Infonetics Research reportedly announced that its latest market research analysis titled, ‘Security and Encrypted VPN Services: CPE, Cloud, and SaaS’ (News - Alert) in now available, and its most significant finding was that the growing interest in Software as a Service (SaaS) and cloud computing is in turn driving the growth of the IT related security market segment.

“There's a dip in growth in 2009, but strong interest in SaaS and broad availability of SaaS offerings from a wide variety of players - from network providers and security specialist service providers to large content providers and product manufacturers - drive continued growth in the market," said Jeff Wilson, Principal Analyst for Network Security, Security and Encrypted Virtual Private Network (VPN) Services department for Infonetics Research (News - Alert). “SaaS is definitely the future of managed network security.”

The primary reason why customers the world over are turning to SaaS is the significant cost benefit because it gives them the freedom to use and pay for only select components of their choice from software suites, and the flexibility to add other requisites as and when the need arises. Prior to this innovative customer driven request for ‘a use and pay, when required only’ approach, entire solutions had to be bought and installed at a significantly higher one-time cost.

IT support resources such as staff, network equipment, installation fees and annual maintenance contracts are kept to a minimum, if not eliminated. With lesser pre-installed information to wade through, systems become more agile and corrective measures require lesser bandwidth, are more focussed and can be done remotely.

The Infonetics report claims that managed security services are projected to drive revenues up by 78 percent in 2013 when compared with 2008, and during this period, will grow at a Compound Annual Growth Rate (CAGR) of 46 percent, which is the highest CAGR in all of the market research company’s security services reports by a significant margin.

Research analysts at the company say that the biggest market for managed security services is North America, the Europe Middle East and Africa (EMEA) have recently shown growing trends of adopting this route, and Asia Pacific and Central America and Latin America (CALA) represent strong future growth potential as a lot of first time interest appears to be brewing in those regions.

"Despite the global economic meltdown, the security services market is strong and growing, driven by increasing global demand from organizations of all sizes due to the proliferation of threats of all types, the complexity of current security solutions, and the desire of many service providers to add revenue and improve margins," said Wilson.

Within the managed security potpourri of services offered, claim official sources, content security services make up most of the SaaS opportunity, and even though large organizations procure most of the services across the globe, Small to Medium Businesses (SMB’s) are showing keen interest in such solutions.

On the negative side, say officials, the managed encrypted VPN services market declined marginally in 2008 over 2007 to register more than $ 20 billion because Multi Protocol Label Switching (MPLS) VPN services appeared to divert revenue streams away from encrypted services due to heightened prioritization, and selective and cautious procurement because the economy is so bad.

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