Story image

GlobalData: A/NZ security service spending set to skyrocket

20 Nov 2019
Twitter
Facebook

The market of data and security management services, known as managed security services (MSS), is expected to reach US$20.2 billion in the Asia-Pacific (APAC) region by 2023 year-end, says GlobalData, a leading data and analytics company. 

In the current age of digitalisation, enterprises continue to focus on the critical data assets’ protection against breaches and intrusions. 

According to GlobalData’s Market Opportunity Forecasts Model, countries such as Australia, New Zealand, Japan, South Korea and Singapore are estimated to witness the highest compound annual growth rates (CAGR) during the period, whereas China, Japan and Australia are estimated to be largest MSS markets, accounting for nearly two-thirds of the overall market in 2023. 

“Cybersecurity laws and regulations, and amendments introduced in various countries are forcing companies to focus on security compliance,” says GlobalData lead ICT analyst Sunil Kumar Verma.

“As a result, majority of the companies in the region are increasingly outsourcing their security practices to security services providers, either partially or entirely. Against this backdrop, the operating model with regards to security practices management continues to shift from a capital expenditure (CapEx) to an operational expenditure (OpEx) model.

“Enterprises across all types and sizes either lack the required resources or do not have the capital required for monitoring their business themselves. As a result, they are increasingly relying on security specialists for their various requirements, which will continue to become more complex as they expand."

Enterprises across the APAC region continue to further strengthen their cybersecurity capabilities, resulting in an increased demand for MSS.

For example, companies in Australia are witnessing increased instances of cybercrimes. As a result, the government had allocated AU$260m in its 2018 budget to beef up cybersecurity initiatives. 

Similarly, the New Zealand Government too announced NZ$10m of funding for supporting its Pacific cybersecurity strategy. 

This included an allocation of NZ$8.7m for the New Zealand's Computer Emergency Response Team (CERT) and NZ$1m for the enhancement of government's cybersecurity capabilities.

In Japan too, the Tokyo Olympics in 2020 is expected to boost the MSS market, owing to the increasing number of people and enterprises being involved in the event. 

Going by historical records, cyber-attacks have increased in host countries around event periods, such as during the Olympics in 2012 and 2016, and during the Asian Games in Korea in 2018.

The MSS market in Japan is expected to witness growth as enterprises are expected to invest in services instead of on-premise solutions and also support their need to strengthen cybersecurity measures.

"In addition to the government support and enterprises' initiatives to strengthen the cybersecurity capabilities, the growing maturity of the cloud landscape, mandatory adherence to cybersecurity compliance requirements, expanding connected devices ecosystem, initiatives to reduce CapEx and focus on core competencies and outsourcing secondary capabilities, will be the key factors driving the increased spending on MSS in the region,” Verma adds.

Link image
Keep your business and personnel operational when disasters strike.
When the unexpected happens, eliminate downtime and business disruptions at Interactive’s Premium Business Continuity facilities. All are equipped with the latest communications, security, power technology and data centres.More
Link image
White Paper: Choosing the right Business Continuity and Disaster Recovery service provider.
You have designed your Business Continuity Plan and the next step is to choose your service provider. What are the most important things you should consider when choosing one for your business?More
Story image
03 Dec
How digital transformation is changing the retail industry - Fujitsu
Fujitsu described its vision for the future of digitalised retail services and proposes how retail and other industries will be transformed by its digital technologies.More
Story image
03 Dec
Dicker Data named Trend Micro distributor of the year
"We value each and every one of our partners for their support in delivering the most innovative and integrated security solutions to our customers whether it's for cloud, network, endpoint, or hybrid environments."More
Story image
29 Nov
Gartner recognises Pega in low-code application platforms report
“Low-code application platforms continue to grow in capability and maturity, addressing more enterprise use cases and providing rapid application delivery with fewer skills.”More
Download image
Hybrid cloud connectivity with VMware Cloud on AWS
The forum introduced the forthcoming VMware Cloud on AWS service managed by Rackspace to business leaders in Australia. More