009.

The Asia-Pacific Managed Security Services (MSS) Market study is part of the Network Security Growth Partnership Service program, which also includes research in the following markets: network access control, data security, WAN optimization, network security, Web application firewall and secure content management. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

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Asia-Pacific Managed Security Services to Top US$4.0 Billion in 2015 Finds Frost & Sullivan

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Publisher Contact: Sarah Lourdes 
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