Network security is outsourcing's golden goose

Butler Group reports finds that companies want managed services to secure their networks

The biggest demand for managed services comes from companies looking to secure their network infrastructure, according to analysts, who predict the consolidation of the currently fragmented market is inevitable in the next couple of years.

A report published today by Butler Group estimates that the market for managed security and privacy services, which along with business continuity services represent a key piece of next generation network roll out, is set to grow at roughly 15% per annum through 2010.

“The market for firewalls, VPNs and that sort of thing is already well established; anybody that was going to buy them already has,” Maxine Holt, senior research analyst at Butler Group and co-author of the 'Managed Services' report told IT Week.

“But demand for managed unified threat management (UTM), security and privacy is set to grow as people look to experts to help with federated identity management and network access control (NAC).”

The complex and fast moving area of voice/data convergence os another that will force IT departments to look for outside help in delivering converged communications services, reckons Holt.

The increased integration of email, security and storage is likely to cause significant market upheaval over the next 18 months however. Consolidation is inevitable in a fragmented managed services market that currently sees around 1,000 providers worldwide offering specific services.

Merging network infrastructure, security and storage services into broader managed solutions may make it easier for companies to identify a viable return on investment, but old concerns about putting all the eggs in one basket are bound to resurface.

“It is different from one organisation to another, but there still has to be a trusted relationship with the service provider,” added Holt.

“Lots of organisations do not want their data stored off site, for example, and even if you believe in the managed services model, it can be difficult to put a business case together, but I do think that is changing.”