Frost Radar™: Security Service Edge, 2023

Frost Radar™: Security Service Edge, 2023

A Benchmarking System to Spark Companies to Action - Innovation that Fuels New Deal Flow and Growth Pipelines

RELEASE DATE
17-May-2023
REGION
Global
Research Code: K80D-01-00-00-00
SKU: IT04708-GL-MT_27678
AvailableYesPDF Download
$4,950.00
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SKU
IT04708-GL-MT_27678
$4,950.00
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Description

The SSE market is growing dramatically, but that growth will slow in the next few years. Expect continued year-over-year (YoY) growth above 25% for at least the next three years. Two mad rushes drive that growth: large enterprises pursuing secure cloud transformation to move from legacy hardware to a cloud ZTA, and medium enterprises upgrading from simple antivirus solutions to full-fledged cloud-delivered cybersecurity, typically via managed service providers (MSPs).

First-mover usual suspects (Zscaler, Netskope, and Palo Alto Networks) dominate the cloud-based SSE market, but it is splintering as traditional hardware security vendors (Fortinet, Broadcom, and Cisco) catch up. The early-mover SSE vendors poached customers from those hardware vendors, but the Fortinets and Ciscos of the world are transitioning their massive customer bases to cloud SSE offerings, which could freeze out the cloud-only players in the coming years.

Whither SSE? It’s fair to ask if SSE will remain an extant market category: The bulk of SSE sales in the past year have come as part of SASE (SSE + SD-WAN) adoption. Transformation to a SASE model gives enterprises an easier path to the cloud, letting them preserve some semblance of traditional networking, which is anathema to cloud-only vendors such as Zscaler or Skyhigh Security. For some vendors, the SSE-only play is in mid-market.
Customers are moving from point products to integrated, single-vendor SSE (or SASE) solutions. The move simplifies security administration: It’s easier/better to create business policy for a single, unified endpoint solution than for SSE products from multiple vendors.

Most SSE vendors successfully promote their services as a compelling replacement for legacy "castle-and-moat" hardware- based, network-perimeter security architectures. For the most part they are, and will remain so, but key SSE services—SWG, CASB, and ZTNA—risk becoming commoditized. There are, of course, ways to differentiate them: better-administered SWG, better-peered CASB, and better-secured ZTNA. Being able to offer all three is highly innovative relative to the status quo, but this is a market that yearns for differentiation: SSE vendors cluster in the 2023 SSE Frost Radar™. In the coming year, as the market and vendor service positioning messages mature, expect to see positions spread out.

Connectivity performance is the new black. Security remains the most important criterion for customers selecting an SSE solution, but traditional criteria (e.g., threat intel, data protection, and threat protection) are becoming commoditized, and table stakes in the SSE purchase process. In contrast, HPE Greenlake/Axis Security and Cato Networks push connectivity- performance-related differentiators such as number of points of presence (POPs), agility to deploy new POPs, and cloud networking infrastructure.

Table of Contents

Security Service Edge - 2023

  • Security Service Edge
The SSE market is growing dramatically, but that growth will slow in the next few years. Expect continued year-over-year (YoY) growth above 25% for at least the next three years. Two mad rushes drive that growth: large enterprises pursuing secure cloud transformation to move from legacy hardware to a cloud ZTA, and medium enterprises upgrading from simple antivirus solutions to full-fledged cloud-delivered cybersecurity, typically via managed service providers (MSPs). First-mover usual suspects (Zscaler, Netskope, and Palo Alto Networks) dominate the cloud-based SSE market, but it is splintering as traditional hardware security vendors (Fortinet, Broadcom, and Cisco) catch up. The early-mover SSE vendors poached customers from those hardware vendors, but the Fortinets and Ciscos of the world are transitioning their massive customer bases to cloud SSE offerings, which could freeze out the cloud-only players in the coming years. Whither SSE It’s fair to ask if SSE will remain an extant market category: The bulk of SSE sales in the past year have come as part of SASE (SSE + SD-WAN) adoption. Transformation to a SASE model gives enterprises an easier path to the cloud, letting them preserve some semblance of traditional networking, which is anathema to cloud-only vendors such as Zscaler or Skyhigh Security. For some vendors, the SSE-only play is in mid-market. Customers are moving from point products to integrated, single-vendor SSE (or SASE) solutions. The move simplifies security administration: It’s easier/better to create business policy for a single, unified endpoint solution than for SSE products from multiple vendors. Most SSE vendors successfully promote their services as a compelling replacement for legacy castle-and-moat hardware- based, network-perimeter security architectures. For the most part they are, and will remain so, but key SSE services—SWG, CASB, and ZTNA—risk becoming commoditized. There are, of course, ways to differentiate them: better-administered SWG, better-peered CASB, and better-secured ZTNA. Being able to offer all three is highly innovative relative to the status quo, but this is a market that yearns for differentiation: SSE vendors cluster in the 2023 SSE Frost Radar™. In the coming year, as the market and vendor service positioning messages mature, expect to see positions spread out. Connectivity performance is the new black. Security remains the most important criterion for customers selecting an SSE solution, but traditional criteria (e.g., threat intel, data protection, and threat protection) are becoming commoditized, and table stakes in the SSE purchase process. In contrast, Axis Security and Cato Networks push connectivity- performance-related differentiators such as number of points of presence (POPs), agility to deploy new POPs, and cloud networking infrastructure.
More Information
Industries Information Technology
No Index No
Is Prebook No
Keyword 1 Cloud-Based SSE Market
Keyword 2 Security Service Edge
Keyword 3 Edge Security
Podcast No
WIP Number K80D-01-00-00-00