SMB Focus on Network Security Will Lead to Two Fold Increase

Small and medium-sized businesses' (SMBs) spending on security technology will increase nearly twice as fast as that for the security technology market sector overall, according to a report from IDC special report. SMBs spend more than $5.6 billion on security technology in 2015, IDC forecasts, almost double the 5%-6% constant annual growth rate (CAGR) for security products and solutions overall.
SMBs are viewing investments in security technology as a means of opening up, and securing, new opportunities to leverage new technology investments, IDC reports. Empowering growing numbers of mobile workers and growing use of Cloud services has made investing in security products, services and solutions a priority for SMBs, according to IDC.
"SMBs are more focused on security as a way to gain access to more capabilities, but less focused on security as a cost to be reduced once minimum standards are met," commented Ray Boggs, vice president for Small and Medium Business Markets research at IDC. A "major expansion in key capabilities-- especially online ones" is a "major driver of new SMB security investment," added vice president of Security Products Charles Kolodgy.

Key findings from IDC's report series include:

  • The six key security product areas - endpoint, messaging, network, Web, identity and access management (IAM), and security and vulnerability management (SVM) - will all show strong growth throughout the forecast period.
  • The changing ways that security capabilities are implemented will also represent opportunities for technology suppliers. SMB spending on software-as-a-service and security appliances are both forecast to grow at double digit rates in the coming years.
  • Both small and medium businesses identify security as a key IT investment priority. About 19% of small firms (under 100 employees) cite improving security and security management as key IT spending priorities. This percentage almost doubles to 36% among medium-sized firms (100-999 employees).
  • IDC identified six key elements for success in the SMB security market: an effective Web site, education, dedicated products, appliances, SaaS, and channel support. But while many companies do well in three or four categories, no single company is ahead of the pack in all six.

A recent InformationWeek report found that the advent of "bring your own device" policies among businesses is driving growth in IT security investments. Nearly 90% of business technology professionals surveyed allow, or are moving to allow the use of personally-owned devices inside the organization.
"To meet the needs of SMB customers, vendors need to understand three components," Boggs continued. "These are: 1.) understanding the big picture SMB opportunity: 2.) understanding the product needs of SMB prospects: and 3.) understanding the SMB purchase process."

Written by Michael Standley at 00:00
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