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Cyber-security in the SMB market: survey of telecoms operatorsCyber security in the SMBmarket: survey of telecomsoperatorsIgor Babić and Tom Rebbeck
Cyber-security in the SMB market: survey of telecoms operators2About this reportThis report is based on a survey of 34 telecoms operatorsworldwide. The participants reflect a wide range of operator types,from small challengers to some of the largest incumbents. Therespondents know the market for security products well; most hadmore of an emphasis on selling security solutions than theaverage business telecoms operator.We asked the respondents about their security offerings for thesmall and medium-sized business (SMB) market (defined asorganisations with up to 1000 employees).The questions covered the security products sold, future productplans and vendor partners. We also asked respondents to ratesecurity vendors. Finally, we asked for suggestions on howvendors could improve.This report includes the results of the survey and our analysis ofthe outputs.All of the operators participated confidentially and their inputs areanonymous. We do not name any operators or their suppliers.K E Y Q U E S T I O N S A N S W ERE D I N T HI S R E P O RT What security products are operators currently selling to SMBs? What security products are operators planning to add to their portfoliosin the next 12 months? Which security vendors are operators working with? How do operators rate different security vendors overall, and in thefollowing areas: ease of doing business, pricing, portfolio and productquality? How can security vendors better address operators’ needs?W HO S H O UL D R E A D T HI S R E P O RT Security vendors’: strategy teams sales teams that target telecoms operators marketing divisions. Telecoms operators’: strategy teams product managers heads of enterprise/business/SME/SMB heads of security.
Cyber-security in the SMB market: survey of telecoms operators7Operator security portfolios: network security products are the most commonlyoffered, but many operators are planning to rapidly expand their portfoliosOperators most commonly offer network security products,thanks to their close link with connectivity services. Operatorsalso frequently offer web, email and endpoint securityproducts.Figure 2: Overview of telecoms operators’ current or plannedsecurity portfolios for SMBs, 2020 2Mobile security is offered by fewer operators than network orendpoint security. This is largely because seven of the operatorssurveyed only offer fixed connectivity, and some of the convergedoperators only have a limited mobile presence (for example, as anMVNO).A small number (three) of the operators surveyed also offerpenetration testing, and two offer SIEM and security operationscentre (SOC) services for SMBs.Most operators offer at least some of their security products aspart of a managed service.1A striking share of operators plan to add new security productsto their SMB portfolios in the next 12 months (more than 20%for certain solutions).Operators’ planned adoption of almost all security services is high(and as high as 32% for endpoint detection and response (EDR)and data loss prevention (DLP)). Even if these figures are overlyoptimistic for the next 12 months, they signal operators’ intent togrow their SMB security offerings.Network securityWeb and email securitySee the appendix for a breakdown of the results related to managed security services offered to SMBs by operators.Question: “Which of the following security solutions (or services) do you currently offer to SMBs (and plan to start offering toSMBs in the next 12 months)?”; n 34.12Endpoint securityOtherMobile securityData security
Cyber-security in the SMB market: survey of telecoms operators11Operator security revenue: the mid-market is an important revenue generator fortelecoms operators that sell security servicesThe mid-market (organisations with 100–999 employees) is asimportant as the large enterprise market for telecomsoperators that sell security services.Figure 5: Operator security revenue by customer size, 2020 2We asked operators to estimate the portion of their securityrevenue that comes from organisations of different sizes (Figure5). The results should be treated as a rough guide only, becausewe did not ask for exact figures. Furthermore, the respondentoperators may not be reflective of the broader market.The results suggest that the SMB market overall (that is,companies with fewer than 1000 employees), and the mid-marketin particular (100–999 employees), is a very important segmentfor operators, despite only accounting for less than 40% of thetotal security spend (according to our forecast).This emphasis on the mid-market makes sense for operators:they will often have a direct relationship with businesses in thismarket and will therefore not rely on channel partners. As such,operators are well-placed to promote other products.Furthermore, operators should be well-placed to serve midmarket customers that have requirements that are complex, butnot so complex that bespoke solutions with extensive professionalservices are needed.11 For more discussion on this point, see Analysys Mason’s Security and the mid-market: how telecoms operators can launch aproposition. 2 Question: “Thinking only about your security revenue from business customers, roughly what portion comes fromorganisations of the following types? ”, n 31.
