A new study by New York-based Access Markets International (AMI) Partners, Inc has projected that global spending on security products and services (on-premise and cloud) by small and medium business will touch $19 billion by 2016. The report indicates that security based expenditure will grow by 10 percent between 2011 and 2016. Of the total spending on security products and services, cloud security services currently account for close to 17 percent, which again is set to grow to 24 percent by 2016.

These findings are a part of the 2012 Global SMB Security Market Assessment report which looks at current and potential market opportunities for security vendors across the globe.

The rapid adoption of cloud-based security services by small and medium business customers is based on factors such as widespread increase in development and availability of mobile devices used for work and private purposes, which represent significant security risks. What further compounds security risk is the increase in the number of employees wanting to use mobile devices to access work related information in a manner similar to how they use the device in their personal lives. SMB ICT management teams are under immense pressure to address all security concerns of these devices. Furthermore, most customers find cloud payment models support advanced and improved range of ICT solutions at cost-effective prices.

In a release, Hugh Gibbs, VP Research for EMEA and report author, said, “Security is a complex issue with rapidly changing permutations. Widespread lack of technical resources and expertise is leading to an increasing desire to outsource the problem amongst small and medium businesses. This is presenting major opportunities for managed service solutions, particularly for skilled, local channel partners and managed security service providers (MSSPs).”

Security vendors are uniquely placed to take advantage of the enormous growth opportunities presented by the expanding and dynamic SMB market, if they can offer viable solutions. Considerations that security vendors need to address include easy-to-use and deployment of cloud service solutions which are cost-effectively priced. AMI research indicates that attractive service bundling will drive service uptake by a factor of four or five.

Vendors also need to ensure the availability of these solutions via different channels such as cloud-enabled local channel partners, and service providers as well as retail/e-tail stores. Additionally, there is a need to ensure robust promotion via a number of information sources and communication channels which combine both traditional and Web based social media.

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