The global cloud security market in the retail sector will experience robust growth between 2017 and 2020, posting a Compound Annual Growth Rate (CAGR) of almost 21% by 2020. In terms of geography, the Americas will account for more than 49% shares of the global cloud security market in the retail sector by 2020 .
Technavio says its market research analysis reveals the increasing need to reduce the total cost of ownership (TCO) as one of the primary growth factors for the cloud-based security market. In conventional on-site software, TCO includes the costs for software implementation, software licensing, and also the high maintenance cost.
Whereas in cloud services, vendors are responsible for software maintenance, backup, implementation, and regular updates, which substantially reduces operational costs by eliminating the need for IT personnel. Cloud security software is based on the pay-per-use model where customers pay according to their use of services. Also, it offers a wide range of connection options and eliminates the need for any connection-related expenditure.
The constantly changing business scenarios will induce organizations to develop a mobile workforce to stay competitive in the market.
This will increase the need for flexible IT services. Also, the changes in work locations, time zone barriers, and the need to access official and confidential data from remote locations will increase the adoption of cloud services. As a result, IT service providers will start providing customized cloud services for mobile devices such as smartphones and tablet computers, which in turn, will demand the need for advanced cloud security solutions.
The market is characterized by the presence of several well-diversified regional and international cloud security vendors. As the international players are increasing their foothold in the market, the regional vendors are finding it difficult to compete with them. The coming years will also witness established cloud security vendors acquiring smaller vendors to improve their product portfolio and also increase their share of the market. Leading cloud security providers will also invest in their R&D to develop cloud-based security tools with features such as access control and strong device security, which will help them gain a competitive edge over their competitors.
The leading vendors in the market are - • Cisco • IBM • Intel (McAfee) • Symantec • Trend Micro
The other prominent vendors in the market are CA Technologies, Check Point Software Technologies, CipherCloud, Clearswift, CloudPassage, CSC, Dell Secure Works, Fortinet, Microsoft, Netskope, Okta, SafeNet, Sophos, Symplified, and Zscaler.