Managed Security Services – Industry Brief
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01 Introduction to Managed Security Services 04 02 Managed Security Services Landscape 07 03 Industry Trends 26 04 Transactions & Valuations Overview 34 2 Growth momentum in segments such as Threat Intelligence, The global Managed Security Services (MSS) market size was $15 billion in Global Segmental Research, Detection and Remediation (TIRDR) and Regulatory 2018, and is projected to grow to $23 billion by 2021 at a Landscape Forecast Compliance Management (RCM) is expected to drive future compound annual growth rate (CAGR) of 15% growth of the MSS market M&A activity is primarily targeted at horizontal Security Asset Management and Monitoring acquisitions to either acquire/expand technical Transactions Segmental (SAMM), the largest revenue contributor at capabilities/portfolio of offerings, or enhance Revenue 50%, is expected to grow slower than the geographical presence overall MSS market The financial services and government Vertical sectors remain the top two revenue Key inhibitors to the growth of MSS include the Growth contributors to the global MSS market, lack of threat visibility and clarity on assessment of Breakup with the manufacturing sector growing return on investment Inhibitors quickly due to digital transformation Key factors influencing the growing adoption of MSS globally include Growth increasing attack surface, sophistication of threat actors, economies Drivers of scale, and stringent regulations 3 Introduction To Managed Security Services 4 Defining Managed Security Services Benefits Of Managed Security Services Global Footprint Access to an MSSP’s global, round-the-clock SOCs for state-of- the-art security tools and intelligence IT or Network Security Services outsourced to a service provider Cost Efficiencies Access to a team of seasoned security experts at a fraction of the cost of building in-house Market-Leading Technologies Managed Advanced monitoring, analysis, and investigation of threats to Round-the-clock remote management or ensure best-in-class defense and operational optimization Security Services monitoring of IT security functions Rapid Incident Response Continuous and unmatched enterprise security incident handling through the use of state-of-the-art digital forensics SIEM1 & Log Management Insights Using SIEM systems to collect logs and other security-related Delivered largely via remote security operations documentation for analysis on a single platform centers (SOCs) Security Asset Management Relief MSSPs have a holistic view of the required security environment, Impact On Businesses and expertise in integrating the latest security technologies » Building and maintaining teams of people, established processes, and office locations in-house is increasingly expensive and time- Monitoring of Advanced Threat Sophisticated security technologies and the latest threat consuming intelligence provides proactive monitoring and threat detection » While businesses benefit from MSSPs’ predictable outcome-based pricing and reduced exposure to operational risk, the benefits extend beyond cost reduction Risk & Compliance Management Staying up-to-date with the constantly evolving regulatory » Businesses are able to transform business critical processes, and take advantage of new, scalable innovative technology and framework to ensure that assets are well protected expertise from this long-term, tightly integrated partnership 5 Source: Avendus Research, Gartner, IDC | SIEM1 = Security Information & Event Management Key Notes » Risks arising from specific threats and threat actors have increased MSS solutions both in terms of absolute number and impact move to the Advanced » Analytics and cloud capabilities are non-negotiable components of analytics endpoint DDoS1 solutions security services today, while the use of predictive analytics and mitigation become a key differentiator Enhanced becomes a public cloud will be non-negotiable in the future threat key industry detection and driver » Industry expertise has moved beyond understanding of vertical- Increased remediation demand for capabilities specific regulatory requirements and threats Growth in compliance managed services » Scarcity of talent has increasingly complicated the security landscape Hosted SIEM and log Need for demand management combined emerging, but services – slower than both security expected solutions and management services 2009 2011 2015 2020 Managed Security Service Technology Roadmap, Global, 2009-2020 6 Source: Frost & Sullivan, HfS | DDoS1 = Distributed Denial of Service Managed Security Services Landscape 7 Segments Of Managed Security Services Types Of Managed Security Services » Asset maintenance and upgrades ADVANCED SERVICES Advanced » Security assets policy