BY STAFF REPORT
Managed security services market in Latin America is likely to double its revenue from $331.9 million in 2012 to $646.2 million in 2017, says analyst firm Frost and Sullivan.
An increasing rate of cyber attacks and the publicity it has received is making enterprises in the region to be aware of their vulnerability and the need to better handle security requirements.
Given its assessment, this growing realization among enterprises will be the key driver of growth in managed security services (MSS) market in the region.
“Web applications and mobile devices have become the vehicle of choice for attacks, making it easier for security to be compromised and compelling companies to outsource their security services to efficient third party service providers,” said Frost & Sullivan Research Analyst Bruno Tasco.
Employees using their personally-owned devices for work-related activities have made enterprises vulnerable to cyber attacks, representing added opportunities for security service providers.
The analyst firm says information security regulations by Latin American governments will also force end users to fortify their security capabilities.
“The region’s healthy economic growth has attracted players from other regions to expand their businesses in Latin America, further enhancing the scope of the MSS market,” stated the research firm.
What is hampering growth, however, is the perception that managed security solutions do not offer significant returns. “The difficulty in calculating the potential losses of a foiled attack means that clients see the explicit costs and miss the implicit benefits of MSS,” said analyst firm.
This affects firms’ decision to hire or continue security services and often companies, which have not yet been victims of attacks, fail to recognize the need for security services.
“This reactive demand has led MSS providers to focus on the chief targets of cyber attacks, especially the application, mobile, and cloud segments,” concluded Tasco. “Nevertheless, basic services such as firewall and VPN will remain the most popular in the region, and penetration testing and assessment services will grow the fastest.”