Cloud Security Spending Estimated to Reach $9 Billion by 2020

- June 16, 2017

Despite any concerns about security, the cloud computing and cloud services sectors are growing at an amazing rate. Analyst firm Forrester calls public cloud services the “biggest disruption in the tech market in the past 15 years.”

In a new report released last week, Forrester reports that revenues from cloud services are growing at 30 percent yearly, now a $116 billion industry up from $68 billion in 2015.

This growth in turn has made security for the data and applications operating in the cloud critical to business operations. Forrester also reports that revenues for global cloud security solutions will reach 3.5 billion by 2021. The firm’s analysis identifies four categories of cloud security solutions. Those are cloud security gateways, centralized security management, hypervisor security, and as-a-service platform and infrastructure security.

Currently, Forrester’s report says, cloud security solutions represents a small portion of the overall $24 billion market that is “security software,” but the rapid growth of the cloud and its demand for security solutions is spurring big vendors to enter the market. BlueCoat, Oracle, Symantec, Microsoft and—of course—Cisco have all made acquisitions in the cloud security space.

Gartner has a much more ambitious forecast for cloud security, reporting this week that the market would reach $9 billion by 2020. But it’s important to note that Gartner’s analysis includes more services than just the four in Forrester’s report. Additional services include identity and access management, vulnerability assessment, SEIM and others.

In particular, Gartner said in a press release, SMBs are driving the growth in the market, as they are becoming “more aware of security threats.”

Gartner research director Ruggero Contu said cloud-delivered will continue to be a “popular choice for security practices.” The abilities to deploy, manage, update and monitor all through the cloud provide “significant value” for enterprises, saving them a lot of time and maintenance.