Managed Security Services (MSS) are cloud-based services that oversee the security of a business’s processes and information. The services can be availed on an in-house basis but most businesses prefer to opt for outsourced network security services.
The reason is the need for setting up a separate security infrastructure which will require both monetary and human resource investments. MSS providers offer a wide range of services such as 24/7 security monitoring or security rejoinders at specific incidents. Both have their significance but large enterprises usually prefer to opt for the 24/7 monitoring due to imminent threats.
The global managed security services market is expected to attain a market value of approximately $25 billion with a Compound Annual Growth Rate (CAGR) of 12-14 percent. However, this is not a separate market segment as it is a part of cloud-based services in general. Still, MSS accounts for a whopping 55-60 percent of cloud-based services and the reason for that is the rising demand for remote workplaces and services.
The North America market is the largest MSS market followed by the European Union. APAC and LATAM are among the emerging markets. In terms of market maturity, North America and the European Union are highly mature markets whereas APAC is likely to register rapid growth in the next 5 years. IBM, SecureWorks, Symantec, Dell, AT&T, Verizon, NTT, HPE, CSC, BT, Wipro, and T-Systems are a few of the market leaders that are also key suppliers of MSS.
Managed Security Services Business Ideas:
Managed security services is a vast field that covers various aspects of cybersecurity including firewalls, intrusion prevention and IT forensics such as proactive analysis of security threats and vulnerability, penetration testing, and incident preparation and response. Although these processes are interconnected to each other in some way or the other, each of these aspects has its separate variables and an upcoming enterprise in the initial phases has to understand those.
A comprehensive overview of business ideas in the MSS sector is given here.
Defining the Demographics of the Cybersecurity Company: The demographics of a cybersecurity company determines the range of industries that a business wants to target. An all-encompassing cybersecurity company can target corporate organizations, business owners, banks, institutions, research centers, blue-chip companies, startups, and telecommunication companies. The demographics can also extend to a range where the services can be offered beyond geographical boundaries. The services can also range from security compliance and firewall management to custom security software development and security systems design and management.
Competitive Analysis: The competition in the field of cybersecurity largely depends on the area of specialization and how consolidated or fragmented the industry is. A thorough competitive analysis is required to understand the competition and develop the business’s niche accordingly. In addition, the marketing strategies for promotion and targeting the consumers will also vary.
Analysis of Financial Aspects: A business must perform feasibility studies and market research before starting the enterprise. The amount of financial investment depends on the scale of the business that an entrepreneur wishes to begin with. The best way to arrange investment is corporate funding or bank loans. This will not hurt the personal finances of the owner and he or she may utilize those in the situations where funds are needed immediately. In addition, entrepreneurs who have already been a part of the IT industry may find it easier to arrange financing due to their pre-established contacts and a thorough understanding of the industry.
Legal Aid: A cybersecurity business requires legal aid from consulting firms as the business deals with sensitive information and security threats 24/7. The legal firm should be chosen by keeping the clients and target customers in mind. This is because the firm must have expertise in dealing with the issues that concern regional, national, or international laws. A cybersecurity business can prefer a general partnership with the law firm or they can opt for a Limited Liability Company (LLC). General partnership with a law firm will do the job for a small-scale company but a mid-sized company or a larger organization should partner-up with LLCs.
Challenges: One of the major challenges of the cybersecurity industry is the presence of big players who offer cybersecurity services along with IT consulting. There is a high probability that those businesses are already offering the services that an upcoming business wishes to offer. The best way to deal with this scenario is to develop a different market that offers niche services to particular clients. Some other challenges include compliance issues and legal matters. Government policies and legal regulation are not favorable in every region and therefore, it is better to choose a region that has laws that encourage setting up a cybersecurity business.
Apart from the major components of a business’s framework, there are other elements to consider before setting up a business in the managed security services field. These include intellectual property protection/trademark, documentation/permissions, insurance, location for setting up the infrastructure, technical/manpower requirements, and establishing a service delivery process.