Cloud security industry to reach $11.2 billion in six years

It’s no secret the cloud is getting bigger. As more and more enterprises turn toward the cloud, their security needs will continue to remain important. Of course, that means more spending within the security industry. In fact, a Transparency Market Research report predicts a 12.8% compound annual growth rate (CAGR) for the industry as a whole, valuing it at $11.2 billion by 2022. Compare that to 2014, when the cloud security industry was only worth $4.5 billion. But how can businesses take advantage of this rapidly changing industry? As the TMR report notes, there are three specific areas to focus on:

Small and Medium-Sized Businesses (SMBs)

In recent years, cloud computing has had strong demand from corporate data centers. These cloud services allow data centers to work just like the Internet itself – resources can be accessed, modified, and shared in a secure and scalable way. And they’re on the rise in small and medium-sized businesses.

A big reason why is the cost. SMBs often don’t have the same amount of spending power (and sometimes the amount of manpower) as larger enterprises, and in the past, it was quite expensive to deploy and maintain their own infrastructure. Often, the in-house solution would be more than is necessary for a smaller business – they can’t afford to be paying for services that they’re not using. Enter the cloud: SMBs can now utilize these resources and grow or reduce services based on their particular needs.

We’re already seeing more SMBs adopt cloud-based tools and services, and this number is only expected to grow. Forbes forecasts that 78% of small businesses in the U.S. will have fully adopted cloud computing by 2020. That’s more than double the current amount today.

Security Software

The pay-as-you-go subscription type is ideal for SMBs, as they can add or remove services as needed. Hybrid security already accounted for the largest market share in 2014, reaching nearly 43 percent; with how easy it is to store data via the cloud, that number should only continue to grow. More security software will be developed to pair with these services and this security as a service will lower the barrier to entry for the enterprise to protect their cloud deployments.

It’s not just software that’s simple to use leading to the growth in cloud security, it’s the devices themselves. The TMR reports that in 2014, IT and telecommunication were the largest end users of cloud security services, with almost 29 percent share in the global market. The increased use in Android phones among end users will lead to even more cloud security services by telecom carriers in the years to come. Which brings me to…

Handheld Devices

You can barely walk down the street anymore without bumping into someone who’s distracted by his or her smartphone. It’s understandable, considering we keep our lives on our mobile devices. While you probably won’t get in any trouble if someone snags a picture of your new puppy, losing a document with sensitive information is a different story. This is becoming more prevalent as companies adopt Choose Your Own Device (CYOD) and Bring Your Own Device (BYOD) policies.

CYOD and BYOD are great ways to allow employees to be flexible with their working habits while also saving the company money, as it doesn’t have to provide a device for each and every employee. AWS has seen this BYOD trend firsthand and how businesses don’t want to manage the devices themselves. Mobility is seen as more about collaboration and identity management, and AWS Workspaces and other services provide a more controlled environment for enterprises wishing to leverage BYOD. However, if employees are using personal devices to access cloud storage accounts or other corporate data, they could be putting the company at risk.   A business must invest in the proper security tools to try and limit these risks as best they can.

To learn more about the best security options for your particular business, please visit our Managed Security page.

David Lucky is a product marketing expert on the Public Cloud marketing team at Rackspace focusing on Fanatical Support for AWS and for the Alibaba Cloud. He works with engineering and sales teams to identify and prioritize customer requirements to migrate and securely manage their cloud deployments. David came to Rackspace from Datapipe where as director of product management for six years he led product development in building services to help enterprise clients leverage managed IT services to solve complex business challenges. David has unique insight into the latest product developments for private, public and hybrid cloud platforms and a keen understanding of industry trends and their impact on business development. He holds an engineering degree from Lehigh University and is based out of Jersey City, NJ. You can follow David on LinkedIn at linkedin.com/in/davidlucky and Twitter @Luckys_Blog.