Are LATAM Companies Adopting Managed Security Services?

Analysis of the Latin American Managed Security Services Market

Trends and Threats will Drive the Latin American Market

Mauricio Chede, Research Analyst

Information & Communication Technologies

30 October 2014

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Today’s Presenter

•Research Analyst with expertise on IT Services, such as MSS, Datacenter Services,

Cloud Computing and Mobility

•Based in São Paulo, covering most important economies in Latin America

•Bachelor in Business Administration from Escola Superior de Propaganda e Marketing

(ESPM),

Mauricio Chede, Research Analyst

Frost & Sullivan

Follow me on:

[email protected]

www.linkedin.com/in/mauriciochede/

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MSS Methodology

These services include some degree of

proactive monitoring of the customer’s

security environment, and may

encompass protection against denial of

service attacks, email viruses/worms,

spam, and other various cyber maladies.

This study excludes professional services

except those required for installation of

MSS.

Managed Security Services Security asset management and

monitoring

Threat intelligence, research,

detection and remediation

Risk and compliance management

Advanced and Emerging Managed

Security Services

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Market & Technology Trends Stimulating MSS Adoption

• Significant security risks and legal issues are arisingbecause of the adoption of BYOD and this bodes wellfor managed security service providers.

Mobilityand BYOD

• The increase in public and private cloud deploymentshas presented prime opportunities for managedsecurity service which can add cloud security to theirbase offerings.

Cloud Computing

• Big Data approaches are being used to create APTdetection and defense products for managedsecurity service providers.

Big Data

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The Managed Security Services Market is Driven by Industry, Technical and Economic Factors

•TCO

•Cloud & SaaS growth

•Security Skills Shortage

•Business Continuity

•Mobile devices undercoming the network perimeter

• Compliance

• Operational Complexity

• Industry Factors

• Economic Factors

• Brand Risk Factors

• Incident Response

• Forensics

• E-Discovery

• APT

• DDoS

Threat Environment

Threat Environment

Post Incident

Post Incident

IT Factors

IT Factors

Market FactorsMarket Factors

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MSS Evolve to Secure Changing Technology and in Parallel with the Perceived Threat

20112009 2013 2018

Advanced analytics

solutions becomes

a key differentiator

Need for

combined

services:

AV/AS/CF

Hosted demand

emerging – but

slower than

expected

Growth in

Managed

SIEM and log

management

Increase

demand in

compliance

services

Expansion and

advancement of

mobile security

offerings

Enhanced threat

detection &

remediation

capabilities

Managed security

migrates to cloud-

delivered security

services

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Drivers and Restraints Impacting MSS Adoption

Focus on Core Business

New Technologies

Increasing threats/maturity/complexity

Providers Expetise

Awareness

Lack of Budget

Data and Infrastructure Control

Lack of Qualified Workforce

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Maturing Market Still with Great Opportunity for Growth

Cyber attach more sophisticated. APT, DDoS, Zero-day attacks have caused monetary damage on a

global scale.

Complexity of the threats being combatted, impacts the complexity of the existing tools.

Number of security tools grows to combat new types of threats, creating a problem to security

professionals.

Total Managed Security Services Market: Revenue Forecast, Latin America, 2013–2019Revenue CAGR, 2013–2019 = 8.6%

Source : Frost & Sullivan

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Brazil is Still the Market Leader, but other Regions are Showing an Interesting Growth Rate

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Different Moment for Each Service Offering

SAMM – Lower margin than other services . Base for security. Most companies are playing on this offer segment.

RCM – Expected to grow as companies continue to struggle with compliance requirements.

TIRDR – APT sophistication is growing faster than security staffing and budgeting. Normally response to a breach

AEMSS – New and innovative services. providers are offering these services as a result of customer needs.

The Base year is 2013Source : Frost & Sullivan

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Five Factors are Leading Competition

Stronger relationships with Consulting and Professional Services is being required.

•These services are critical for new business development for managed security services

Advanced Threat Detection and Remediation Services is becoming a differentiator.

•Vendors are applying new tools to provide differentiated services.

Services are being integrated into Managed Services.

•Virtualized security services such as firewall services are becoming part of MSSP portfolios.

Telecommunication providers with managed security service offerings are leveraging their access customers to develop new managed security service accounts.

Need for compliance assistance is a strong source of funding for managed security services.

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Recommendations

1Successful providers are the companies that stay close to their customers

and provide solutions. Managed security service providers that focus on

their customers are most success in growing revenue.

2Customers want solutions that solve problems and not just add to the

number of alerts to be addressed. The most successful managed security

service providers will approach this sector with a unique service attribution

such as big data or unique sensory data collection.

3Providing consulting, professional & technical services is not a requirement

for managed security services providers. . . unless the provider is looking to

grow its revenue

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For Additional Information

Francesca Valente

Corporate Communications

(54 11) 4777 5300

[email protected]

Mauricio Chede

Research Analyst

Information & Communication Technologies

(55 11) 3065 8444

[email protected]

Bruno Tasco

Senior Industry Analyst

Information & Communication Technologies

(55 11) 3065 8430

[email protected]

Antonio Carlos Tarjan

Strategic Account Executive

Information & Communication Technologies

(55 11) 3065 8428

[email protected]