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28 July 2011 ,
Written by Dhruv Tanwar
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Gartner says presently just about 44 percent of the $16.5 billion worldwide security software market in 2010 belonged to Symantec, McAfee, Trend Micro, IBM and CA, the top five vendors. Not so far back in 2006, the top five commanded 60 percent of the market.
 Gartner analysts say the main reason for this trend is that established leaders are losing market share to smaller players. Many of these were start-ups that developed new offerings to meet new threats and vulnerabilities, implemented a successful go-to-market strategy, and built a niche presence that gradually eroded the market share of incumbent vendors. Other than mergers and acquisitions, Gartner says security relies a lot on innovation from start-up companies, given the continuous influx of new vulnerabilities and threats.
“The information security market is in a continuous state of consolidation, but even fairly intense merger and acquisition (M&A) activity has not stopped the market from being very fragmented,” said Ruggero Contu, principal research analyst at Gartner. “We expect more consolidation to take place place, along with innovations being introduced by new additions to the market,” he said. While M&A activity is a constant factor, a consolidated market is far from reality, i.e. in which more than 60-70 percent of the market is owned by the top five vendors.
Currently, Gartner points out, any consolidation at the top is contrasted by an expansion of the market at the bottom. |