Small enterprises take IT cover to manage threats

IT vendors make hay on robust demand for managed security software applications.

The rise in the adoption of information technology and the Internet by small- and medium-enterprises in India, has made them more vulnerable to threats of viruses and spam as well as data theft. SMEs are faced with problems "" both from within and outside the organisation.

Externally, they could be attacked by various malicious codes eager to steal data, while internally they are faced with problems related to security of confidential data which might be misused by employees.

A recent AMI-Partners study indicates that Indian small and medium enterprises spent nearly $160 million (around Rs 600 crore) in 2006 on security-related products and services "" such as anti-virus and anti-spam software, intrusion detection programs, firewalls and other IT security measures. The security spend in the year 2007, however, crossed $ 218 million (over Rs 850 crore).

AMI-Partners analyst, Neha Jalan, says enterprise IT security is a key concern for SMEs. Thus, investments in security solutions are anticipated to grow dramatically in India in the coming years.

"Though SMEs are now more open to considering investments in security solutions, their limited in-house IT skills and resources pose a major barrier in their deploying and managing a sophisticated security infrastructure. The shortage of qualified personnel within SMEs is a third factor. Added to this is the fact that security is dynamic "" knowledge and software that currently seems adequate soon becomes obsolete, " she adds.

IT security companies are lapping up this opportunity, Oracle for instance, offers Oracle Identity Management that helps to monitor and control what, where, and with whom information can be stored, shared, or disseminated.

Oracle's Database Vault, Advanced Security and Oracle Secure Backup ensure security and confidentiality of critical information assets.

"With growing awareness of governance, risk and compliance requirements, there will be more demand for security solutions in the future. There is a huge shift in the way information security has been perceived from the business standpoint in the past year. " says Seema Ambastha, director - technology sales consulting, Oracle India.

"An increasing number of organisations, especially banks and telecom companies are enhancing their information security infrastructure in total, with higher budget allocations. We are foreseeing the thrust with Indian MNCs adapting various privacy and information security measures to meet the global regulatory standards," says Ambastha.

"SMEs today are looking for solutions that will protect their network and investments both from internal and external threats, which are scaleable and are easy to manage. Riding on the growth opportunities the SMEs find security solutions like unified threat management (UTM) security appliances to be the best answer to the solutions as mentioned above," says Soum Mukherjee, director- channel and SME business, Avaya GlobalConnect.

Symantec, another global player in the IT security business is also reaping in the benefits of an advanced need for IT security among SMEs. " IT security in India possesses a huge business opportunity, this section contributes towards a large part of our revenues," says Ajay Verma, director - channels and alliances, Symantec India.

Symantec's Endpoint Protection (SEP) provides a feasible solution for the SMEs. Verma claims the product reduces administrative costs in terms of head-count and man hours by about 40 percent.

"We also provide 25-user packs, to cater especially to smaller businesses with less than 100 employees, so that they do not have to run around for licensing and other hassles," he adds.

Managed security is anticipated to be one the fastest growing security investment areas among Indian SMEs. Vendors who can provide secure, reliable and scaleable services will find the Indian SME segment to be a highly receptive market.