Light Reading Insider Releases Managed Security Services Report

Light Reading Insider Releases Managed Security Services Report



NEW YORK, June 8  /PRNewswire/ -- Managed security services (MSS) are the
hottest ticket to high-margin, recurring profit for telecom providers,
according to a new report from Light Reading Insider
(http://www.lightreading.com/insider), the subscription research service of
Light Reading.

Entitled "Managed Security Services: The Safe Bet," the report finds that
intrusion prevention and denial-of-service prevention will dominate new service
launches in the next 12 months. It examines the security services offered by
ten major service providers -- including managed firewalls, intrusion detection
and prevention, DOS prevention, content scanning, Web filtering, and more --
and analyzes the vendors best positioned to meet their requirements.

"Managed security service providers can deliver better intrusion and
denial-of-service prevention than enterprises can achieve in-house, because
outsourcing can be more efficient and in some circumstances more responsive,"
says Insider research analyst Daro Clark.

Clark finds that network-based systems allow MSSPs to provide a "clean pipe" to
the customer and provide early warning of attacks. But detection and alerts are
no longer enough for major enterprises: "They want guaranteed uptime backed by
rebates from their providers."

  Key findings include:

   * Many MSSPs expect to double their revenue in 2004 and report CAGRs of
     higher than 40 percent.

   * The reluctance of enterprises to outsource is waning as requirements
     for data security increase and the cost of in-house IT security staff
     rises -- by up to 30 percent a year, in some cases.

   * Managed firewalls are the most commoditized MSS services and are prone
     to price declines. Some MSSPs counter 5 percent annual price declines
     by adding service features.

   * Shared, network-based services offer cost savings of up to 25 percent
     over other CPE-based services and widen the addressable MSS market to
     incorporate SMB users.

   * AT&T and MCI have the most aggressive MSS development strategies and
     have launched penalty-based intrusion prevention services.



Private vendors analyzed in this report: Arbor Networks Inc., Fortinet Inc.,
Procera Networks Inc., Quarry Technologies Inc., and TippingPoint Technologies
Inc.

Public vendors analyzed in this report: Check Point Software Technologies Ltd.
(NASDAQ:CHKP), Cisco Systems, Inc. (NASDAQ:CSCO), CoSine Communications Inc.
(NASDAQ:COSN), Juniper Networks Inc. (NASDAQ:JNPR), Internet Security Systems
Inc. (NASDAQ:ISSX), Network Associates Inc. (NYSE:NET), and Nortel Networks
Ltd. (NYSE/Toronto: NT).

Private services providers analyzed in this report: TruSecure Corp.

Public service providers analyzed in this report: AT&T Corp. (NYSE:T), BT Group
plc. (NYSE:BTY) (LONDON: BTA) , Equant (NYSE: ENT; Paris: EQU), IBM Corp.
(NASDAQ:IBM), Infonet Services Corp. (NYSE:IN), MCI Inc. (NASDAQ:WCOEQNASDAQ:
MCWEQ), SBC Communications Inc. (NYSE:SBC), Siemens Information and
Communications Networks Inc. (NYSE: SI; Frankfurt: SIE), and VeriSign Inc.
(NASDAQ:VRSN).

The report is available as part of an annual subscription to the monthly Light
Reading Insider, which is priced at $1,350. The subscription includes 12
monthly reports covering the hottest wireline equipment and services markets.
Individual reports are available for $900.

To subscribe, or for more information, please visit our newly redesigned
Website at: http://www.lightreading.com/insider.

   Sales contact:
   Dave Williams
   Sales Director
   Light Reading Insider
   415-293-8470
   

   Press contact:
   Laura West
   Outbound Marketing Director
   Light Reading Insider
   212-925-0020 ext. 105
   

DATASOURCE: Light Reading Insider



CONTACT:  Sales - Dave Williams, Sales Director, [phone],

, or Press - Laura West, Outbound Marketing

Director, [phone], ext. 105, , both of Light

Reading Insider



Web site:  http://www.lightreading.com/ 

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