‘Servistisation models’ becoming commonplace in security industrieshttps://totalsecuritysummit.co.uk/wp-content/uploads/2019/11/key-3348307_1280-2.jpg 960 640 Stuart O'Brien Stuart O'Brien https://secure.gravatar.com/avatar/9defd7b64b55280442ad2d7fb546a9db?s=96&d=mm&r=g
Niche security solutions, rapid advancements in technology and budget pressures are all reasons driving the security industry to explore innovative ‘as-a-service’ business models.
That’s according to analysis from Frost & Sullivan, which asserts that in the end-user space, new business models such as Screening-as-a-Service, Biometrics-as-a-service, ISR-as-a-Service, and Infrastructure-as-a-Service are all gaining traction.
“The ‘servistization’ of the security market is paving the way for the network effect and hybrid business models, not necessarily based on cloud applications, but offering a mix of hardware scalability, limited cost of ownership and controls to clients, such as pay-as-you-grow,” said Aravind Srimoolanathan, Research Analyst, Security, Frost & Sullivan.
“Incumbents providing solutions through conventional means will face competitive pressures from innovative substitutes, which will lead to merger and acquisition ventures and market consolidation.”
While end-user security strategies are evolving, the report says suppliers are increasingly focused on providing solutions that unify and secure processes throughout various applications.
However, given the complexity of the ecosystem and the number of processes involved, Srimoolanathan predicts customers are likely to continue using multiple vendors for different solutions.
To capitalise on further developments, Frost & Sullivan says players should focus on:
- High-interest end-user business models such as Security-as-a-Service, which solves long-pending issues like affordability, ease of operations, and significant aftersales maintenance costs.
- Developing niche AI cloud security solutions through hyper-configurable business models.
- Security data analytics, which is important among end users (private and government) to understand the return on investment of security investments.
- Lucrative cybersecurity service sectors like banking, oil and gas, and ports.
- Niche technologies that are key growth areas, including Identity Management-as-a-Service, Video Analytics-as-a-Service, Electronic Surveillance-as-a-Service, and Cyber-as-a-Service.
“Although as-a-service solutions offer a more customer-centric approach to security, challenges still exist relating to measurement criteria and pricing,” concluded Srimoolanathan.