IT Security Market Overview

September 2012
Prepared by Lee Mashburn
Marketing & Product Management Executive

Check out my personal

website. Recently
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Lee Mashburn and Elijah

The IT Security Market and Competitive Landscape

This PowerPoint presentation overviews the IT

Security market. It has been developed as a
result of over 100 hours of research and analysis.
It provides a snapshot of the various IT Security
sub-markets; size, projected growth, and
competitive landscape.
If you wish to see more detail, contact me at
lee.mashburn@aol.com

IT Market Overview 2012 Estimated

Computing Hardware; 11%
Software; 7%

$3.8 trillion market, $1.6 trillion excluding Telecom

6% annual growth rate expected excluding Telecom

Telecom Services; 46%

IT security represents only 1.5% of total

IT security market expected to grow 12% through 2016

IT Services; 23%

Cloud IT security will grow from 17% to 24% by 2016

Telecom Equipment; 13%

Computing Hardware
Software
IT Services
Telecom Equipment
Telecom Services
All IT

HW, SW, Svcs

IT Security
Percent of Total

Copyright, Cogniti, Inc.,

CY
2010
$375
$244
$793
$412
$1,603
$3,427

$1,412
$19
1.3%

CY
2011
$404
$267
$845
$442
$1,704
$3,662

$1,516
$22
1.5%

CY
2012E
$421
$280
$856
$473
$1,721
$3,751

$1,557
$24
1.5%

CY
2013E
$457
$299
$886
$508
$1,767
$3,917

$1,642

CY
2014E
$496
$319
$920
$538
$1,816
$4,089

$1,735

CY
2015E
$553
$339
$956
$567
$1,861
$4,276

$1,848

CY
2016E
$592
$362
$995
$593
$1,898
$4,440

$1,949

CAGR
7.9%
6.3%
3.3%
6.0%
2.2%
3.9%

12.0%

3
3

The 2012 Top Priorities of the CIO

CIOs are increasingly in step with CEO top

priorities
Top CIO priorities:

Must derive insight, competitive advantage,

and tangible business benefit from the huge
volumes of data available across an
enterprise how?

Business intelligence and analytics

Mobility
Virtualization
Cloud computing
Business process management

Master data management, customer analytics,

data warehousing, and visual information
dashboards

Must deliver information technology securely

and reliably
Must help simplify operations, business
processes, products, and services
Leverage cloud computing and outsourcing
to reallocate internal resources from routine
system maintenance toward more valuable

IT Security Sub-Markets
$25,000

$20,000

Network access control

Identity & Access Management
Mobile device management
Content aware data loss
prevention
Secure web gateway
SIEM
Unified threat management
Secure email gateways
Endpoint protection platforms
MSSP
Enterprise network firewalls

$15,000

Sales in USD (millions)

$10,000

$5,000

$0
FY 2009

FY 2010

FY 2011

FY 2012E

5
5

IT Security Most Google-Searched Terms, 2012

Managed security services
Unified threat management
Data loss prevention
Database security
Email security
SSL VPN
Endpoint security
Endpoint protection
Computer forensics
Identity management
Intrusion detection system
Fraud prevention
0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

No. of Google Search URLs

Mobile Device
Management
IAM

DLP

UTM

MSSP

SIEM

Secure Web
Gateway

Enterprise
Network
Firewalls

NAC

Endpoint
Protection
Platforms

Key:
Size of circle reflects relative 2012 market size
Vertical placement reflects relative growth rate

Secure Email
Gateways

Network, Data, &

Endpoint Security and
Unified Threat
Management

MSSP

MSSP

Market Definition
Enterprises that optimize their use of managed security service
providers
(MSSPs) can free up internal staff time for dealing with more
businesscritical security functions if they select. Gartner sees continued
strong, if
not spectacular, growth for managed security services in North
America.
An MSS portfolio can include unified threat management, data loss
prevention, security information and event management, log
management,
vulnerability scanning, and email security. Web-based portals
typically serve
as the primary means of communication about monitoring and
management
services performed for customers.

Sales ($US million)

Marketcompliance
Size, Worldwide
Drivers: evolving
reporting requirementsMarket
(PCI andShare
$8,000
FISMA), IT staffing and budget constraints, increased availability
and adoption of IT22%
as-a-Service,
$6,000
expansion of Internet connection endpoints, the SMB
market, applications to prevent data loss, and SaaS for remotely78%
monitored
$4,000 CPE.

