Light Reading Insider Releases Managed Security Services Report NEW YORK, June 8 /PRNewswire/ -- Managed security services (MSS) are the hottest ticket to high-margin, recurring profit for telecom providers, according to a new report from Light Reading Insider (http://www.lightreading.com/insider), the subscription research service of Light Reading. Entitled "Managed Security Services: The Safe Bet," the report finds that intrusion prevention and denial-of-service prevention will dominate new service launches in the next 12 months. It examines the security services offered by ten major service providers -- including managed firewalls, intrusion detection and prevention, DOS prevention, content scanning, Web filtering, and more -- and analyzes the vendors best positioned to meet their requirements. "Managed security service providers can deliver better intrusion and denial-of-service prevention than enterprises can achieve in-house, because outsourcing can be more efficient and in some circumstances more responsive," says Insider research analyst Daro Clark. Clark finds that network-based systems allow MSSPs to provide a "clean pipe" to the customer and provide early warning of attacks. But detection and alerts are no longer enough for major enterprises: "They want guaranteed uptime backed by rebates from their providers." Key findings include: * Many MSSPs expect to double their revenue in 2004 and report CAGRs of higher than 40 percent. * The reluctance of enterprises to outsource is waning as requirements for data security increase and the cost of in-house IT security staff rises -- by up to 30 percent a year, in some cases. * Managed firewalls are the most commoditized MSS services and are prone to price declines. Some MSSPs counter 5 percent annual price declines by adding service features. * Shared, network-based services offer cost savings of up to 25 percent over other CPE-based services and widen the addressable MSS market to incorporate SMB users. * AT&T and MCI have the most aggressive MSS development strategies and have launched penalty-based intrusion prevention services. Private vendors analyzed in this report: Arbor Networks Inc., Fortinet Inc., Procera Networks Inc., Quarry Technologies Inc., and TippingPoint Technologies Inc. Public vendors analyzed in this report: Check Point Software Technologies Ltd. (NASDAQ:CHKP), Cisco Systems, Inc. (NASDAQ:CSCO), CoSine Communications Inc. (NASDAQ:COSN), Juniper Networks Inc. (NASDAQ:JNPR), Internet Security Systems Inc. (NASDAQ:ISSX), Network Associates Inc. (NYSE:NET), and Nortel Networks Ltd. (NYSE/Toronto: NT). Private services providers analyzed in this report: TruSecure Corp. Public service providers analyzed in this report: AT&T Corp. (NYSE:T), BT Group plc. (NYSE:BTY) (LONDON: BTA) , Equant (NYSE: ENT; Paris: EQU), IBM Corp. (NASDAQ:IBM), Infonet Services Corp. (NYSE:IN), MCI Inc. (NASDAQ:WCOEQNASDAQ: MCWEQ), SBC Communications Inc. (NYSE:SBC), Siemens Information and Communications Networks Inc. (NYSE: SI; Frankfurt: SIE), and VeriSign Inc. (NASDAQ:VRSN). The report is available as part of an annual subscription to the monthly Light Reading Insider, which is priced at $1,350. The subscription includes 12 monthly reports covering the hottest wireline equipment and services markets. Individual reports are available for $900. To subscribe, or for more information, please visit our newly redesigned Website at: http://www.lightreading.com/insider. Sales contact: Dave Williams Sales Director Light Reading Insider 415-293-8470 Press contact: Laura West Outbound Marketing Director Light Reading Insider 212-925-0020 ext. 105 DATASOURCE: Light Reading Insider CONTACT: Sales - Dave Williams, Sales Director, +1-415-293-8470, , or Press - Laura West, Outbound Marketing Director, +1-212-925-0020, ext. 105, , both of Light Reading Insider Web site: http://www.lightreading.com/

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