Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Risk

9/23/2008
09:23 PM
George V. Hulme
George V. Hulme
Commentary
50%
50%

North American Companies Embracing Security Outsourcing

The U.S. managed security services market is booming, and set to double in size in the next few years? MSSPs have been around, in one iteration or another, for as long as I can remember. Why is the market set to rock now?

The U.S. managed security services market is booming, and set to double in size in the next few years? MSSPs have been around, in one iteration or another, for as long as I can remember. Why is the market set to rock now?According to a report released today by the research firm IDC, the U.S. managed security services market hit $1.3 billion in last year, growing at a clip of about 20 percent from 2006. IDC forecast that growth to nearly sustain itself through 2012 when the managed security services market should more than double to $2.8 billion.

Here's the reasoning behind the growth, from IDC's security services research analyst, Irida Xheneti:

"Among the many dynamics shaping the U.S. managed security services market today, growing security complexity, the evolving pace of today's technology, and stringent compliance mandates are driving demand and spending for managed security services."

While I'm sure those all play a role in driving security demand, I think the wind behind the sails of MSSPs today is cost-cutting. The last time MSSPs were making a significant splash was in 2001 - when the tech bubble had just tanked. Back then, research firm Yankee Group forecasted that companies would spend about $1.7 billion in security services by 2005, up from just $140 million in 1999.

Considering that IDC pegged managed security services at $1.3 billion in 2007, Yankee Group was only slightly off the mark in their prediction. And the mantra in 2001 was to slash costs, and build operational efficiencies.

Here's a quote from a feature story I wrote about MSSPs way back in 2001. It's from a security manager working at a major hospital on why companies outsource security:

The reason is economics. "When decisions to outsource security are made, it's generally done by the CFO and is based on cost savings," says Bruce Peck, information security manager at St. Vincent Hospital & Health Services, a network of eight hospitals in Indianapolis.

I thought Bruce Peck was correct seven years ago, and I think he's still correct today. When you hear that companies are outsourcing security to maintain a competitive edge, or to keep up with complex threats, or regulatory compliance concerns - they really mean they're trying to cut costs. And the further the economy tanks, the greater the benefit to managed security providers.

 

Recommended Reading:

Comment  | 
Print  | 
More Insights
Comments
Oldest First  |  Newest First  |  Threaded View
COVID-19: Latest Security News & Commentary
Dark Reading Staff 7/9/2020
Introducing 'Secure Access Service Edge'
Rik Turner, Principal Analyst, Infrastructure Solutions, Omdia,  7/3/2020
Russian Cyber Gang 'Cosmic Lynx' Focuses on Email Fraud
Kelly Sheridan, Staff Editor, Dark Reading,  7/7/2020
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
Special Report: Computing's New Normal, a Dark Reading Perspective
This special report examines how IT security organizations have adapted to the "new normal" of computing and what the long-term effects will be. Read it and get a unique set of perspectives on issues ranging from new threats & vulnerabilities as a result of remote working to how enterprise security strategy will be affected long term.
Flash Poll
The Threat from the Internetand What Your Organization Can Do About It
The Threat from the Internetand What Your Organization Can Do About It
This report describes some of the latest attacks and threats emanating from the Internet, as well as advice and tips on how your organization can mitigate those threats before they affect your business. Download it today!
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-15001
PUBLISHED: 2020-07-09
An information leak was discovered on Yubico YubiKey 5 NFC devices 5.0.0 to 5.2.6 and 5.3.0 to 5.3.1. The OTP application allows a user to set optional access codes on OTP slots. This access code is intended to prevent unauthorized changes to OTP configurations. The access code is not checked when u...
CVE-2020-15092
PUBLISHED: 2020-07-09
In TimelineJS before version 3.7.0, some user data renders as HTML. An attacker could implement an XSS exploit with maliciously crafted content in a number of data fields. This risk is present whether the source data for the timeline is stored on Google Sheets or in a JSON configuration file. Most T...
CVE-2020-15093
PUBLISHED: 2020-07-09
The tough library (Rust/crates.io) prior to version 0.7.1 does not properly verify the threshold of cryptographic signatures. It allows an attacker to duplicate a valid signature in order to circumvent TUF requiring a minimum threshold of unique signatures before the metadata is considered valid. A ...
CVE-2020-15299
PUBLISHED: 2020-07-09
A reflected Cross-Site Scripting (XSS) Vulnerability in the KingComposer plugin through 2.9.4 for WordPress allows remote attackers to trick a victim into submitting an install_online_preset AJAX request containing base64-encoded JavaScript (in the kc-online-preset-data POST parameter) that is execu...
CVE-2020-4173
PUBLISHED: 2020-07-09
IBM Guardium Activity Insights 10.6 and 11.0 does not set the secure attribute on authorization tokens or session cookies. Attackers may be able to get the cookie values by sending a http:// link to a user or by planting this link in a site the user goes to. The cookie will be sent to the insecure l...