Viruses, worms, and spam fuel security software market in the Gulf States in 2003

According to a new IDC study, viruses, worms, and spam are widely considered to be the largest security threats to businesses in the Gulf, and secure content management applications dominate the market. Moreover, IT maturity, security awareness, and security adoption rates vary considerably across the region, which has created discrete IT security markets where holistic implementation often takes a backseat to specific threats.

"Organizations are nevertheless beginning to take a more proactive approach to IT security," says Heini Booysen, Senior Analyst, IDC CEMA's Software Group. "With more businesses conducting transactions online or via email, continuity has become essential as disruption can result in substantial losses. In the long term, this should translate into approaches that adopt a strategic path rather than an ad-hoc path to implementation of security solutions."

Saudi Arabia and the United Arab Emirates ranked first and second in terms of overall investments in security software in the Gulf in 2003. This reflects both their size and their relative level of IT development -- Saudi Arabia has the largest population base and has recently been instituting various IT and ecommerce initiatives; the UAE is one of the most technologically advanced countries in the region. Together, these two nations accounted for more than three quarters of the market last year, with the rest of the region's countries covered in IDC's study (Bahrain, Kuwait, Oman, and Qatar) comprising the rest.

As mentioned, secure content management (SCM) dominated the IT security market of the Gulf States in 2003, accounting for more than 60% of total revenue. This figure will drop to just over 44% this year as demand for other security measures picks up speed. Intrusion detection and vulnerability assessment came second, firewall and VPN third, and 3A (authentication, administration, authorization) fourth. "But this doesn't mean SCM is going anywhere soon," says Booysen. "It will continue to account for the largest share of the market for the foreseeable future."

Symantec and Network Associates together accounted for more than 48% of spending on IT security software in the Gulf States in 2003. Nevertheless, the market was relatively diffuse, with more than 25 vendors competing for market share. "Although the market is expanding," says Booysen, "vendors need to get actively involved in educating both channel partners and clients, especially if they want to inform users on the benefits of adopting holistic solutions. Also, as the market matures, consolidation is inevitable, and vendors that plan accordingly will have a competitive advantage."

IDC's Gulf States Security Software 2004-2008 Forecast and 2003 Vendor Share presents the security software market in the Gulf States for 2003 and forecasts expenditure on security software applications through 2008. The study contains market size, vendor market shares, and forecasts for five discrete market categories. It also ranks the major security software providers by their 2003 revenue, and includes a profile of their activities and presence in individual country and vertical markets. The study answers the following questions: What is the size of the security software market in the Gulf States? Which security software segments are most important? What is the current focus of spending and how will it change? Who are the market leaders and what are their strengths, weaknesses, and strategies for the future? Which industry sectors are and will be most important for demand?