4 Ways the Shift Toward Managed Services Is Reshaping Security
… professional service automation, and remote monitoring and management platforms to introduce packaged security services in addition to IT management services. Due to this overlap, there is also increased demand for tighter technology integrations among solutions enabling managed IT and managed security services, which in turn enable channel partners to provide a packaged and more efficient managed services portfolio that meets more of their customers’ needs.
3. Growth of New Security Services and Subscription Models
The adoption of managed security services within the channel is bringing new security solutions to the forefront. Assessment services related to dark web “investigations,” and cybersecurity scoring or rating services are now available in the market. Additionally, organizations looking to outsource security management and simply re-sell managed security services are driving trends such as SOC (security operations center)-as-a-Service. And, widespread uncertainty and confusion around security liability and risk is also driving business opportunity for cybersecurity insurance and risk assessment service providers.
As partners build their managed security services customer base, the business trends continue to transition heavily toward recurring revenue models. Managed services create an inherent shift from product delivery to services, creating challenges for traditional distribution models leveraging security product offerings that are based on fixed-term product sales and renewals. There’s now a growing push to evolve and support recurring billing and invoicing for security offerings. Partners offering managed security services will continue to drive the need for distribution marketplaces with easy, continuous and monthly recurring billing, and vendor solutions that are designed to support subscription models.
4. A Shift That’s Here to Stay
Overall, the demand for managed security services and the growth of this market has been fueled by the lack of dedicated security budgets and cybersecurity skill set at small, midsized and distributed enterprises. The need for channel profitability will also challenge the security market to better orchestrate, integrate and automate services across applications, networks, Wi-Fi, endpoints, identities and other IT infrastructure. Channel partners and vendors alike are aware of this trend and will continue to develop, adopt and transition toward solutions that enable and support the growing managed security services landscape.
Himanshu Verma is a director of product management at WatchGuard Technologies, with a primary focus on delivering WatchGuard products and solutions to the managed security service provider (MSSP) market. Prior to WatchGuard, he held product management roles for the enterprise authentication-as-a-service division of SafeNet (now Gemalto). During his time at SafeNet, Himanshu helped transition the enterprise authentication business from a traditional on-premises product to a successful SaaS solution. He has extensive experience in in-bound and out-bound product management, engineering and R&D for information security and data protection technologies. Follow @watchguard on Twitter or Verma on LinkedIn.