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The State of Enterprise Security

Enterprise security has come a long way, from protecting local data, to securing mobile users, cloud services and applications. Analyst firm 650 Group takes a look at the differing facets of an extremely large, and fast-moving market. Below is a discussion with industry expert 650 Group's principal analyst and co-founder Chris DePuy.

What's happening in network security overall? 



Security breaches and various hacks are very costly.  The good news is that from a big picture perspective, today's sophisticated security offerings are working. They range from security-focused appliances, to virtual security services, to centralized and cloud-based delivered as SaaS, such as firewalls, IPS systems, and anti-virus systems. Security companies are growing fast from increasing enterprise and government investment in these product categories, all aimed at increasing protection of sensitive company data and assets, as well as corporate reputations from cyber threats. 

How is this happening specifically and who exactly is participating?

While cyber criminals are constantly seeking weaknesses across an ever-widening attack surface, namely the Internet, private networks, social media, and mobile users in order to exploit weaknesses, the security industry as a whole has done a terrific job responding. Vendors, such as Palo Alto Networks, Crowdstrike, Check Point, Proofpoint, Cisco, HPE, Fortinet and Z-Scaler, among others, are delivering both innovative products and providing better levels of education for customers to then implement and perform best practices in a consistent and ongoing way.  It's a recipe for success, as the holistic approach works to keep losses down for enterprises of all sizes impacting their bottom lines.

The increased security investment, that followed the increase in losses a few years back, also lets them focus on what they do rather than chasing thieves or apologizing to their customers about breaches and monetary losses. 

Where does the Observability category fit?

Networking, security, and computing infrastructure consist of hardware and software components that generate event data as they run and are configured. The Observability category consists of analytical tools, these include agents and data lakes (or other storage systems). The analytical tool can then monitor and analyze the events to yield actionable insights. Overall, Observability solutions help tie network visibility into one effective system. Event data includes application logs, system logs, security logs, network performance, and packet information.  For the current year (2022), we are projecting revenue of 2022 revenue for Observability is $8.4 B. For the next five years, we forecast that Observability will see a 5-year CAGR of 15%. Companies like Arista, KeySight, Cisco, Data Dog, Gigamon, Cribl, Elastic, New Relic and Splunk compete here.  Observability data can be used to optimize applications and networks and can also be fed into security systems.

What is one of the fastest emerging segments for enterprise security?

With a growth rate of 44% Y/Y, and at the $1.5 B marker in June, SASE is becoming a primary security consideration for enterprises.  SASE is short for Secure Access Service Edge, and it is certainly experiencing rapid growth now as intelligent links allow the LAN, WAN, cloud and traditional campus mobile network to connect as one entity.

The five categories of SASE are SD-WAN, Cloud-delivered Firewall- as-a-Service (FWaaS), CASB, SWG, and ZTNA. Driving these products are significant group of vendors: Cisco, Cloudflare, Fortinet, HPE Aruba, Palo Alto, Versa, and Z-Scaler.
 Over the next five years, from 2021 to 2026, we see the SASE market doubling in size, reaching $11.5B in 2026.  This robust growth rate will be above 17% annually.

SASE-market-revenue-chart 

What about protection for E-mail protection from Phishing and other attempts to steal identities and passwords?


We track security for Email and messaging, these systems to protect email accounts and company communications. The leading threats are malware, spam and phishing attacks. These products are either hardware appliance, virtual software, or by a Cloud/SaaS services. We see this market globally growing to $5.56B by 2026, at a rate of approximately 6% growth each year, with government, financial services and healthcare being 3 of the largest customer segments.

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Chris-DePuy 

Chris DePuy is technology analyst and co-founder at 650 Group, a leading market intelligence research firm for communications, data center, cybersecurity and cloud markets.

Published Monday, August 22, 2022 7:34 AM by David Marshall
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