Security software revenue in Europe, the Middle East and Africa (EMEA) is expected to total €2,4-billion in 2007, according to Gartner.
The market will grow at a compound annual rate (CAGR) of 9,6% from 2006 through 2011 and reach €3,5-billion by 2011. Eastern Europe and the Middle East & Africa region are predicted to reach 13,6% and 14,7% average annual growth respectively during the same period.
“The antivirus market is predicted to remain the largest revenue market in EMEA, accounting for more than 50% of the total security software revenue market in 2007," says Ruggero Contu, principal research analyst at Gartner.
"The consumer antivirus segment will see a much faster year-on-year growth than the enterprise antivirus segment, bolstering growth in the overall security software market."
According to Gartner, organisations in EMEA are changing their approach when purchasing security software. Purchases are more focused on the fulfilment of policy and have a more holistic view of the organisation’s security issue. They are also more sophisticated in the way they choose security products and technical evaluations are now common practice.
In addition, organisations are looking for operational efficiency and need better functionality to consolidate their system management. Because of this, mergers and acquisitions among security vendors will persist.
“Traditionally, the security software market has been dominated by best-of-needs vendors, but we are starting to see a gradual consolidation around fewer players. This trend is also mirrored in customers’ preference to deal with two or more vendors that already trust each other’s products and practices,” Contu adds.
Some of the largest software infrastructure vendors, particularly those leading the IT operation management market (such as IBM, CA, BMC Software and HP) have been expanding their product offerings into the security area, with identity and access management product offerings in place, for example.
In addition, broader-scope vendors, such as Microsoft, Oracle and Novell, have strengthened their security market presence as a result of acquisitions.
Consolidation is also occurring across separate software segments. For example, the merger of Veritas with Symantec demonstrates the increasing integration between operations and security software providers, with Symantec expanding from security as its traditional core business into IT operations.
Providers of network security software and hardware products are also consolidating their offerings with network security platforms, combining what were previously point products (tools designed for specific functions on particular parts of the infrastructure) into single products.
“Security is becoming more complex and difficult for a single vendor to handle. Customers require products that integrate with their security architecture rather than disconnected point solutions and it is essential for large and small players to partner with best-of-needs vendors. Only those vendors offering good integrated production, based on an already established and trusted technological partnership, will be best placed for success,” Contu adds.