Home >Global security industry advances with adoption of servistization models
Global security industry advances with adoption of servistization models
28 November 2019
An increasing need for niche security solutions, rapid advancements in technology, and budget pressures are driving the security industry to explore innovative “as-a-service” business models, according to a new report from Frost & Sullivan.
In the end-user space, new business models such as Screening-as-a-Service, Biometrics-as-a-Service, ISR-as-a-Service, and Infrastructure-as-a-Service are gaining traction.
“The ‘servistization’ of the security market is paving the way for the network effect and hybrid business models, not necessarily based on cloud applications, but offering a mix of hardware scalability, limited cost of ownership and controls to clients, such as pay-as-you-grow,” Aravind Srimoolanathan, research analyst, Security, Frost & Sullivan, said.
“Incumbents providing solutions through conventional means will face competitive pressures from innovative substitutes, which will lead to merger and acquisition ventures and market consolidation.”
While end-user security strategies are evolving, suppliers are increasingly focused on providing solutions that unify and secure processes throughout various applications. However, given the complexity of the ecosystem and the number of process involved, Srimoolanathan predicts customers are likely to continue using multiple vendors for different solutions.
To capitalize on further developments, players should focus on:
- High-interest end-user business models such as Security-as-a-Service, which solves long-pending issues like affordability, ease of operations, and significant aftersales maintenance costs.
- Developing niche AI cloud security solutions through hyper-configurable business models.
- Security data analytics, which is important among end users (private and government) to understand the return on investment of security investments.
- Lucrative cybersecurity service sectors like banking, oil and gas, and ports.
- Niche technologies that are key growth areas, including Identity Management-as-a-Service, Video Analytics-as-a-Service, Electronic Surveillance-as-a-Service, and Cyber-as-a-Service.
“Although as-a-service solutions offer a more customer-centric approach to security, challenges still exist relating to measurement criteria and pricing,” noted Srimoolanathan.
Frost & Sullivan’s research, Evolving Business Models in the Global Security Industry, discusses the industry initiatives currently being pursued for security process efficiency, cost optimization through new business models, the impact of digitalization, and the overall impact on the value chain.
For further information on this analysis visit: http://frost.ly/3vv