APAC secure content management market to double

New Frost & Sullivan study shows region's secure content market, driven primarily by enterprise's need to control costs, will double to 15.4 percent and hit revenues of US$522 million by end-2010.
Written by Liau Yun Qing, Contributor

The secure content management market (SCM) in the Asia-Pacific region is expected to double by end-2010 as more companies look to employ such services to control operational costs, according to Frost & Sullivan.

A new study by the research firm shows that the region's SCM market, which includes Japan, is expected to grow by 15.4 percent in 2010, more than double the growth rate of 6.3 percent in 2009. Revenues for this sector are also forecasted to rise to US$522 million by the end of the year, the study revealed.

Edison Yu, industry manager at Frost & Sullivan, pointed out in the report that the growth of SCM will be driven primarily by companies' continued migration to such services in order to control costs.

Riding on such momentum, the study also showed that the Asia-Pacific region's SCM market, which covers 14 countries including Japan, will grow at a CAGR (compound annual growth rate) of 18.4 percent from the time period of 2009 to 2016. The industry will also see revenues of just under US$1.5 billion by end-2016, Frost & Sullivan stated.

Yu went on to point out that e-mail filtering, in particular, has proven to be a suitable "poster-technology" for the SCM market. This is because diverting e-mail messages to a third-party vendor for security scans is generally perceived as having no direct tangible effect on end-users' experiences, he added.

Such services' ability to offer "spam-free" bandwidth is attractive for enterprises from an operational, productivity and cost perspective, he noted.

E-mail filtering services raked in US$265.1 million, or about 59 percent of the total SCM market, in 2009, the study showed. This segment is now expected to grow at a CAGR of 15.9 percent until 2016.

Similarly, Web security services will see a CAGR of 21.5 percent within the same time frame, the report stated. The need for such services is heightened with the growing adoption of Web technologies in the last two years, said Yu.

"The rapid emergence of Web 2.0 technologies and the importance of the Web sphere in driving business processes saw companies placing greater emphasis on securing their Web fronts beyond just the traditional URL filtering," he added.

For security vendors, the ability to offer extensive portfolios of solutions across both e-mail and Web security and options for converged platforms will be key in enhancing their competitiveness, Yu said.

Such comprehensive security suites will cater to enterprises looking for in-depth defense that comes with simpler management and lower costs, he added.

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