Managed Security Services Gaining Adoption

Enterprise leaders say that it's becoming difficult to find the highly qualified IT and network security talent they need that's affordable, and so they look to service providers for a solution. According to the latest market study by Forrester Research, demand has been growing.

That said, Forrester believes that using a managed security services provider (MSSP) is more than just a lower-cost alternative to doing the same work in-house. MSSPs are not just managing devices, they also provide insightful analysis that can help with business decisions.

CIOs and other business technology leaders used to resist out-tasking their IT and network security requirements. The talent scarcity issue has helped to change that mindset.

Now, one in four out-task their email filtering, and another 12 percent are very interested in doing so in the next 12 months. Another 13 percent already out-task their vulnerability management and an additional 19 percent say they are very interested in doing so within the next 12 months.

CIOs Budgeting for Managed Security
Although security-related spending didn't grow during most of 2009, Forrester estimates that the managed services market actually grew by approximately 8 percent.

Managed security services (MSS) has evolved considerably. Service offerings exist in various forms -- from pure system management to more sophisticated log analysis using a number of delivery mechanisms, from software-as-a-service (SaaS) and cloud services to on-premises device monitoring and management.

According to Forrester's assessment, while many MSSPs have started to respond to the human resource challenge by offering consulting services, not all providers are equally capable. However, CIOs should expect more MSSPs to further invest in qualified professional services capabilities to provide appropriate integration and consulting guidance.

Managing Security within the Cloud
Forrester said they've received inquiries about providers offering cloud services -- such as distributed denial of service (DDoS) protection and clean-pipe services. Broadband network service providers that own the access circuit have an inherent advantage, because they typically detect and prevent potential attacks sooner than others.

Again, lower cost was the primary driver for moving to a managed services provider, but now cost only ranks fourth in decision criteria. Today there are a number of other incentives to use MSSP services. They include improving the quality of protection; gaining 24x7 support; getting better skill sets and competencies; a reduction is the cost of protection; and decreasing complexity.

Internal security managers are now expected to provide value-added services in support of business objectives -- such as enhancing privacy, achieving compliance, and protecting intellectual property. Therefore, they are demanding additional services from MSSPs, which in return are responding by broadening their traditional service portfolio.

In summary, Forrester offers a key procurement recommendation. They suggest selecting a provider that excels in the specific area you're looking to out-task. They believe that it's extremely important to assess organization culture. It's considered the most important factor that determines whether a relationship is going to succeed. So, start the process by talking to some of the provider's customer references.

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Top Six Motivations for Managed Services

What's motivating you to think about managed network services? Is it cost? If so, you'll be surprised to hear that you're somewhat behind the times. A new report cites six top reasons companies turn to managed services, with cost ranking all the way down the list at number four.

According to Warren H. Williams, Vice President and Senior Program Director of IntelliCom Analytics -- a market research firm focusing on managed services, outsourcing, and other technologies -- cost was a big factor several years ago. Today's list of motivations, however, looks like this:

● Improved overall network performance
● Increased network reliability
● Increased network availability
● Reduced operations cost
● Improved network quality of service
● Reduced business risk

Cost Superseded by Convergence
Cost is still important, certainly, but Williams' research over the last three years reveals a growing shift in priorities. "The corporate network has become a strategic resource; the Internet is a vital part of marketing, investor relations, customer satisfaction, and employee access to information," he writes. "Networking complexity and security requirements have increased exponentially."

This equates to nothing less than a multi-threaded convergence. On the one hand, there's the convergence of communications capabilities, such as data, voice, and video. On the other hand, there's the convergence of the network as the platform for a multitude of business processes.

Combating Complexity
Williams envisions these issues coming together "on a single infrastructure, with the objective ... of facilitating communication between man-to-man, man-to-machine, and machine-to-machine regardless of the endpoint." The end result? A flexible infrastructure that can support changing business conditions. Coupled with this capability, however, he says, is an "ever-increasing complexity, increased performance and reliability expectations, and increased costs for skilled personnel and management platforms."

Thus, the shift in motivation from cost reduction to network performance improvement. When considering managed services, then, you should look at the widest set of advantages possible: not just cost reduction, or the avoidance of high-priced personnel, but the advantage that comes from the ability to bring more flexibility and agility to your business.

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Managed Security Services Growing Among SMBs

A new report from Forrester Research on the state of IT security at small to midsize businesses (SMB) in North America and Europe predicts ongoing growth in the managed security space.

In a result similar to that of enterprise respondents, SMB executives reported that the two top drivers for using managed security services is the demand for a specialized skill set that security requires (cited by 31% of the respondents) and the need to reduce costs (cited by 24%).

Other reasons cited for adopting managed security services include:

• The need to reduce complexity (19%)
• The need for 24/7 security coverage (19%)
• The rest of the IT environment is outsourced (5%)
  

Managed Services Tops for Filtering and Monitoring
The report also revealed that the top two services SMBs ask from their managed security provider are e-mail or Web content filtering (36%) and network firewall monitoring (33%). Forrester believes that the biggest uptick in the next year, however, will come from increased use of vulnerability management and assessment. Some 20% of SMBs plan to deploy these services in the next twelve months.

The Forrester report clearly shows that SMBs have a strong interest in all facets of managed security services. Some 23% are already using it for identity and access management, and another 35% are interested in it, but either have no plans or no budget for adding it to their slate of services.

Similar proportions of SMB executives recognize these issues: host event log monitoring or management (31% are interested but have no plans or budget); IDS/IPS monitoring or management (30%); endpoint security (34%); and regulatory compliance monitoring and assessment (31%).

When To Add Managed Services
The Forrester survey didn't tackle one of the most interesting questions from a managed services standpoint (in fairness, the focus was on security, not managed services). That is, what will it take for SMBs to start adopting the services in which they express interest, but have not yet budgeted for?

Our recommendation is to be proactive and deliberate about adding services. Don't wait for the need to arise; develop a plan to takes into account your security needs and build capabilities into both your budget and deployment plans on an incremental basis. That way, you'll enjoy the highest level of protection with a minimum amount of disruption.

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