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According to Infonetics Research's latest Cloud and CPE Managed Security Services report, the global cloud and CPE managed security service market grew by 12 percent from 2011 to 2012, reaching $13 billion.
While the majority of security service revenue in 2012 came from CPE-based services, the report predicts that by 2017, CPE revenue will drop significantly to just 50 percent of total revenue.
In the meantime, Infonetics predicts that sales of cloud-based security services will grow by 69 percent over the next five years. The research firm anticipates that "other security services," such as hosted DDoS services, will comprise more than 20 percent of cloud-based security service revenue by 2017.
"Buyers are moving to managed security services to deal with increased attack volume and complexity, manage security product sprawl, deliver consistent security for a distributed workforce and device population, and provide security for cloud infrastructure," Jeff Wilson, principal analyst for security at Infonetics Research, said in a statement. "Manufacturers and service providers are developing more mature offerings to build out and deliver managed security to customers, and the net result is the market continues to enjoy healthy overall growth, with particularly strong growth for cloud-based services."