Latin America Managed Security Services Markets 2009

Regulatory Pressures Compel Companies to Adopt Managed Security Services

The increasing complexity, diversity, and frequency of cyber attacks, as well as the attendant negative publicity have made companies re-assess their network security solutions. They will get a push in their decision making from the pressure from regulatory agencies and treatises to adopt improved security measures. "The managed security service (MSS) market in Latin America will be well served by the needs to comply with global and local legislation, the rising adoption of mobile devices in many countries, and the massive growth of Internet-based services and applications," say the analysts of this research. Furthermore, in a bid to reduce IT security expenditure and focus on core business, companies are likely to substitute capital expenditure (CAPEX) with soft monthly payments, which is the business model of MSS vendors.

Meanwhile, the emergence of virtual companies and higher use of smart phones, laptops, and personal digital assistants (PDAs) have also made a case for MSS. "The crescent adoption of home office and remote access, as well as the rising adoption of mobile devices by companies' workforce reinforce the need for securing networks," notes the analyst. "To aid their mobile workforce, companies are converging and integrating their networks inside and outside their premises and adopting Internet-based solutions and services." In some cases, implementing security solutions will be easier and cheaper if done by a third-party provider. The scarcity of qualified and experienced security personnel in the market also influences companies' decision to outsource their security needs to MSS providers.

These market drivers notwithstanding, MSS providers will have to strategize for the challenging economic conditions and political instability in many countries in Latin America, as they have limited overall IT investments. Many outsourced security projects in 2009 have been deferred for these reasons. The poor awareness about the current threats and available solutions in the market, as well as the lack of quantifiable ROI tools further inhibit market growth in the region. However, market participants may turn this adverse situation to their advantage by reviewing their prices to make them less prohibitive to some price-sensitive segments. They could also market their services' benefits to educate users and raise awareness about the current threats and their available solutions. "The investment crunch is likely to ease once the economy bounces back and when companies pump funds into projects," observes the analyst. "Their market prospects will also get a boost with city, State, and Federal Governments spending on digital inclusion and infrastructure modernization projects."

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Firewall/ virtual private networks (VPN)
• Intrusion detection and intrusion prevention systems (IDS/IPS)
• Authentication methods such as tokens, smart cards, personal identification numbers (PINs), passcodes, and identity and access management
• Antivirus/antispam/content filtering