Frost & Sullivanís recent cloud computing research, A Strategic Analysis of the ANZ (Australia, New Zealand) Security as a Service Market, highlighted the rapid growth of Australiaís security-as-a-service market at 17.2 percent in 2011 and is valued at $38.4 million. The growth is said to be driven by relocation of in-house software and the introduction of the cloud to small businesses. It is projected to post a 16.6 percent compound annual growth rate up until 2016, and will be valued at $83 million.
Seventy-two percent of cloud computing users in Australia make use of software-as-a-service. Australia is the top cloud consumer worldwide and the largest market in the Asia Pacific region in terms of revenues.
The notable shift to security-as-a-service was largely driven by businesses that want to identify IT expenditures as managing costs instead of investments. This enables companies to properly manage monthly budget and additional benefits like lower initial costs, proper monitoring, flexibility, and accessibility.
Another factor that had driven the shift to security-as-a-service is lack of local IT experts. The security-as-a-service model eliminates these issues by means of global labor arbitrage, relying on service providers to be more responsible in the maintenance and security of each account. Businesses are also inclined to use security-as-a-service because of its capabilities, ease of use, and security.
The banking, financial, and insurance (BFSI) industry is the largest sector that uses security-as-a-service from the cloud.
Even if the market is growing, organizations still doubt the security and control of data by third party service providers. Potential clients are also concerned about delays. Technologically speaking, the points of network connections are farther from each end, which means it may take much longer to transfer data.