Security vendors face declining sales as SaaS customers rely on cloud providers for security controls

SOURCE: TBR

HAMPTON, N.H. (Dec. 9, 2013) — Technology Business Research Inc. (TBR) recently identified a growing trend among organizations using Software as a Service (SaaS): Increasing use of cloud services is disrupting sales for security vendors. Security vendors that sell products or services directly to end-user organizations will experience a reduction in revenues in 2014 as more organizations move applications and data to the cloud.

In a 2013 TBR study of organizations using SaaS, 53% of respondents expect their security controls to be selected and integrated by their cloud service provider. Among organizations using SaaS, more than half will not purchase or deploy their own security products or services to protect the applications they moved to the cloud.

“As cloud adoption increases, security vendors will not be directly involved in as many organizations’ security purchasing decisions,” said Jane Wright, a TBR senior analyst focusing on information security. “Security vendors will be challenged to replace these lost sales opportunities through other initiatives, such as technology partnerships and marketplace alliances with cloud service providers.”

The SaaS study was part of a series of TBR research studies about the state of security in public, private and hybrid cloud environments. Highlights from the studies will be delivered in a TBR webinar, “Security Opportunities in the Cloud — IT Security Insights from TBR’s Cloud Customer Research” on Dec. 18, 2013. Wright and TBR Senior Analyst Allan Krans will discuss how security vendors can navigate the changing perceptions and role of security in the cloud to grow in 2014. To register for the webinar, visit tbrevents.webex.com.

Detailed findings from TBR research are also covered in a related TBR report, Security Opportunities Driven by Cloud Adoption. The report details the reasons that organizations perceive security as either a driver or a barrier to cloud adoption, and the types of workloads that are most commonly deployed in public, private and hybrid clouds by organizations that consider security as a driver for cloud services.

For more information about Security Opportunities Driven by Cloud Adoption or to purchase the report, please contact Alison Crawford, senior marketing manager, at 603.758.1838 or alison.crawford@tbri.com, or James McIlroy, vice president of sales, at 603.758.1813 or mcilroy@tbri.com.

ABOUT TBR

Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in a format that is uniquely tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis.

TBR has been empowering corporate decision makers since 1996. For more information please visit www.tbri.com.