management Security Asset Detection & » Event correlation, analysis, and Monitoring and security alert notification Analytics Management Threat » Customer premises equipment (CPE) Managed Techniques (SAMM) Intelligence and hosted services Encryption » Compliance audits and reporting File Integrity Web Application (system segmentation) Monitoring Risk and » Vulnerability assessments and Identity Access Scanning Compliance scanning, partner program Management Management management, and compliance Web Application (RCM) support Patch Managed SIEM Firewalls » Research and forensics of threat Management actors and vulnerabilities » Threat detection, analysis, and Network Access Managed Managed Threat 1 prediction of breaches Control UTM 4 Intelligence, Research, DDoS SOC » Proactive attack remediation and Managed Log Managed Endpoint – incident abatement Detection and Prevention Remediation (TIRDR) Monitoring / Antivirus, Managed Management Firewalls, etc. » Detection of DDoS attacks and means to prevent Managed Content Security » Removal of malicious traffic through Managed SVM3 Managed IDPS2 Distributed dedicated scrubbing centers or a Denial of Service hybrid of on-premise equipment and 8 (DDoS) cloud-based services » Identity and Access Management COMPLEMENTARY CORE SERVICES » Managed mobile endpoint security SERVICES » Managed Data Loss Prevention (DLP) Advanced Forensics » Other next-generation managed and Emerging Breach Compliance security services Managed Security Incident Response Management Services Architecture & Design Assessment 8 Source: Frost & Sullivan, IDC | UTM1 = Unified Threat Management, IDPS2 = Intrusion Detection & Prevention System, SVM3 = Storage Virtual Machine; SOC4 = Security Operations Center 1 Sub-Segments Of Managed Security Services Vendors » Real-time analysis of security alerts generated by SIEM1 and applications and network MDR2 hardware » Threat hunting and immediate responses to breaches » Measures taken to improve the security of an application – often by Application finding, fixing, and preventing security Security vulnerabilities » Protection of databases from threats and vulnerabilities associated with interconnected computing Database » Recovery of data in the event Security & of a breach or disaster to the DRaaS5 database » A program that provides protection for companies' messaging infrastructure Messaging » Programs include IP reputation-based anti-spam, pattern-based anti-spam, » Helps define strategy, & Email Security identify threats, deploy administrator defined block/allow technologies and ensure lists, mail antivirus, zero-hour operational readiness malware detection and email » This includes penetration intrusion prevention SECURITY SECURITY ASSET MONITORING MANAGEMENT AND (SAMM) testing, risk assessments, Security vulnerability assessments, Consulting PCI DSS3, GDPR4, and & Services forensic analysis SIEM1 = Security Information & Event Management; MDR2 = Managed Detection & Response; PCI DSS3 = Payment Card Industry Data Security Standard; GDPR4 = General Data Protection Regulations; DRaaS5 = Disaster Recovery-as-a-Service 9 Source: Avendus Research, CapIQ 2 Sub-Segments Of Managed Security Services Vendors » Company-wide visibility of hazards, risks and risk Risk assessments Assessment & » This allows enterprises to spot trends earlier, and to Visibility implement corrective and preventative actions quicker » Identify and manage risk/compliance Digital Risk exposure to cybersecurity threats and Management third party vendors – both in terms of vulnerability and data privacy » Simulations are conducted in a manner similar to how an attacker would attempt a Vulnerability breach Assessment & » To discover points of Pen Testing exploitation and test the IT system’s breach security » Comprises of a comprehensive, outside-in view of a company's overall Security cybersecurity posture » Continuous monitoring across risk Rating & Risk factors including endpoints, RISK RISK COMPLIANCE AND MANAGEMENT (RCM) Analysis applications, firewalls among others » Ensures that knowledge and training is up-to-date » Includes the protection of Security both the physical and Awareness & informational assets of an Training organization 10 Source: Avendus Research, CapIQ 3 Sub-Segments Of Managed Security Services Vendors » Monitoring and analysis of computer network traffic to NGFW1, gather information, legal Network Analysis & evidence, or detect intrusions Forensics » Evidence-based knowledge, including Threat context, mechanisms, indicators, Intelligence implications, and action-oriented advice about an existing or emerging threat to assets » Detecting and preventing TIRDR fraudulent transactions – when a merchant account is Fraud & used without the intention of Transaction operating a legitimate Security business transaction » Model