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Western Europe Security Software Market Shares, 2014: Mixed Fortunes in the Land of Giants

Western Europe Security Software Market Shares, 2014: Mixed Fortunes in the Land of GiantsSecurity software in Western Europe is a land of giants. Five global firms (IBM, Intel, Kaspersky, Sophos, and Symantec) control over a third of market volume. Within the more mature segments of the market, this concentration around the largest providers is even clearer. In endpoint security, the largest segment of the security software market, these five giants account for almost 55% of the marketplace. However, it is IDC's view that there is greater complexity at play than is immediately apparent at a high level. For starters, when looking beyond the endpoint security segment upon which the scale of the "big five" rests, other players with more diverse backgrounds emerge. For example, Oracle and Gemalto are major players in identity and access management (IAM); Cisco leads in network security; Raytheon (through its acquisition of Websense) and Zscaler are the big fish in the web security pond.Performance diverges when looking across the market's subsegments, which can roughly be broken down into two camps: the high-growth markets of IAM and security and vulnerability management (SVM) at one end, and the declining messaging, network, and web security markets at the other end. Endpoint security sits in the middle, facing commoditization due to its large scale and well-established nature, but also benefiting from some of the growth drivers that IAM and SVM address more emphatically. There are clear reasons for this disparity. The declining markets have matured to the point of commoditization, with customers looking to reduce cost while maintaining functionality. Conversely, the growth segments help address two emerging security challenges. First, they help to manage the paradigm shift that is digital transformation, with cloud computing and mobility moving apps and data beyond the corporate network. Second, they help to simplify security operations and management in response to the combination of an evolving threat landscape with the security skills shortage.This diversity in performance across the various subsegments is representative of a shift in philosophy that is occurring in the security market at large. This transition is well demonstrated by the changing nature of endpoint protection. With cloud and mobile becoming the default setting for users, and where the scale and sophistication of malware makes it is a question of when — not if — organizations are breached, the value of endpoint is no longer in protecting the device itself. Rather, it is in the threat intelligence that can be gathered from those devices as they come into contact with malware. It is for this reason that vendors are embracing the potential of threat intelligence and analytics. These can help customers to understand activity both within their environments and beyond, bolstered by the broader market insight that third parties can offer, in order to improve decision making and policy enforcement on the basis of risk. This way, by identifying patterns in behavior and building policies around context, it is the nature of an action that is important rather than preexisting knowledge of a threat.This paradigm shift is, to a large extent, determining vendor performance. Providers that buy into this mindset and operate in market segments where these trends have the greatest impact are positioned to perform well. This is reflected in the growth achieved by providers such as EMC, whose RSA security business has been repositioned around an end-to-end analytics platform with the aim of helping customers to understand context and behavior in order to make decisions based on risk."The value proposition of security software is no longer just about protecting against known threats to specific vectors such as endpoints or networks," said Dominic Trott, research manager, IDC's European Security Practice. "Rather, it is about helping the customer to identify and remediate vulnerabilities and breaches as rapidly as possible. This approach needs to account for customers' security posture as a whole, and to protect against both known and unknown threats."

Please Note: Extended description available upon request.

IDC Market Share Figure
Executive Summary
Advice for Technology Suppliers
Market Share
Total Market Dynamics
Endpoint Security
Identity and Access Management
Messaging Security
Network Security
Security and Vulnerability Management
Web Security
Who Shaped the Year
Kaspersky Lab
Market Context
Significant Market Developments
Media Focus on Security
Regulatory Evolution
Technology Evolution
Exchange Rates
Market Definition
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