The cloud security services market grew 13.5 percent in 2014 to $7.2 billion worldwide, up from $6.3 billion the previous year, according to technology market research firm Infonetics Research. Infonetics said that Cloud-based offerings made up 46 percent of security service revenue in 2014, with CPE-based services contributing 54 percent. By 2018, Infonetics expects cloud security services to surpass CPE-based security services.
Overall, the managed security service segment totaled $15.8 billion worldwide in 2014, rising 10 percent from 2013. According to Infonetics, the largest contributor to cloud-based security service revenue is content security, followed by managed firewall services, other security services, distributed denial of service (DDoS) mitigation and intrusion detection/prevention systems.
Jeff Wilson, Research Director, Cybersecurity Technology, Infonetics Research
Our long-term outlook for the already very large cloud and CPE managed security services market, especially for cloud services, is quite strong as providers begin to leverage their software-defined networking (SDN) and network functions virtualization (NFV) rollouts to really scale the delivery of managed security services. Providers are leaning heavily on SDN and the promise of NFV, and this will help them deliver a wide range of new security services that leverage virtual appliances for protecting applications, data and infrastructure in their own clouds, and delivering new services to customers.
