Cyber Security Service Provider Landscape in Europe

The cyber security market is highly dynamic. This is true from a technology perspective and a demand perspective. User organizations are implementing their digital strategies, opening their perimeters to clients, partners, and suppliers. To do so securely, cyber security solutions need to be adapted. As internal staff is scarce and the market for cyber security experts is tight, there is significant growth in demand for security services. The selection of a suitable provider is a challenging task.

Our vendor landscape aims to facilitate this by providing an overview of security service providers’ positioning in different segments, such as:

• Security services – managed security services and security outsourcing, incl. SOCs;
• Security consulting and system integration – all consulting services, from strategy consulting to vulnerability and penetration tests, and all system integration projects;
• Telcos – a particular type of services provider, usually providing consulting and system integration as well as managed security services and outsourcing in combination with connectivity services;
• IT security software vendors – are only relevant in this landscape if they provide additional services ; this is a relatively recent trend, as some security software vendors have started to offer standardized managed services based on their solutions;
• Industrial security – in the wake of initiatives such as smart factories and IIoT, OT security is gaining in importance as smart factories and IIoT require secure integration between IT and OT.

The cyber security service provider landscape in Europe consists of 98 players. Some are international companies with operations in Europe, others are Europe-based companies. Some are highly specialized, others follow an end-to-end approach.

In addition to these 98 pan-European providers, PAC has identified 30 local heroes, i.e., providers that are relevant in individual regions of Europe.

PAC’s recommendations for IT providers:

• IT consulting firms should consider offering managed services.
• OT security is gaining in importance in most digitalization strategies. An integrated offering is attractive for many user organizations.
• Having business-specific and industry-specific expertise can help IT and OT security providers reinforce their position in the market.
• Many user organizations are looking to simplify the management of their cyber security partners. That is why having an extensive partner ecosystem, including start-ups, and positioning as a one-stop-shop provider may bring substantial benefits for IT service providers.
• With the growing number of attacks, cyber security has become a strategic priority for many midsize businesses, so having a dedicated, affordable offering and knowledge about available government subsidies may be a real differentiator in the market.
• Security software vendors should consider managed services based on their solutions to support user organizations. Small and midsize companies, in particular, find such offerings attractive.
• OT security providers should extend their offerings to include IT security for OT-intensive customer groups.

PAC’s recommendations for IT users:

• As risk surfaces grow with digital strategies and the labor market for security experts has dried up, it is essential to select a suitable services provider that meets current and future needs.
• When doing so, make sure that you have the in-house talent required for provider management and security strategy.
• The security strategy must not be wholly outsourced, as the definition of a suitable strategy requires internal knowledge unavailable in the market.
• Make sure that IT security and OT managers develop an effective working relationship; otherwise, any attempt to securely integrate IT and OT will fail.
• Reduce the number of security software and service vendors as much as possible, as this reduces the complexity of security operations and provider management.

Find out more in my recent Market InBrief report “Cyber Security Service Provider Landscape in Europe”. If you want to share your feedback or personal experience, please leave a comment or drop me an e-mail.