The market for IT security software and services remains strong, according to two separate reports released today.
Frost and Sullivan said that the Australian market for network security products was worth an estimated US$187.4 million in 2008, up four per cent from the year prior.
The analyst group expects the market to grow at a further 5.3 per cent in 2009.
"Most companies recognise that the risks of not implementing adequate IT security far outweigh the cost of investing in it," said Frost & Sullivan Industry Manager Arun Chandrasekaran.
Chandrasekaran said the current economic turmoil is pushing customers towards converged and managed security services.
"Adoption of managed security services is expected to rise as companies try to minimise outright purchases," he said.
Banking, financial services and insurance companies represent the biggest buyers of network security products and services in the Asia Pacific region, according to the Frost and Sullivan report - representing 20.8 per cent (US$377 million) of network security spend in 2008.
"Following the loss of public confidence in the banking system after the financial debacle of September 2008, the last thing any CIO would want is a security breach to further dent the confidence of existing and potential customers," Chandrasekaran said.
Service providers and the Government sector were also big spenders - each representing around 18 per cent of the total spend (US$333 million).
Frost and Sullivan expects the Australian market for network security to grow at a compound annual growth rate of 4.3 per cent from 2009 to 2015, to reach gross revenues of US$252.2 million by the close of 2015.
Software also strong
A separate report released by analyst group IDC today found that one third of CIOs in the region expect to increase their spend on infrastructure software over the next 18 months.
Two-thirds of these respondents named security software as the area in which they'll be spending.
"IDC expects greater regulatory intervention from government authorities to drive corporate governance in organisations and re-establish confidence in the markets," said Tim Dillon, associate vice president of research at IDC Australia.
"As a result, spending on security software among businesses will also increase."
IDC will be discussing the findings of the survey at its SecurityVision Conference on June 17 at Sydney's Westin Hotel.