Cloud, virtualization investments drive security spending, analysts say
by: TEKsystems on Nov. 27, 2012
The advent of virtualization and cloud computing has introduced a number of changes in the data center. While these technologies have made it possible for organizations to improve efficiency, eliminate wasted resources and reduce expenses associated with traditional IT services, they have also introduced unprecedented security concerns.
A recent study by Infonetics Research highlighted these fears, noting that decision-makers are investing in advanced defensive solutions in an effort to keep data centers protected. Analysts said these initiatives will push the data center security appliance market to generate roughly $2.7 billion in revenue by 2016.
"A wave of new spending on data center security is underway. Service providers and enterprises are rebuilding data centers, and they need new security infrastructures to keep up with the performance requirements, network architectures and threats brought about by the move to virtualization and the cloud," said Jeff Wilson, principal analyst for security at Infonetics Research.
Infonetics Research forecast the revenue generated in the virtual security appliance market, in particular, to multiply at a compound annual growth rate of 21 percent through 2016. This increase will be driven by cloud infrastructure expansions, the rapid adoption of server virtualization and the ongoing need for advanced IT support.
A separate report by Gartner also highlighted the growing cloud computing market, noting the market for the technology is forecast to generate roughly $109 billion in revenue by 2012, up 19.6 percent from 2011. As companies continue to adopt the relatively new cloud, decision-makers need to ensure they have the proper IT training and security initiatives in place to ensure the technology is used efficiently and safely in the workplace.