This Market Share Technology Report (MSTR) from Datanyze examines market share and trends for endpoint protection over the prior 12 months. Vendors can use this MSTR report to track technology market share among competitors and learn about the frequency of customer implementations, while software end users can read about the industry leaders and trends that influence popular features in endpoint security.
Market Summary: Endpoint Protection Projects Completed by 40% of Surveyed Companies
James Bond might like endpoint protection; after all, these days, that type of technology touches on data theft, doomsday scenarios, and alleged international spies.
PCs, mobile phones, tablets, printers, smartwatches, servers, and other items connect to business networks and allow employees and contractors multiple, convenient ways to retrieve files and data. But with these options come increased threats for these doorways, also called endpoints.
Endpoint protection defends against security threats for multiple devices that run on corporate networks. The software provides IT administrators with virus and malware detection, security validation, encryption, system isolation, firewalls, threat intelligence, incident reports, and compliance measures.
In the Ponemon Institute’s “2018 State of Endpoint Security Risk” report, 64% of polled respondents indicated their companies had experienced one or more endpoint attacks that compromised data or IT infrastructures. That number was up from 58% in 2017.
Such risk has prompted action. In quarterly research conducted by ZoomInfo from Q4 2018 through Q3 2019, an average of 40% of 1,019 IT professionals said their companies had completed endpoint protection projects within the last six months.
For vendors in the endpoint protection market, this interest in security products provides a strong base of future potential customers. Trend Micro and Symantec are fighting for the top unit market share as measured by Datanyze, but in many ways, the biggest vendor story is the sudden loss of sales for Kaspersky.Figure 1: A look at endpoint protection technology by estimated unit market share. Source: Datanyze.
Datanyze tracks unit market share, which is the number of units (i.e., tech installations) that vendors sell as a percentage of total sales in a market. ZoomInfo is the parent company of Datanyze. Note: This article does not address consumer endpoint security tools that might be installed on personal PCs or phones.
What is the Market Presence for Endpoint Protection Software?
Trend Micro (#1 in unit market share) and Symantec Endpoint Protection (#2) closely competed for customers needing endpoint protection. For much of 2019, these products were nearly identical in their market share.
Visit Datanyze’s market share page to check out all the vendors in endpoint security.
The ability to improve endpoint security features as threats become more complex will be a key way for vendors to differentiate their products.
“Cybersecurity vendors, generally, and endpoint security leaders, like Trend [Micro], in particular, are hustling to take full advantage of advances in cloud computing, data storage, and advanced analytics,” according to Security Boulevard. “Their focus has been on making [endpoint detection and response] functionalities more comprehensive, proactive, and easy to use.”Figure 2: Trend Micro and Symantec Endpoint Protection battled for the top position in unit market share in 2019. Source: Datanyze.
Meanwhile, the following acquisitions showed that endpoint security platforms have broad appeal to larger enterprise software sellers:
- In August 2019, the semiconductor and infrastructure software company, Broadcom, acquired Symantec’s enterprise security business for $10.7 billion. The Symantec purchase was a logical next step after Broadcom acquired networking storage vendor Brocade Communications Systems in November 2016 and mainframe software company CA Technologies in July 2018, according to Forbes. Broadcom is attempting to transition from chip maker to software solutions provider, Forbes said.
- Cloud endpoint security company Carbon Black (#5 on the list) was acquired by networking and cloud software vendor VMware for $2.1 billion in October 2019. VMware started a business security unit following the purchase.
- HCL Technologies acquired certain IBM products for $1.8 billion in December 2018, including IBM BigFix (#6).
Sales drop for Kaspersky after Russian intelligence accusations
International scandal has bogged down Kaspersky (#7), a well-known security provider that saw its unit market share decrease seven percentage points from March 2019 to June 2019. The share hovered at 2% through November, according to Datanyze numbers.
Figure 3: Kaspersky’s estimated unit market share dropped in 2019. Source: Datanyze.
The decline showed the repercussions of a 2017 directive from the U.S. Department of Homeland Security yanking Kaspersky’s products from federal information systems.
“The department is concerned about ... requirements under Russian law that allow Russian intelligence agencies to request or compel assistance from Kaspersky and to intercept communications transiting Russian networks,” according to the Department of Homeland Security. The potential of Russia gaining access to such information “directly implicates U.S. national security.”
The U.S. also contended that some of the software company’s representatives had ties to Russian intelligence agencies. Kaspersky has denied those claims and took the U.S. to court to block the ban, but the company has failed to sway any judges, according to Reuters.
As a result of the situation, Kaspersky reported that sales decreased by 25% in its North American market from 2017 to 2018.
