Indian security software market to grow at 36 percent CAGR

The Indian security software market is poised for a healthy growth of 36
percent in the coming years–from Rs 105 crore in 2003 to Rs 481 crore by 2008.
According to IDC estimates, while secure content management wo-uld grow at a
CAGR of 38 percent during this per-iod–up from Rs 46 crore in 2003 to Rs 228
crore in 2008, security 3A software would post the highest 42 percent growth
moving up from Rs 24 crore to Rs 137 crore during the period.

Firewall and VPN soft-ware is expected to jump 33 percent, from Rs 19 crore
to Rs 79 crore, whe-reas intrusion detection software would move from Rs 14
crore to Rs 36 crore posting a 20 percent growth.

"Growing adoption of Web-enabled applica-tions coupled with increasing
number of incidences of security breaches will drive spend on security
solutions," said Kapil Dev Singh, Cou-ntry Manager, IDC India.

However, on the security preparedness front, the recent IDC survey across 45
odd Indian enterprises throws up few interesting facts. Vast majority of the
organizations sees security as a technology deployment, rather than a serious
business issue. This is quite evident in the fact that close to 70 percent of
the organizations have security coming under their IT department rather than
giving a top mana-gement or a risk management drive to it.

"Since Indian organizations are just opening up in terms of Web-enabled
applications which integrate them with their part-ners and customers, the
experie-nce of business loss on account of security attack is not very
high," Singh added.

The survey reveals that the maximum impact suffered by 76 percent of the
organizations has been non-availability of the mail system. However, only eight
per-cent of the enterprises reported implications in terms of absolute financial
losses. The survey result also highlights lower level of process maturity with
respect to security approach–60 percent of the companies reported that the
policy is not reviewed and measured regularly.

The survey also reveals that very few compa-nies considered ‘potential
revenue impact’ or ‘potential liability and exposure’ as the key reason to
justify their security spends.

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