• Cory Ryan

4 Trends in the Email Security Market Segment

Updated: Feb 23

Research shows that 96% of all public data breaches are initiated over email, and security threats are constantly evolving and increasing in number. (Clearly nobody is immune if data security giant FireEye can fall victim to hackers.) In addition to Malware, companies are scrambling to prevent and protect against malicious URLs, attachments, and credential phishing expeditions, which are becoming all too common. With millions of people now working from home, the need for Email security is more urgent and massive than ever. Consequently, here’s what we’ve observed:

1. Security Suppliers Boosting Offerings

Many suppliers are beefing up their offerings to address the need for more and better Email security. Some have come up with solutions like Endpoint Detection & Response (EDR) and Data Loss Prevention (DLP) to guard client data. These solutions offer one step above endpoint protection -- instead of simply identifying or fixing a problem after it happens, they prevent breaches from happening pro-actively, 24/7. Two of the major players in this market, Proofpoint and CrowdStrike, recently joined forces to offer customers Advanced Email Threat Detection, which shares threat intelligence and provide multi-layered protection to thwart potential breaches.

2. Symantec's Decline

Conversely, former security market leader Symantec, since being acquired by Broadcom last year, has seen its Email Security budget cut by more than $1B. Clients have reported price increases of 10% across Symantec’s product set, and they are being forced to switch to more expensive subscription-based licenses. These changes, and a downturn in Symantec support, have prompted thousands of Symantec users to make the move to Proofpoint, CrowdStrike and Microsoft. (Proofpoint, which is offering “special offers” to Symantec customers, has already migrated 3 million mailboxes in the past 24 months.)

3. Microsoft's Security Presence

Microsoft is bundling security solutions into its offerings and growing its profile in this space. Although more advanced security products are available from Proofpoint and Okta, customers like how easy it is to get these solutions from Microsoft, a vendor that they likely already have a relationship with. Due to this, Microsoft is a relatively new and viable threat to be used as a competitor to Proofpoint and/or Okta.

4. Creating a Better Negotiation Position with Security Providers

ClearEdge observed a trend within our client base that many organizations are asking to sign shorter-term deals. This is mainly due to the fact that security risks are so quickly changing, that customers are reluctant to commit multiple years to a products that may become obsolete. To get customers to sign these longer agreements that will lock-in future revenue, many suppliers have shown a willingness to significantly compromise on price to win a multiyear deal. This trend highlights that security sales teams will be receptive to any negotiation strategy that puts long-term revenue into question, making a 1-year deal and competition excellent viable alternatives for your negotiation strategy.

Cory Ryan is an Analyst II at ClearEdge Partners.

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