According to the latest state-of-the-industry report from Information Services Group (ISG), Europe’s demand for IT and business services fell in the third quarter, with managed services down 2% and XaaS dropping 8% compared to the prior year. Managed services ACV reached an all-time high in the previous quarter but decreased by 17% sequentially. The report also highlights declines in IT outsourcing and infrastructure-as-a-service (IaaS), while business process outsourcing (BPO) and software-as-a-service (SaaS) saw growth.
According to Cato Networks’ 2023 SASE Adoption Survey, 82% of IT leaders worldwide are driving the convergence of networking and security teams within organizations. This trend aims to improve collaborations and operational efficiencies, with 24% of organizations already handling network and security responsibilities with one unified team. The survey also highlights occasional collaboration difficulties and a preference for a single, shared platform for security and networking management.
Small- and medium-sized businesses (SMBs) face a high degree of cyber risk, with 48% of companies experiencing an incident in the past year, according to research commissioned by Sage. Three-quarters of SMBs in the U.S. consider cybersecurity a significant concern, and 59% plan to increase investments in cybersecurity.
Why do we care?
SMBs seek help from cybersecurity specialist companies and industry organizations for managing cyber risk and education and training on cyber risk management. That’s called services.
The decline in Europe’s managed services and XaaS markets signals a potential trend that could influence global market dynamics. Could.
The data from Cato Networks highlights an industry-wide shift toward a unified approach to networking and security, suggesting a demand for bundled or integrated services… and importantly, a convergence of this Managed Service Provider and Managed Security Services Provider. Leaders don’t want the distinction, and security just needs to be part of the offer.