Gartner Magic Quadrant, Nov 11

Verizon AT&T

Dell SecureWorks
Symantec

Execution

Managed Security Service Provider,

IBM

Bell Canada

CSC
SAIC
Integralis
Solutionary
HP
CompuCom
Savvis
HCL
Wipro
Trustwave
Perimeter

North America Market

Vision

Market Growth 3-Yr CAGR

IT Security

MSSP

$2,000
MSSP Market
$0
FY 2009

FY 2010

FY 2011 FY 2012E

IT Security Market

0%

5%

10%

15%

20%

Content-Aware Data Loss Prevention

(DLP)
Gartner Magic Quadrant, Aug 11

Market Definition

Symantec
McAfee

Execution

Content-aware DLP tools enable the dynamic application of policy

based on the classification of content determined at the time of an
operation. These technologies and inspection techniques are used to
classify information content contained within an object such as a file,
email, packet, application, or data store - while at rest (in storage), in use
during an operation), or in transit (across a network); and the ability
o dynamically apply a policy such as log, report, classify, tag, and
encrypt and/or apply enterprise data rights management protections.
They can execute responses ranging from simple notification to active
blocking based on policy settings.

DLP technologies help organizations develop, educate, and enforce

better business practices concerning the handling and transmission
of sensitive data. Used to its full capability, DLP is a nontransparent
control, which means it is intentionally visible to an end user with a
primary value proposition of changing user behavior.

Sales ($US million)

Market Size

CA
Trustwave

RSA
Websense
Verdasys

Code Green
Fidelis

Trend Micro
Safend

GTB Technologies

Pallisade

Vision

Market Share
Market Growth 3-Yr CAGR

$600
$500

2%

$400

IT Security

12%

$300
98%

$200

DLP

$100

22%

DLP Market

$0
FY 2009

FY 2010

FY 2011

FY 2012E

IT Security Market

10
10

Security Information & Event Management

(SIEM)
Gartner Magic Quadrant, May 12

Market Definition

Execution

SIEM technology aggregates the event data produced by security

devices, network devices, systems, and applications. The primary data
source is log data but SIEM technology can also process other forms of
data. Event data is combined with contextual information about users,
data, and assets. The data is normalized so that events from disparate
sources can be correlated and analyzed for specific purposes such as
network security event monitoring, user activity monitoring, or compliance
reporting. This technology combines real-time security monitoring,
historical analysis, and other support for incident investigation and
compliance reporting. Deployment and support simplicity is an important
attribute for all use cases because of the resource constraints of most IT
security organizations.

HP ArcSight

RSA (EMC)
Splunk
Symantec
LogLogic

Sales ($US million)

Vision

Market Share

Market Size

$1,400

NetIQ
LogRhythm
SolarWinds
Trustwave
elQnetworks

Sensage

Features: behavior profiling, anomaly detection, threat intelligence, and

advanced analytics to support the early detection of targeted attacks.
Drivers include real-time security monitoring and compliance reporting.

IBM Q1 Labs
McAfee Nitro
Security

Market Growth 3-Yr CAGR

$1,200

5%

$1,000
$800

95%

$600
$400
$200

SIEM Market
IT Security Market

$0
FY 2009

FY 2010

FY 2011

FY 2012E

IT Security

SIEM

12%

14%

11
11

Database
Database Activity
Activity
Monitoring
Monitoring

Behavior
Behavior
Profiling
Profiling

SIEM

Application
Application
Monitoring
Monitoring

Enterprise
Enterprise
Resource
Resource
Management
Management

File
File Integrity
Integrity
Monitoring
Monitoring

Data
Data Loss
Loss
Prevention
Prevention

Incident
Incident &
& Access
Access
Management
Management

Threat
Threat
Intelligence
Intelligence

Security Information & Event Management

(SIEM)

Ad hoc query

Analytics

Reporting

Log management

12

Cloud is the Future

oud computing is a style of computing where scalable and elastic IT-related

pabilities are provided as a service to customers using Internet technologies

Benefits

Risks

Increased agility

Security

Reduced cost

Transparency

Less complexity

Assurance

Better focus on the

priorities

Lock-in

Enhanced
collaboration

Integration

Cloud Computing Hype Cycle

By Gartner

Financial sustainability

Easier to innovate

13