Gartner is predicting the cloud-based security services market, which

includes secure email or web gateways, identity and access management

(IAM), remote vulnerability assessment, security information and event

management to hit $4.13 billion by 2017.

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According to its “Market Trends: Cloud-based Security Services Market,

Worldwide, 2014,” Gartner is predicting growth is likely to come because

of the adoption of these cloud-based security services by small-

to-mid-sized business (SMB) in particular. Certain market segments

mentioned in the report will see higher overall sales and year-over-year

growth.
Gartner says the biggest spending happens today in secure email

gateway as a service which will see about $800 million by the end of this

year, climbing to $942 million in 2015 and $1 billion in 2017. But this

segment is expected to have a lower year-over-year level of growth, as

measured from 2010 to 2017, in comparison to the other cloud-based

service segments, such as IAM, for example.

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Today, IAM stands at about $500 million but is expected to see growth to

$860 million in 2015, and then to $1.24 billion in 2017 for a total 28.3%
combined annual growth rate, according to Gartner. Within this area of

authentication as a service, the most growth is expected to come from

what Gartner calls “multifunction identity as a service (IDaaS).”

IDaaS is described as a combination of administration and account

provisioning, authentication and authorization and reporting functions.

Cloud-based IAM can be used to manage software-as-a-service (SaaS)

applications and internal applications as well. Among the vendors

mentioned by Gartner to watch in the IAM area are Atos, CA Technologies,

Exostar, Fischer International, Identropy, Ilantus Technologies, Lighthouse

Security Group, Mycroft, Intel, Okta, OneLogIn, Ping Identity, RSA

Symantec, Symplified, Sena Systems, Simeio Solutions, Verizon and

Wipro.

“Within the IAM space, interest in cloud-based security has been driven

mostly by SMBs’ needs to extend their basic IAM functions and serve

employees who are accessing SaaS and some internal Web-architected

applications,” says the Gartner report, co-authored by analysts Ruggero

Contu and Kelly Kavanagh. “An increasing number of organizations

seem to be adopting cloud-based IAM services to replace IAM

on-premises tools. Larger businesses are often looking to use IAM as a

mixture of legacy- and Web-architected cloud and on premises

applications.”

Rosetta Stone, the company that offers language-learning technologies

for home, business and schools, made the leap into cloud-based IAM

earlier this year. The company transitioned to the Okta cloud-based single

sign-on (SSO) service for its 1,700 employees, says George Hegedus,

director of enterprise services. He says one of the main drivers for using

cloud-based SSO was that Rosetta Stone was moving to cloud-based

application services from Box, Google, Concur and Workday in addition to

its longtime use of Salesforce. “We were lucky to be able to align our

Okta implementation with our cloud applications,” Hegedus says.

Cloud-based SSO is a benefit to employees because they don’t have to

remember a lot of passwords, says Hegedus, and it’s a plus for the IT

department in password management and provisioning. Going with a

cloud-based SSO approach was preferable to trying to build and manage

an on-premises SSO especially because the company was adopting cloud

applications, he noted.
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Cloud-based encryption services are expected to be a “new area of

growth,” according to the Gartner report. But Gartner sees some issues

there, saying, “however, service providers’ relative lack of interest in

cloud-based encryption means it has remained a complex activity,

requiring organizations to initiate complex, build-your-own deployments.

The strongest interest is in encryption products from cloud security

brokers, thanks to their relative ease of deployment and their options for

on-premises encryption management.”

In terms of cloud-based encryption as a service, Gartner says some

vendors to watch in this area include Concealium, CipherCloud,

CloudCrypt, Liason, PerspecSys, Porticor, RSA, SafeNet, Salesforce.com,

Sophos, Symantec, Thales, Trend Micro, Voltage Security and Vormetric.