1. © PAC
Show me the money!
Evaluating Market Opportunities in Cyber Security
2014
PAC Webinar

2. © PAC 2014Show me the Money! - The Market Opportunity in Cyber Security
Your questions are
welcome!!
Duncan Brown
Director, Cyber Security
PAC UK
Mathieu Poujol
Principal Consultant
Cyber Security &
Infrastructures
PAC Group
Today’s Presenters
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Scope definitions
PAC definition: Cyber security is defined as technology, services and policies
that protect public sector and commercial organizations from the risk of
electronic attacks in order to minimize business disruption.
Cyber security is mostly an infrastructure- and middleware-based market,
but it impacts all ICT systems, from network to business applications.
2014Show me the Money! - The Market Opportunity in Cyber Security3

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Cyber security market segments
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Cyber security segments
The is no digital economy without digital trust

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Market size
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Total Security IT Services and Software Market Size 2013 and Growth Trends 2013-2017
1.7bn
1.7bn
1.4bn
+8.4%
+8.5%
+6.5%
+7.0%
Some Territories by Market Size Some Territories by Growth
All figures in Euros
31.5bn
12.1bn
8.8%
Worldwide Market Size Worldwide Market Growth

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Main trends
● The advent of the digital economy around cloud and mobility has boosted a softer, more
open IT security perimeter.
● The need of a holistic and converged approach across all IT area.
● The core, the critical part of the IT systems, needs to be hardened:
ü The coconut has to give way to the mango.
● Security needs to focus more strongly on the data and business side than on IT
infrastructures, as was the case before.
● Infrastructure security remains mandatory.
● Global security governance to master complexity
● The market is maturing fast, from a specialist-driven approach to a more generalist
approach.
● Government actions and investment are critical in this market.
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boosters
The economy &
discretionary spend
Skill
shortages
New technologies &
deperimeterisation
Regulation &
compliance
Increasing threat
landscape
!"
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$ £ ¥ € ¢
Fragmented
legislation
Market dampers

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Market players
Local specialistsIT services generalists Defence contractors
Technology vendorsConsultancies Telecoms specialists8

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Is security too hard for CISOs?
● Manage the increasing complexity of business and IT systems
● Complexity of the threat landscape, too many solutions, more
attacks that are more complex etc.
● Lack of resources constraining budget and efficiency
● Increasing pressure from businesses, regulators and governments
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Market implications
Rate of
adoption
Show me the Money! - The Market Opportunity in Cyber Security
Integrated security solutions
Managed services
20182013 2014 2015 2016 2017
Data-led governance
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Security services market structure
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Managed security services
Discrete C&SI security projects
Advisory services (GRC, technology trends, etc.)
Cloud-based security services (Syaas)
Embedded C&SI security input

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Growth opportunities – services
Position cyber security at the heart of your offerings
• It’s not a nice-to-have
• It’s an enabler for SMAC, DT, and compliance
• Top-down approach: from risk to vulnerabilities to tools
Offer an integrated suite of products that provide a
comprehensive view of security posture
• Multiple software vendor partnerships are inevitable – today
• You’ll probably have to do the integration yourself
• Security is part of a bigger picture that contains business
continuity and risk management
Cyber security is not an isolated silo
• Asset and system management
• From business to infrastructure
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Growth challenges – services
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Achieve scale quickly – eat or be eaten
• M&A is firmly on the agenda
• Numerous cyber security boutiques exist, with a footprint in
local markets
Liaise with governments
• Cyber security market depends on local regulations,
certifications, etc.
The battle is in the professional services, SI
and consulting space
• Consulting and event/threat intelligence are must-haves
• MSS will be first to commoditize and/or move to the cloud

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Growth opportunities – software
Cloudify everything
• But keep the ability to be privately hosted and on premises
• Data residency and visibility matter in a post-PRISM world
• Analytics is your next weapon – villains are already using it
Become the cyber security platform partner
• With a large, integrable offer
• With a broad range of partners
• IT security remains a best-of-breed market – be the best
Ease of use at the end-point, and in the
operations centre
• Skills are rare and expensive
• Skills are even rarer at the end point
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Growth challenges – software
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Partnerships & alliances are key to growth
• As services grow you need partners for pull-through
• Watch for a shift in balance from direct to indirect sales
Integrate or evaporate
• The software trend is towards simplify and integrate
• … which is the same thing!
• Niche players will become increasingly squeezed
Technology areas to invest in are:
• Vulnerability management: the first step in cyber security
• Behavioural analytics: IA for cyber security
• Encryption and obfuscation of data
• Biometric integration into IAM
• Security by design – integration with ADEs and ISVs

