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Report: Good Times Ahead For MSPs

Enterprises will outsource up to 90 percent of their security solutions by 2010, according to a report issued this week by the Yankee Group.

The report also indicated that the market for managed security solution providers (MSSPs) will reach $3.7 billion in that same time.

Yankee analyst Matthew Kovar attributed much of this potential growth to security-driven regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and the Sarbanes-Oxley Act -- pieces of legislation that require corporations to document just about everything.

"Organizations have used these legislated requirements to kick off security risk programs known in the early generations as vulnerability management initiatives," Kovar said. "Managed security service providers are merely naming the services to align with what executives are trying to do, and it's merely happenstance that the product name matches enterprise need."

As such, Kovar said that traditional solution providers are flocking to the managed services model in the hope of becoming MSSPs and cashing in. In particular, he said, over the past few months alone, a large number of resellers also have made the switch from reactive network engineering to managed services.

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