Cloud computing a boon to security vendors
According to research firm MarketsandMarkets, trends like BYOD (bring your own device) and IoT (Internet of Things) are driving the adoption of cloud computing and cloud security.
Cloud platform providers Amazon (AMZN), Microsoft (MSFT), and Alphabet’s (GOOGL) Google are enjoying strong demand for cloud computing services. However, the rise of the cloud security market is a boon to cybersecurity vendors like Symantec (SYMC), FireEye (EYE), and Proofpoint (PFPT).
$12.7 billion in cloud security revenues
MarketsandMarkets estimates that by 2022, the cloud security market could grow to more than $12.7 billion in revenues, up from $4.1 billion in 2017, as illustrated in the chart above. The online and email security segment is expected to be the largest piece of the cloud security market as organizations step up efforts to secure points of potential vulnerability.
By acquiring Israel-based browser protection firm Fireglass earlier this year, Symantec improved its prospects in the cloud security market—a multibillion-dollar revenue opportunity.
Fireglass was founded in 2014 by executives who had worked with companies like Check Point Software Technologies (CHKP) and Microsoft (MSFT). Fireglass secures devices from potential malware threats via the Web or email. With Fireglass security, a device is protected from threats hidden in browsers or emails even if it doesn’t have endpoint antivirus software.
Symantec, which exited the June quarter with more than $2.3 billion in cash, didn’t disclose how much it spent to bring Fireglass under its wing. The Haaretz newspaper of Israel reported that Symantec may have paid about $250 million for the acquisition.