The future look and feel of the security software market will be shaped by emerging technologies, a quest for flexibility and a new regulatory environment, as the channel aims to capitalise on changing customer demands.
Specifically, the use of advanced analytics and expanded ecosystems will disrupt the status quo, alongside the adoption of Software-as-a-Service (SaaS) and managed services.
Furthermore, and according to Gartner research, the prospect of punitive regulations are causing enterprises to rethink security and risk management software requirements and investments.
“The overall security market is undergoing a period of disruption,” Gartner principal research analyst Deborah Kish said.
“This is due to the rapid transition to cloud-based digital business and technology models that are changing how risk and security functions deliver value in an organisation.
“At the same time, the threat landscape and rise in the number of high-impact security incidents are also creating demand for security technologies and innovations that deliver greater effectiveness.”
By 2020, Kish said advanced security analytics will be embedded in at least 75 per cent of security products, as businesses seek innovation and protection in equal measure.
“Enterprises are increasingly seeking products that incorporate "smarter" predictive and prescriptive analytic technologies, which help warn users of potential security incidents and provide guidance on optimal responses,” Kish explained.
According to Kish, these more-advanced analytical capabilities are driven by a variety of underlying technologies, such as heuristics, artificial intelligence/machine learning and other techniques.
“Successful vendors will work with customers and prospects to understand use cases where analytics will deliver significant value and augment limited security staff and resources,” Kish added.
Looking ahead, Kish said success will be defined by the ability to acquire and integrate products and technologies, in a bid to increase competitive share and enter new markets.
Given the preponderance of start-ups and smaller vendors pursuing innovative approaches to security problems, acquisition, integration and consolidation are highly effective strategies to increase market share and enter completely new markets,” Kish said.
In many cases, mature vendors in search of continued growth are acquiring faster-growing companies from emerging adjacent markets.
Yet in other cases, vendors are optimising profits by consolidating similar products under a single brand, therefore leveraging economies of scale by combining core functions, such as development, support, sales and marketing.
From a SaaS perspective, Kish said security buyers are making security product investment decisions that support digital business, fit current challenges and deliver performance value.
“In order to do this, they have a preference for products in an as-a-service format,” Kish added. “SaaS for security and risk management is becoming critical as customers transition to digital business practices.”
However, Kish said providers must consider the financial implications of maintaining support for legacy security products while investing in an as-a-service product or managed service.
In assessing the global market, Kish believes the regulatory environment will create opportunities for security software providers in the years ahead.
The EU General Data Protection Regulation (GDPR) comes into effect on 25 May, 2018 and could see organisations facing heavy fines should they receive a single complaint for mishandling private data.
“Punitive regulations will create board-level fears, driving security software budget decisions based on the potential financial impact of fines and noncompliance,” Kish added.
“Consequently, enterprises will look to providers with products that provide the needed visibility and control of their data.
“Providers should identify the key regulatory requirements and constraints in target geographies by working with legal counsel to deliver product and service choices that will alleviate board-level fears.”
