Menu
​Security vendors take drastic steps to address slowing market growth

​Security vendors take drastic steps to address slowing market growth

Security market of the future to be heavily influenced and controlled by pure-play security vendors.

Enterprise security revenue growth has decelerated, partly due to the changing attack landscape that is characterised by a more targeted breed of data breaches.

To adapt to diminishing growth opportunities, vendors are adjusting investments and ownership in security business units, taking drastic steps to address slowing market movement.

In the past year, IT systems vendors such as Dell Technologies, Hewlett Packard Enterprise (HPE) and Intel made acquisitions or spun out large portions of their security portfolios.

“These are very disruptive, and in some cases unprecedented, steps that shifted competitive positions and market shares,” Technology Business Research principal analyst, Jane Wright, said.

“The enterprise security market of the future will be more heavily influenced and controlled by pure play security vendors and their investment partners.”

In this changing competitive environment, Wright believes security vendors will face increased pressure from boards and investors to achieve both growth and profitability.

According to TBR findings, ten of the 24 benchmarked vendors accomplished this difficult feat in 2Q16.

TBR aligned benchmarked vendors’ R&D and sales and marketing investments with revenue growth rates to uncover the most effective investment strategies of small, midsize and large security vendors.

Successful (i.e., profitable and growing) small security vendors, for example, spent 16.3 per cent of revenue on R&D and 26.3 per cent of revenue on sales and marketing, on average, in 2Q16.

Although overall year-to-year revenue growth for benchmarked vendors decelerated from 20.8 per cent in 2Q15 to 15.9 per cent in 2Q16, some segments of the enterprise security market captured larger portions of customers’ spending.

Meanwhile, the endpoint security and security management segments netted the largest increases in customers’ security spending over the past two years, as customers recognised the growing importance of securing endpoints outside their corporate firewalls and managing complex security deployments for improved threat detection and response.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags Hewlett Packard EnterprisesecurityTechnology Business ResearchintelDell Technologies

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments