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Strong outlook for cloud security services

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Technology market research firm Infonetics Research reports that the cloud security services market grew 13,5% in 2014 to $7,2-billion worldwide, up from $6,3-billion the previous year.“Our long-term outlook for the already very large cloud and CPE managed security services market, especially for cloud services, is quite strong as providers begin to leverage their software-defined networking (SDN) and network functions virtualisation (NFV) rollouts to really scale the delivery of managed security services,” says Jeff Wilson, research director for cybersecurity technology at Infonetics Research, now part of IHS.

“Providers are leaning heavily on SDN and the promise of NFV, and this will help them deliver a wide range of new security services that leverage virtual appliances for protecting applications, data and infrastructure in their own clouds, and delivering new services to customers,” Wilson says.

Infonetics’ 2015 “Cloud and CPE Managed Security Services: report analyses and forecasts the market for cloud- and customer premises equipment (CPE)-based security services delivered by service providers to small, medium and large businesses.

Other highlights include:
* Managed security service revenue totalled $15,8-billion worldwide in 2014, rising 10% from 2013;
* Cloud-based offerings made up 46% of security service revenue in 2014, with CPE-based services contributing 54%;
* By 2018, Infonetics/IHS expects cloud security services to surpass CPE-based security services;
* The largest contributor to cloud-based security service revenue is content security, followed by managed firewall services, other security services, distributed denial of service (DDoS) mitigation and intrusion detection/prevention systems.