The current state of the global IT security landscape is turbulent, to say the least. Over the past few years, high-profile hacks and data breaches have increased dramatically not only in terms of their quantity, but also the impact they have on affected organisations and individuals. The recent wave of ransomware attacks like WannaCry and GoldenEye/Petya have brought a new dimension to the severity of cybercrime, with some going as far as to say we’re witnessing the beginning of a global ransomware epidemic.
Consequently, cybersecurity is becoming a serious concern for organisations in every industry, and MSPs will be expected to ramp up their security efforts considerably if they are to remain competitive. So, with that in mind, let’s take a look at three key insights about the state of the MSS market in 2020.
1. Cloud subscription revenues could surpass $75 billion by 2020
Cloud adoption has been rising dramatically in recent years, and it shows no signs of slowing down anytime soon. With both consumer and enterprise technologies shifting towards the cloud, the global cloud market has already established itself as a central part of our private and professional lives. Globally, cloud subscription revenues are expected to grow by 10% per annum over the next four to five years, reaching as much as $76 billion by 2020. This will not only place more pressure on cloud providers to provide end-to-end security and encryption, it will also place the onus on organisations and individuals to ensure they’re doing their bit to keep sensitive information secure. This article on AppsRunTheWorld note that cloud adoption in the Asia-Pacific region remains the fastest globally: “In the second quarter of 2016, SAP reported that Japan, China and India posted double-digit growth in Cloud sales contributing to a 47% jump in constant currency the highest across all regions in Cloud subscriptions and support revenues for the Asia Pacific region. In the fourth quarter of 2015, SAP Cloud sales in Asia Pacific was equally robust by chalking up a 48% jump.”
2. Virtual and Augmented Reality revenue will increase by more than $150 billion in just four years
While Virtual Reality and Augmented Reality have been the stuff of science fiction for decades, they’ve arrived in the ‘real world’ in a big way in recent years. Though the most well-known applications of both technologies so far have been in the gaming industry (Pokemon Go as an example of AR technology, and the Oculus Rift, Playstation VR and HTC Vive as current examples of VR gaming technology), an increasing number of industries are turning on to the potential of these technologies. While the IDC predicts a global revenue of $162 billion by 2020, a substantial part of that will result from hardware sales, but notes that service revenues are likely to eclipse them as demand for support in enterprise grows.
3. Asia Pacific’s aging market potential will surpass $3 trillion by 2020
According to the 2015 Asia Pacific Silver Economy Business Opportunities Report, the ageing market in the Asia-Pacific region is predicted to reach US$3.3 trillion by 2020. Further, the report placed Singapore first in the Ageing Asia Silver Economy Index, with Hong Kong second and Australia in third place. Janice Chia, founder of Ageing Asia Pty Ltd, believes that the Asia-Pacific region will be more ‘ageing aware’, causing communities to become more sensitive to the needs of the ageing population. “The corporate sector would start to incorporate ageing demographics as one of the key considerations for their business strategies,” says Chia, “especially in the development of new products and service offerings across all industries, thus ensuring all forms of support are integrated for the ageing population.” Internet of Things (IoT) technologies and robotics are likely to form a significant part of this shift, and ensuring these products and services are secure will be a key part of meeting the needs of this market.
The next three to five years are sure to be an eventful time for the Managed Security Services industry, and identifying partners who can help you deliver a service that goes above and beyond your clients’ expectations will be essential for remaining relevant. To find out more about how prepared you are for tomorrow’s MSP industry, take our free IT Health Check.