BYOD threats fuel security software boom

The amount of money spent on security software grew from $17.7bn in 2011 to nearly $20bn in 2012 as businesses attempted to protect themselves against new cyber threats.

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Security-as-a-service captures the eyes of the enterprise

Businesses are increasingly looking to put their security defences in the cloud, according to IT analyst firm Gartner.

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The global security software market grew 7.2 percent in 2012 as new threats and working practices forced businesses to spend more on security. 

According to a new report released by IT analyst firm Gartner, worldwide security software revenues reached $19.2bn in 2012, a 7.9 percent increase on 2011 revenues of $17.7bn. 

Gartner said that the amount of money companies spent on security software corresponded with the evolution of new threats and working practices. For example, the rise of BYOD and remote working was forcing organisations to introduce new safeguard off-premise applications for an increasing number of devices. 

"The 2012 security market saw a continuation of increasing demand for consumer and enterprise security tools as McAfee's high growth of 37 percent boosted the overall market's growth rebound in 2012," Gartner research director Ruggero Contu said on Thursday.

Despite growth of only 2.6 percent, Symantec remained the security software market leader in 2012 with a 19.9 percent market share and revenues of $37.75bn.

Meanwhile, McAfee grew its revenues by 37 percent in 2012 to $1.7bn. This was driven by a combination of organic growth, acquisitions and the indirect impact of a 2011 revenue write-down following Intel's acquisition of McAfee, according to Gartner.

Company 2012 Revenue 2012 Market Share (%) 2011 Revenue
Symantec $3,747.1m 19.6 $3,652.0m
McAfee $1,680.0m 8.8 $1,226.0m
Trend Micro $1,172.0m 6.1 $1,205.1m
IBM $953.6m 5.0 $931.3m
EMC $717.6m 3.7 $716.1m
Others $10,865m 56.8 $10,008.7m
Total $19.135.5m 100.0 $17,739.2m

"Security continues to be a top priority across all technology categories in the SMB market. The rise of midmarket demand presents a new challenge for participants in the security space, as SMB requirements are different from those of larger enterprises," said Contu.

"Security buyers from SMBs are increasingly considering security-as-a-service as an alternative for deploying security technologies, particularly for areas such as email and web security, which is leading to more market consolidation and more competitive pricing as established players acquire pure-play cloud-based specialists across the security landscape."

Indeed, Gartner analysts predicted in April that the security-as-a-service market would grow to be worth $4.2bn by 2016. 

Consumer spending on security software still exceeds enterprise spending. However, the amount spent on enterprise security software grew by 9.2 percent in 2012 while the amount spent on consumer security software only increased by 6.7 percent. 

  2011 2012 Growth (%) in 2012
Consumer Security Software $4,583.50m $4,891.90m 6.7
Endpoint Protection Platform (Enterprise) $2,911.00m $3,178.50m 9.2
User Provisioning $1,266.60m $1,397.50m 10.3
Secure Web Gateway $1,151.60m $1,221.70m 6.1
Secure Email Gateway $984.1m $1,000.20m 1.6
SIEM $765.5m $976.4m 27.5
Appliance — Secure Web Gateway $746.5m $811.0m 8.6
Appliance — Secure Email Gateway $653.5m $677.5m 3.7
Web Access Management $591.5m $633.9m 7.2
DLP $458.2m $572.9m 25.1
Appliance — SIEM $343.9m $384.8m 11.9
Other Security Software $3,283.40m $3,389.20m 3.2
Total $17,739.20m $19,135.50m 7.9

Western Europe "remained the laggard" due to economic uncertainties and fragility and also due to the impact of dollar-to-euro conversion, added Contu.