February 5, 2002 -- (WEB HOST INDUSTRY REVIEW) -- A report released Monday by research organization IDC (idc.com) showed a major market for managed security services in the US, and some major expectations for that market in the next few years.

The report, entitled ?Reality or Illusion: Demystifying the Managed Security Services Market,? states that the US market for managed security services was approximately $720 million in 2000. And it predicts that market will grow to $2.2 billion by 2005, due to an increase in demand for these services.

According to Allan Carey, senior analyst for IDC?s Information Security Services research program, the managed security services market is comprised of a variety of services. ?We looked at most of the major services that are being offered in the marketplace today,? he says, ?which would be managed firewalls, VPNs, intrusion detection systems, vulnerability assessments, Web blocking and filtering and anti-virus.?

And while the market as a whole is growing, Carey says that some services are gaining ground especially quickly. ?The areas that are growing quicker than others would be managed intrusion detection systems and managed vulnerability assessments,? he says.

The report says that most of the opportunity for managed security service providers will come from the small- to medium-sized business sector, where clients in-house capabilities can?t always meet their strong security needs. ?The small- to medium-sized business market,? says Carey, ?lacks the IT resources to do this themselves. The staff that it takes to build an in-house security group, it?s not cost-effective. Also, security is a specialty, and many of them don?t have the skill sets.?

Carey adds that the growing strength and frequency of attacks is an added motivator. ?The threat environment itself is increasing,? he says.

Focusing on the vendors that supply security management and monitoring services on an outsourced basis, IDC says that educating existing and potential customers, as well as understanding the target market are two of the crucial requirements for vendors looking to capitalize on the growth of the market. It identifies network and systems integrators, service providers and pure-play security service firms as some of the competitors in the space.

Designed as a business tool, the report also identifies potential sources of competitive advantage and makes recommendations for competitive positioning in the managed security services marketplace.