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Infonetics Research: Cloud/SaaS Market to Touch $17 Billion in 2015

By Rajani Baburajan
TMCnet Contributor

The overall managed security services market, including customer premise equipment (CPE), Software-as-a-Service (SaaS (News - Alert)), and cloud services, is expected to reach $17 billion by 2015, Infonetics Research said in its latest research report.

According to “the Managed Security Services and SaaS with Service Provider Scorecards report” from Infonetics (News - Alert), the size of the SaaS and cloud-based security services is likely to have half of the overall managed security services market opportunity by 2015.

Global SaaS revenue is expected to grow over the next few years, with a compound annual growth rate (CAGR) of 23 percent from 2010 to 2015.

“2010 was a good year for managed security services, which, for the most part, met our expectations for buyer uptake and provider innovations,” said Jeff Wilson, principal analyst for security at Infonetics Research (News - Alert), in a statement.

Revenue grew 12 percent in 2010 and will grow 62 percent over the next five years, driven by cloud-based services and SaaS. Our 2010 forecast was 4 percent high, but there was no decrease in fundamental demand for managed security, just a sluggish global economy, Wilson added.

Managed security services are popular in North America and EMEA. Asia Pacific and Central and Latin America (CALA) are likely to account for a growing portion of the managed security services market in coming years.

The report analyzes the market for SaaS, CPE-, and cloud-based security services managed by service providers for small, medium, and large businesses, including managed firewalls, content security, intrusion detection and prevention solutions (IDS/IPS), and other security services.

Recently, 451 Market Monitor said that it expects the cloud computing marketplace to reach $16.7 billion in revenue by 2013. Large SaaS category, cloud computing will grow from revenue of $8.7bn in 2010 to $16.7bn in 2013, recording a CAGR of 24 percent.

Excluding SaaS revenue, cloud-delivered platform and infrastructure services will grow from $964 million in revenue in 2010 to $3.9 billion 2013, the report said.