Over the last few years, enterprise adoption of cloud computing has grown incrementally. However, security remains the most renowned issue with the adoption of cloud computing for companies. As enterprises are increasingly investing into cloud infrastructure, technology vendors are finding new market opportunity of “cloud security” within the cloud computing market. Could security is the next evolution in the information technology industry. This technology steadily changing the way we secure and use the web content. Though the market is currently small, it is expected to grow exponentially over the next five years. Could security software offers benefit such as encryption, vulnerability scanning, endpoint monitoring, application and messaging security, intrusion detection and identity and access management (IAM).
With growing adoption of cloud computing, Software as a Service (SaaS) and Platform as a Service (PaaS) will be largest hit with security threats and hence will be leading segment for security system adoption. The adoption of could computing is expected to grow further with rising awareness about its cost saving benefits and potential agility among individuals and organizations.
Improved adoption & growing mobilization of enterprises will attract higher investment into mobile cloud security space. With growing competition companies across different industrial sectors are spreading their operations in the potential markets across the world due to which employees of these companies are usually on business tours. This requires companies to provide access to database and emails through cloud while their employees are on the move. Thus, growing mobility of employees is expected to be another major driving factor for the growth of this market. Public clouds, being more prone to security threats will contribute higher towards the cloud security market revenue. The global cloud security market is witnessing strong growth in banking, E-commerce, government, insurance and healthcare segments due to increasing data and flexibility needs among these sectors. Increasing use of cloud services in non-traditional sectors such as online music stores and online gaming due to their advantages such as ease of use, ease of sharing and unlimited storage space.
At present, cloud security software solutions accounted for the smallest share in the global security software market. However, this market is expected to see a strong growth across all geographical regions with its growing adoption on both individual and organizational level. North America represents the largest regional market for cloud security solutions followed by Europe and Asia Pacific. The U.S. is the individual largest market for cloud security solutions. Asia Pacific is expected to witness the fastest growth in the global market due to rising outsourcing to India, China and other major countries in the region. Large enterprises having annual revenue more than US$ 100 million and widespread operations across the globe represent the largest end use segment for cloud security software solutions followed by government sector. Despite of supporting growth factors market this market is expected to face challenges from lack of awareness about cloud security particularly in developing cloud markets and among individual consumers, lack of could security standards and difficulties in providing consistence network connection. In addition, majority of cloud service providers do not offer security solutions along with their cloud services and believe that security is end user’s responsibility. This attitude of cloud service providers is limiting the adoption of this market.
A number of renowned security vendors such as Symantec and McAfee have already ventured in to the cloud security market with recent inclusion to the list being Sourcefire with its FireAMP security solutions. Other major vendors include Trend Micro, HiTrust, CA Technologies, Symplified, High Cloud Security, Zscaler, WhiteHat, Panda, SecureAuth, ChiperCloud and Bromium. The global could security market is niche and small and top five players accounted for about 2/3 of market share.
This industry is highly competitive and large size security service providers entering in this market are acquiring small players to gain technology advancement. In addition, growing partnerships among cloud service providers and security solutions providers is expected to spur this market through the forecast period 2014 – 2020.