Converging security provides revenue opportunities in VSaaS and ACaaS

In this article, Rodrigue Zbinden, CEO of Morphean, explores the market opportunities afforded to the IT community by the strengthening relationship between physical security and the cloud.

The Video Surveillance as a Service (VSaaS) market is expected to reach USD $5.93 billion by 2022, growing at a CAGR of 22.0% buoyed by its low cost set up, the flexible scalability on offer and the increasing demand for real-time and remote access to video surveillance data. For the IT security professional already working with cloud systems and services, the growth in connected digital devices through the IoT is resulting in a growing appetite for physical security, such as network cameras, to enhance existing IT systems and assist business intelligence gathering.

We know this to be true because Morphean, a hosted security solutions provider, recently commissioned an independent survey into the attitudes and behaviours of 1000 IT decision makers across the UK and Europe. We wanted to gain a better understanding of purchasing intent for evolving security provision in the 2020s. Results revealed that as many as 84% of IT managers reported currently using (48%) or considering using (36%) cloud-based video surveillance (VSaaS) or access control (ACaaS) systems to enhance their security provision.

The resulting report ‘Landscape Report: Hosted Security adoption in Europe’, clearly shows better security, cost benefits and better functionality to be the most influential factors and the most commonly realised benefits of hosted security solutions. It is perhaps because of its digital DNA that the IT department is increasingly responsible for physical security purchasing decisions, a relationship historically managed by the fire and security professional who has been slow to adopt digital transformation practices and cloud-based business models.

 

Confidence around cloud security

The survey results offered insight into the reasons for increasing interest in the cloud from a business perspective. Despite initial concerns around the cybersecurity of cloud, these fears have proven to be unfounded. Better security ranked #3 among the main benefits realised (44%) compared to 27% in 2018; representing a 63% increase in the year and shift in perception around cyber security concerns.

Half of IT managers surveyed reported data security as a priority for improvement in the next 12 months, with 47% also citing cost effectiveness and greater flexibility as major benefits. We therefore expect to see a greater proportion of the circa 31-33% (2018-2019) of IT budget being spent on cloud services in the 2020s. In addition, of the 36% of IT managers who were considering VSaaS and ACaaS, 79% anticipated introducing these services within 12 months. Nearly 8 in 10 said that the integration of these services with existing platforms or emerging technologies, such as AI, would also accelerate adoption.

 

Improved operational performance in the cloud

Our survey also revealed that 36% of IT managers identified operational performance as a priority for improvement within the next year. Again, if we consider the many aspects of operational performance, productivity will always be a key measure and cloud facilitates leaner decision-making, being more scalable and customisable, and adapting to the changing business landscape as required.

77% of IT managers reported that physical security was not optimised within their organisations, with as many as 20% identifying it as a priority in the coming year. When we consider this in the context of the GDPR there is increased pressure on organisations to invest in well-designed products and services with clear lifecycle support, facilitated by providers who can demonstrate impeccable security credentials and a thorough understanding of cybersecurity principles and requirements.

 

Advantages of convergence

For the IT manager, confident about the security of their cloud provision, and committed to making operational performance improvements across teams, systems and services, it makes sense to unite and centrally manage both cyber and physical security. Many of these solutions utilise easy plug and play capabilities, are fully scalable, and operate in accordance with the pay-per-use models already common in IT, rather than the capital expenditure models prevalent in the fire and security sector.

Both VSaaS and ACaaS offer customers a security solution that is not only invaluable for the management and protection of premises, assets and people, but integrates seamlessly with cloud infrastructure. Despite the physical security industry being slow in their adoption of cloud, there are nevertheless compelling reasons for both the vendors of these technologies and the IT community to work together.

 

Partnerships in a converging industry

The joining of solution providers who are well-versed in network infrastructure with the physical security vendors who already have proven expertise and an established customer base could result in a compelling offering; a complete solution which offers both protection of physical boundaries and the cybersecurity of systems.

In a market that’s rapidly evolving, as our survey results illustrate, the growing number of customers who are requesting converged cloud and physical services means that there’s a clear demand. Establishing supply chains that provide dedicated solutions which bridge the gap between the physical and the digital will ensure that businesses are capable of meeting the wide range of security challenges which are so prevalent in our modern age.

 

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