McAfee CEO departs, other endpoint security vendor notes
Other endpoint security leaders on Datanyze’s list include:
- McAfee, whose VirusScan product is #3 on our list, is in the midst of an executive shakeup in which six senior leaders have left in the past year, including former CEO Chris Young, according to SearchSecurity.
- Tripwire (#4) recently announced a partnership with Eaton, a power management company, to enhance cybersecurity measures at U.S. utilities providers.
- Malwarebytes (#9), which reported in 2019 that ransomware detections against businesses increased 363% from Q2 2018 to Q2 2019.
Who is a Rising Star in Endpoint Security?
CrowdStrike went public in June 2019, capping a three-year rise to fame after the company detected intrusions by two Russian hackers into Democratic National Committee servers. U.S. intelligence agencies later concluded the intrusions were intended to influence the 2016 presidential election.
CrowdStrike was also mentioned in President Donald Trump’s July 2019 call to Ukraine’s president, which triggered a series of Congressional hearings that led to impeachment articles being drafted by the U.S. House of Representatives. Trump was later acquitted by the U.S. Senate.
For its part, CrowdStrike said it does not affiliate with political parties and provides cybersecurity services to various Democratic and Republican organizations.
All that considered, CrowdStrike’s public offering was among the most watched IPOs of 2019. CrowdStrike focuses on cloud-based endpoint protection through its Falcon products.
What are Buyer Trends in Endpoint Protection?
Whether companies were worried about a group or foreign government trying to lift data -- after all, the U.S. contends North Korea was behind the theft of confidential digital information from Sony Pictures in 2014 -- or firms simply feared a random hacker entering their networks, a slew of endpoint security implementations occurred from late 2018 into 2019, according to ZoomInfo’s survey.
If you want to know who's using specific endpoint protection vendors, check out ZoomInfo's intelligence product.
Meanwhile, an average of 25% of companies each quarter from Q4 2018 through Q3 2019 said similar endpoint initiatives were already in progress. However, projects in their midst trended downward by the latter quarter.
It’s likely some of these projects were inspired by bring-your-own-device (BYOD) work environments, where employees are encouraged to access corporate information via personal phones and tablets. Such policies can save companies money in terms of computing devices and also give workers more comfort, according to commentary on BPI Network.
However, “Those same businesses that most gain from BYOD policies are also becoming primary targets for cyber criminals, who use the relative insecurity of smaller organizations to steal valuable data,” BPI Network wrote. “Thus, for businesses to use BYOD effectively, they need to be certain of the network’s security -- which means focusing on endpoints.”
Also, in Q3 2019 alone, nearly one quarter of respondents said their firms were currently experiencing endpoint security challenges.Figure 4: This breakdown of project timelines shows many endpoint protection implementations were completed in late 2018 and the first half of 2019. Source: ZoomInfo.
Security breaches can be expensive. The average cost per compromised endpoint is $440, according to the Ponemon Institute report. Small- and medium-sized businesses -- which Ponemon considered as firms with 1,000 or less employees -- have a higher average cost of $763.
Worse, “60% of small businesses that fall victim to an attack shut their doors permanently within six months,” reported BizTech.Figure 5: Data tracked over time showed many current projects wrapping up. Less projects are planned in the near future. Source: ZoomInfo.
What is the Outlook for Endpoint Protection Software?
Based on ZoomInfo’s survey results from Q3 2019, nearly one-quarter of respondents indicated their companies faced challenges with endpoint security. That finding suggests that future projects are coming at some point, perhaps in the second half of 2020 or beyond.
As for hacker spies, 007-like responses, and political whodunit, they will all continue as cyber warfare gains strength, especially given it puts less soldiers at risk than traditional military tactics. As a result, the stakes will increase for any company that does not safeguard network endpoints.
About our data collection
Datanyze collects technographic data by scanning more than 35 million web domains daily, using a combination of web crawling, third party providers, and natural language processing. Most technologies leave behind a footprint or “signature” that helps the crawler identify it from other elements of a website or mobile app. By finding and cataloging these signatures across millions of sites, Datanyze can determine how many companies use a given technology -- and take note of when certain technologies appear or disappear from a company’s site.
For technologies that leave no footprint (such as databases and CRMs), Datanyze uses natural language processing as an alternative method to identify tech deployment. This involves scanning and digesting unstructured data -- text from job postings, social media, press releases, and more -- to infer a relationship between a company and a particular technology. This method involves complex keyword targeting.
Also, ZoomInfo (the parent company of Datanyze) conducts quarterly surveys of a percentage of business professionals within its database, asking them detailed questions about technology purchases and upcoming projects.
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