While Dependency of Organizations Shifts towards In-house Cybersecurity Professionals
A major overhaul of data security led by stringent regulatory mandates has caused a meteoric rise in the adoption of data protection tools. Every enterprise dealing with consumer data has to abide by data security laws and establish compliance. While organizations are fixated to establish a trade-off between performance, agility and data security, the current marketplace of data protection software is gaining a stronghold in cloud management and cybersecurity.
Data being at the center stage of the ongoing digitalization, data privacy has become of utmost importance and a significant rise in the number of organizations complying with data protection regulations post-GDPR is evident. In addition, growing reliance on Cloud to handle the ever-increasing pile of data presents unique challenges of data privacy wherein organizations fail to deliver transparency in data storage and processing.
Data protection software has become a reliable weapon of all data dependents to effectively address these challenges while maintaining the business ROIs. As more and more businesses use IT infrastructure to streamline production and stand out in the market, data protection software is playing a pivotal role across industry verticals ranging from back office to product offerings.
Among the two types of services provided by vendors, managed services are highly preferred by organizations working in extensive and divergent IT environment. While larger organizations continue to take the aid of managed services owing to their all-inclusive solution of data protection, small and medium businesses dealing with consumer data present specific data protection challenges, which may not need the full spectrum services offered in managed services.
Professional Data Protection Services Picking Up; Hegemony of Managed Services Unaltered
While managed services are here to stay, adoption of professional services is picking up for their dedicated and on-demand data protection solutions. In particular, organizations with small IT infrastructure and those opting for a temporary software transition or cloud migration are highly likely to look for a cost-effective solution to address the challenges of data storage, backup and recovery.
A ubiquitous penetration of SaaS across all size of enterprises explains the increasing dependency of businesses on the cloud for managing data services. Further, SaaS providers’ insufficiency in delivering complete data restore solutions has generated an urgent need for SaaS data backup solutions.
Professional data protection services have efficiently addressed these immediate challenges of data backup, restore and security at competitive pricing. As data security remains at the top of the mind of all businesses, professional services are spearheading the data protection market. According to Fact.MR, professional services in the data protection software market are estimated to grow over 4x in 2028 over 2017 and generate revenues worth US$ 5 billion by 2028.
Along with growing reliance on SaaS and data privacy regulation such as GDPR, increasing incidences of ransomware attack has further intensified the need for comprehensive solutions of data protection and compliance.
Preference for In-house Cybersecurity Solutions on the Rise
As enterprises become more astute in protecting their data, hackers continue to adopt shrewd ways of data breaching. Not only third-party hackers but organizations also faced challenges of malicious acts of employees.
As cybersecurity has become an elephant in the room, increased data breaching has led organizations to rethink their data management strategies in a bid to avoid heavy penalties. In addition, under regulations such as GDPR, a notice period of 72 hours for reporting details of data breach demands faster and efficient cybersecurity solutions.
Cybersecurity platform has been dominated by third-party providers wherein outsourcing of services is usually preferred. While small organizations continue to look for cost-effective ways to manage their IT-environment, sharing of data to third-party vendors in outsourced services poses unique challenges of cyber-attacks.
Adoption of in-house cybersecurity services is gaining traction for their approach to quickly respond to the client in the aftermath of a data breach over outsourced cybersecurity services. Further, with the more aggressive and challenging nature of cyber breaches, the responsibility of in-house cybersecurity professionals increases to mitigate the damage to organizational reputation.
As data security is becoming pivotal for corporate ROI and market reputation, the importance of in-house cybersecurity solutions in data protection and management is growing exponentially.
All in all, digital economy, tightening data privacy regulations and growing emphasis on cybersecurity are propelling the investments in data protection software market, which are expected to generate market revenues over US$ 9 billion in 2018, according to Fact.MR. As SMEs and large businesses increasingly rely on IT-driven business growth and take the aid of cloud platforms in managing data-inventory, demand for reasonably priced data protection solutions is likely to augur well for professional data protection services in the future.
The insights presented here are from a research study on Data Protection Software Market by Fact.MR.
By Santosh Kumar