Latin America Managed Security Services Markets

Research Overview

This Frost & Sullivan research service titled Latin America Managed Security Services Markets provides an overview of the MSS landscape in five different sub-regions in Latin America. It also includes revenues and forecasts for each sub-region, along with a complete analysis of key market drivers, restraints, and trends impacting this market. In this study, Frost & Sullivan's expert analysts thoroughly examine the following technologies: firewall/VPN, IDS/IPS, network assessment and penetration testing, anti-virus/anti-spam/content filtering, and authentication.

Market Overview

Growing Need to Reduce Costs Likely to Hike Adoption of MSS Driving Market Growth

The managed security service (MSS) market in Latin America is about to emerge experience rapid growth in the next few years. MSS providers (MSSP) did not see the expected growth rates in the last 2 years. "The MSS market took a more conservative growth pattern as the acceptance and knowledge of the advantages of this service have not reached the overall potential addressable market yet," says the analyst of the study. "Currently, the MSS market is increasing its popularity not only in the large enterprise segment but also in the mid-market."

The constant desire of companies to cut costs, especially with activities that are not core business activities, will increase in all sub-regions in Latin America. Moreover, the perception about the advantages that an MSS can provide will be clearer not only in the large enterprise segment, but also in the mid-market segment. In the medium term, early adoption in vertical markets is expected to increase participation as manufacturing, healthcare, and utilities are potential vertical markets.

Growth of Mid-market Segment to Boost MSS Market Revenues

The MSS market generated revenues of $35.5 million in 2005 in Latin America, representing 3 percent of the global revenues for the same year. While North America and Europe are declining in growth, Latin America is expected to present increasing growth rate indices in the short term. There are many restraints with high impacts in the short term such as overall prices being high and the lack of MSSP with local structure to offer services.

Many global participants, such as IBM and EDS, have not yet invested in building a local security operations center (SOC) to attend the local demand for MSS, as this market is still in its initial stages of development in this region. Other known global participants in the security space, such as Symantec and ISS, are completely insignificant in Latin America. "With the entrance of the mid-market segment as potential clients and market growth in the Southern Cone and Andean sub-regions, the future landscape of the MSS market is promising," explains the analyst. "The competitiveness in the MSS space is expected to grow in the short and medium term with new market entrants and known global participants that do not as yet offer this service in the Latin American region."

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Geographic Region:

• Brazil
• Mexico
• Southern Cone
• Andean

By Technology:

• Firewall/VPN
• IDS/IPS
• Network Assessment & Penetration Testing
• Anti-virus/ Anti-spam/Content filtering
• Authentication