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Lockdown drives 11% increase in cloud security spending in Q1 2021

Lockdown drives 11% increase in cloud security spending in Q1 2021

Lockdown drives 11% increase in cloud security spending in Q1 2021


Our latest data of channel sales from software-as-a-service (SaaS) cybersecurity products over the first three months of 2021, showed network and endpoint security revenues picking up at the start of April.

The CONTEXT Weekly Revenue Trend Index compares current performance against a baseline value of 100 derived from an average four weeks in 2019. In sales of security products, it shows Europe’s top five markets staying below the baseline for most of Q1 2021.

However, while endpoint security sales through distribution fell -21% and network security sales dropped -12% year-on-year in Q1 2021, cloud security spending increased by nearly 11% during the same period.

This could be due to the work-from-home trend during lockdown, with employers investing in SaaS offerings to ensure their remote working employees and devices stay protected.

Within the cloud security space, the strongest year-on-year growth went to data loss prevention (138%), control management (98%), mail security (27%) and network security (20%) in the first three months of 2021.

Aside from mail security (-22%) all of these segments also recorded impressive growth compared to the same period in 2019, which had a higher revenue base. Control management notched a revenue increase of 316%, network security hit 68% and data loss prevention grew 67% from Q1 2019.

As one of the largest product segments already, control management is driving impressive momentum in the SaaS security market.

We believe that the rise of control management can be viewed in the context of the year-long shift to mass remote working across the region, and corporate investments in Infrastructure as a Service (IaaS) and Platform as a Service (Paas) offerings.

We expect continued investment across all areas of cybersecurity given the escalation in threat activity, especially ransomware targeting healthcare organisations and public institutions already overwhelmed by the workload from COVID-19.

By JT
 


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