SaaS-Based Network Security Drives $1.2 Billion in Q3 2021 Revenue – Report
Spikes in ransomware and malware attacks are likely keeping CISOs up at night, but the network security market is resting quietly as it benefits from increased demand for cybersecurity services in Q3 2021.
Software-as-a-service (SaaS)-based network security revenue, which includes cloud email security, secure web gateway (SWG) and web application firewalls (WAF), grew 26% year-over-year to $1.2 billion in Q3 2021, according to a recent report from Dell’Oro Group.
“The growth this quarter reflects an uncommon alignment between enterprise IT teams demanding more investment in security and business leaders willing to do so,” said Mauricio Sanchez, research director, network security at Dell. ‘Oro Group, in a statement.
The potential impact of cybersecurity threats on businesses is becoming increasingly troublesome as malicious actors have started to team up to share their “best practices” in deploying ransomware, for example. In a recent Light Reading podcast, Bruce Snell, Vice President of Security Strategy and Transformation at NTT Security, discussed a disconcerting new trend: the ransomware-as-a-service market.
“Year after year [ransomware attacks] becomes a bigger problem,” Snell said. “What worries me the most is the development of the ransomware-as-a-service market, and I think that’s going to cause us the most problems moving forward. before.”
In this episode of The Light Reading podcast, NTT’s Bruce Snell covers some of the biggest cybersecurity trends of 2021 and shares tips on how organizations can better manage and secure their data.
These new security threats, the shift of enterprises to the cloud, and pent-up demand for security services are among the drivers driving the SaaS-based network security market, according to Dell’Oro. This market has also “largely overcome the supply chain chaos affecting other markets as sellers deftly maneuver to meet demand,” the research firm said.
Additionally, SaaS-based SWG revenue grew 35% YoY in Q3 and will likely exceed $2 billion in revenue for 2021. Dell’Oro notes that SWG now has a new moniker – Secure Service Edge (SSE) – which is an abbreviated version of Gartner’s Secure Access Service Edge (SASE) term that defines the convergence of networking and security services.
Revenue from physical firewall appliances also grew 14% year-over-year in the third quarter and is expected to reach $10 billion in 2021.
“While spending for the more modern Secure Access Service Edge (SASE) and Zero Trust approaches has skyrocketed, even those for the more traditional perimeter firewall have seen healthy growth,” Sanchez said.
—Kelsey Kusterer Ziser, Managing Editor, Light Reading