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SDN, NFV Unlock Massive Potential For Managed Security Services: IHS

Cloud Computing

SDN, NFV Unlock Massive Potential For Managed Security Services: IHS

Software-defined Networking (SDN) and Network Functions Virtualization (NFV) unveil massive potential for managed security services, reveals a new report from IHS Technology.


According to the report, the managed security services marked a global revenue of $17.4 billion in 2015, registering a 9% growth from the previous year. The market is forecasted to grow by one-third in next five years. The lion share of this revenue came from customer-premises equipment (CPE)-based services, about 54%, and the rest 46% came from cloud-based offerings. By 2020, this revenue share is expected to get reversed with cloud-based services contributing more to the industry.

The cloud-based services have grown 12% in 2015 compared to the previous year. It is expected to grow at a CAGR of 9% by 2020. Content security will be the major contributor to the revenue of cloud-based security. This is followed by managed firewall services, other security services, distributed denial of service (DDoS) mitigation, and intrusion detection and prevention systems.

Currently, there is a high utilization of SDN and NFV to scale the managed security services. However, when virtual CPE solutions come into play, they become the major sales drivers. The SDN deployments in the cloud and hosting environments will assist providers to deliver a more scalable and flexible cloud security services. “The availability of a new generation of virtual CPE services driven by NFV will enable carriers to deliver services to the customer edge on a common hardware platform capable of running virtual machines. While common wisdom says the transition to the cloud and cloud services for security will overwhelm CPE, there’s still a play for on-premises services, even in a virtualized world,” Jeff Wilson, cyber security research director, IHS Technology elucidated.

According to IHS Technology, the majority of the managed security services providers already exceeded their revenue targets for the year.

Ria Lakshman. V is a lead news writer at The Telecom Times. She studied Journalism at Manipal School of Communication and proceeded to work in newspapers and magazines, with technology as her focus area. Passionate about Telecommunications sector, her move to 'The Telecom Times' was a natural choice. Alongside, she also writes for Telecom Talk, where she covers news and tech commentaries in the sector of telecom. In the free time, Ria loves to go camping, read books, or sketch illustrations. She also runs a local design studio and promotes eco-friendly crafts. Ria can be found sharing her knowledge and insights on Twitter.



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