A new report from Frost & Sullivan is calling attention to the growing popularity of as-a-service business solutions. The research firm notes that as-a-service models – which can cover everything from biometrics to infrastructure to identity management – are often more affordable and more convenient than fully packaged, non-service-based alternatives.
In that regard, as-a-service solutions do not have significant post-installation maintenance costs, nor do they require companies to have the same level of in-house operational expertise in order to use the product. As-a-service products are also highly customizable, making niche services like Video-Analytics-as-a-Service more accessible for large enterprises and small businesses alike.
Frost & Sullivan predicts that the “servistization” trend will ultimately force more traditional solution providers to adapt to a shifting market, though the firm stressed that the industry will still need to determine best practices for pricing and measurement.
“The security market is paving the way for hybrid business models offering a mix of hardware scalability, limited cost of ownership and controls to clients,” said Frost & Sullivan Research Analyst Aravind Srimoolanathan. “Incumbents providing solutions through conventional means will face competitive pressures from innovative substitutes.”
The report advises service providers to focus on data analytics, which will help demonstrate the value of security services for end users in the public and private sector. It also recommends targeting industries like banking and oil, which are typically well funded and have a large demand for comprehensive (and scalable) security solutions that can safeguard an entire network.
Previous Frost & Sullivan reports have been particularly bullish on the prospects for Biometrics-as-a-Service solutions, which make it easier for companies to integrate biometric technology into their existing infrastructure for authentication, onboarding, and access control. Earlier this summer, the research firm indicated the global biometrics market will hit $11.1 billion by 2023.
November 14, 2019 – by Eric Weiss