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Things that are NOT differentiators:
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Security capability in your
portfolio
• But the lack of is a negative
differentiator
How many events you
scan each day
• Threat intelligence is a
differentiator (for now)
How many SOCs around
the world
• 24x7x365 availability and
redundancy is mandatory
Things that are differentiators:
Local capacities
• Both for professional and
managed services
Business knowledge
• As security embraces more data
and applications specifics
End to end capacities
• Clients want more holistic
approaches
Differentiators

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Questions
2014Show me the Money! - The Market Opportunity in Cyber Security17
Duncan Brown
d.brown@pac-online.com
Mathieu Poujol
m.poujol@pac-online.com
Your questions are
welcome!!

18. © PAC
How can PAC support you?

19. © PAC
SITSI® Cyber Security market
research
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Your benefits:
Market growth
Client needs
analysis
PAC’s consulting services for cyber
security
Marketing &
Communication
Competitive
positioning
Account & deal support, M&A
advice and support
Understand clients’ needs and
priorities, by detailed segment
Comparative analysis by market,
segment or deal
Supports your campaigns with
content-based collateral
Competitive edge through
knowledge advantage!
Map your portfolio to clients’
key business issues
Position to win, focus effectively,
secure deals
Awareness creation and
credible presentation of
capabilities!
20 2014Show me the Money! - The Market Opportunity in Cyber Security

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PAC’s Cyber Security team
2014
Mathieu Poujol!
Principal Consultant
Cyber Security & Infrastructures
PAC Group
Duncan Brown!
Director
PAC UK"
"
Franck Nassah!
Senior Vice President
PAC France"
Dominic Trott!
Senior Analyst
PAC UK
"
"
Eugen Schwab-Chesaru!
Managing Director
Software & IT Services
Eastern Europe
"
"
"
Biswajit Banerjee!
Senior Analyst
Software & IT Services
APAC
"
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PAC France!
Pierre Audoin Consultants
Immeuble Actualis - 2e étage
21 boulevard Haussmann
75009 Paris, France
Tel: +33 (0) 1 56 03 67 24
info-france@pac-online.com
!!
!
From strategy to execution, PAC delivers focused and
objective responses to the growth challenges of
Information and Communication Technology (ICT)
players.
Founded in 1976, PAC is a privately held research &
consulting firm for the software and ICT services
market.
PAC helps ICT vendors to optimize their strategies by
providing quantitative and qualitative market analysis
as well as operational and strategic consulting. We
advise CIOs and financial investors in evaluating ICT
vendors and solutions and support their investment
decisions. Public institutions and organizations also rely
on our key analyses to develop and shape their ICT
policies.
For more information, please visit: www.pac-online.com
PAC’s latest news: http://blog.pac-online.com"
"
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80469 Munich, Germany
Tel: +49(0) 89 23 23 68 0
Fax: +49(0) 89 719 62 65
info-germany@pac-online.com
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023953 Bucharest-2 - Romania
Tel.: +40 (0) 21 410 75 80
Fax: +40 (0) 21 410 75 81
info-romania@pac-online.com
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New York, NY 10016, USA
Tel: +1 646 277-7250
Fax: +1 646 607-1716
info-us@pac-online.com !!
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PAC UK
Pierre Audoin Consultants
2nd Floor, 15 Bowling Green Lane
London EC1R 0BD
United Kingdom
Tel.: +44 (0) 207 251 2810
Fax: +44 (0) 207 490 7335
info-uk@pac-online.com !!
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Pierre Audoin Consultants
Rua Pedro de Toledo, 130,
Office 61, Vila Clementino
Sao Paulo 04039-030 Brazil
Tel.: +55 (11) 5539 0280
Fax: +55 (11) 5539 0280
info-latam@pac-online.com
About us!
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Pierre Audoin Consultants
610-611, Ashoka Estate,
24 Barakhamba road,
New Delhi - 110001, India
Tel: +91 (0) 11 4353 4818
info-apac@pac-online.com
2014