Cyber-security in the SMB market: survey of telecoms operatorsContentsExecutive summaryTelecoms operators’ security portfolios and vendor partnershipsSecurity vendor ratingsAreas of improvement for security vendorsAppendixPanel information and questionnaireAbout the authors and Analysys Mason
Cyber-security in the SMB market: survey of telecoms operators37About the authorsIgor Babić (Analyst) is a member of Analysys Mason's Operator business services and IoT research practice and is mainly focusing on marketforecasting and enterprise research commentaries. Prior to joining Analysys Mason, he completed a BEng in Engineering Business Managementat Warwick and an MPhil in Industrial Systems, Manufacture and Management at Cambridge.Tom Rebbeck (Partner, Research) leads Analysys Mason’s Operator business services and IoT research practice drawing on more than 18years of experience in the telecoms sector. He is based in our London office, but works for clients worldwide. Tom is a specialist on the Internetof Things (IoT) and other enterprise services and has written widely on the role for operators as telecoms markets develop. As well as publishedresearch, he has worked on projects for a range of clients – including operators, regulators, industry bodies and vendors. Many of theseprojects have been supported by original research, such as expert interviews and customer surveys.
Cyber-security in the SMB market: survey of telecoms operators38Analysys Mason’s consulting and research are uniquely positionedAnalysys Mason’s consulting services and research portfolioConsultingWe deliver tangible benefits to clients across the telecomsindustry: communications and digital service providers, vendors,financial and strategic investors, private equity andinfrastructure funds, governments, regulators, broadcastersand service and content providersOur sector specialists understand the distinct local challengesfacing clients, in addition to the wider effects of global forces.We are future-focused and help clients understand the challengesand opportunities new technology brings.ResearchOur dedicated team of analysts track and forecast the differentservices accessed by consumers and enterprises.We offer detailed insight into the software, infrastructure andtechnology delivering those services.Clients benefit from regular and timely intelligence, and directaccess to analysts.
Cyber-security in the SMB market: survey of telecoms operatorsResearch from Analysys Mason39
Cyber-security in the SMB market: survey of telecoms operatorsConsulting from Analysys Mason40
Cyber-security in the SMB market: survey of telecoms operatorsPUBLISHED BY ANALYSYS MASON LIMITED IN OCTOBER 2020Bush House North West Wing Aldwych London WC2B 4PJ UKTel: 44 (0)20 7395 9000 Email: research@analysysmason.com www.analysysmason.com/research Registered in England and Wales No. 5177472 Analysys Mason Limited 2020. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means – electronic,mechanical, photocopying, recording or otherwise – without the prior written permission of the publisher.Figures and projections contained in this report are based on publicly available information only and are produced by the Research Division of Analysys Mason Limited independently of anyclient-specific work within Analysys Mason Limited. The opinions expressed are those of the stated authors only.Analysys Mason Limited recognises that many terms appearing in this report are proprietary; all such trademarks are acknowledged and every effort has been made to indicate them by thenormal UK publishing practice of capitalisation. However, the presence of a term, in whatever form, does not affect its legal status as a trademark.Analysys Mason Limited maintains that all reasonable care and skill have been used in the compilation of this publication. However, Analysys Mason Limited shall not be under any liability forloss or damage (including consequential loss) whatsoever or howsoever arising as a result of the use of this publication by the customer, his servants, agents or any third party.
KEY QUESTIONS ANSWERED IN THIS REPORT About this report 2 This report is based on a survey of 34 telecoms operators . Cyber-security in the SMB market: survey of telecoms operators PUBLISHED BY ANALYSYS MASON LIMITED IN Bush House North West Wing Aldwych London WC2B 4PJ UK Tel: 44 (0)20 7395 9000 Email: research .
