Big. Small. Public. Private. Government. Retail. B2B. Non-profit.
Hackers don’t care about the size or purpose of the organizations they attack. They’re bombarding networks all over the globe with sophisticated multi-vector DDoS attacks, looking to grab any data from which they can profit.
Enterprises admit they are unprepared to defend against these sophisticated attacks. A report from Radware’s Emergency Response Team finds that 43% of enterprises concede they are unprepared to cope with an attack lasting just 24 hours.
To address customers’ needs, now is the time for service providers to roll out DDoS managed services by becoming Managed Security Service Providers (MSSP).
Transform risk into reward
Customers already rely on service providers for connectivity, computing resources and storage. Outsourcing the critical network security function to the same trusted partner is the next logical step. In fact, according to the Radware 2017 Executive Survey, more than 30% of enterprises want to purchase network security services from their service provider. That number is even higher in Europe.
It’s also a proven way for service providers to build their revenue base.
One of the world’s largest cloud delivery platforms was an early adopter in the MSSP business and is reaping the rewards. In the company’s Q1 2017 financial results, it a 36% year-over-year increase in revenue.
Level 3, a global communications provider, is seeing similar results. The company reported its managed security revenue grew 9x corporate revenue in the first quarter of 2017.
Service providers have found a new high growth, high margin service that their customers want now.
Three Easy Ways to Become an MSSP
Service providers don’t need to be experts in network security to help customers protect their data. There are three easy ways to become an MSSP that automate the protection of the data from network and application DDoS attacks.
1. White Label Service – A low risk way to quickly enter the market with no upfront capital expenditure outlay. Focus on sales, marketing and back office support, without worrying about operating and managing the attack monitoring and mitigation.
2. Build Your Own Service – A high reward way to tap in-house network security expertise to operate and manage a security service offering to maximize the return on investment. Combine the service provider team’s network security expertise with market leading technology to build a Security Operation Center (SOC) for DDoS monitoring and mitigation.
3. Migrate from White Label to Own Service – A low risk/high reward way to offer customers security services with minimal upfront capital expenses. Quickly serve the needs of customers while building expertise while migrating to management and operation of the services over time.
Based on analysis by Radware and market research firm Heavy Reading, MSSP operations can add up to a $400M+ revenue business over 5 years with 70+% net margins.
Whatever option a service provider selects solves multiple needs:
• Automates network security services to battle sophisticated hackers and bots.
• Launches a new, high-margin service with a high CAGR that customers already want.
• Extends reach of providing only connectivity or compute/storage into the service and application layers.
• Elevate ties to customers by offering professional services and other higher-value solutions.
Read “Cyber Economics: Validating DDoS Managed Service Delivery Models” to learn more.
Mike O’Malley brings 20 years of experience in strategy, product and business development, marketing, M&A and executive management to Radware. Currently, Mr. O’Malley is the Vice President of Carrier Strategy and Business Development for Radware. In this role, he is responsible for leading strategic initiatives for wireless, wireline and cloud service providers. Mr. O’Malley has extensive experience developing innovative products and strategies in technology businesses including security, cloud and wireless. Prior to Radware, Mr. O’Malley held various executive management positions leading growing business units at Tellabs, VASCO and Ericsson. Mr. O’Malley holds a Master of Business Administration degree, a Master of Science in electrical engineering, and a Bachelor of Science in electrical engineering from the University of Illinois. He also is a graduate of the Executive Strategy Programs at the University of Chicago.
*** This is a Security Bloggers Network syndicated blog from Radware Blog authored by Mike O'Malley. Read the original post at: https://blog.radware.com/serviceprovider/2017/06/new-revenue-stream-for-service-providers/