As we approach the ten year anniversary of the subprime mortgage crisis, which precipitated a housing bubble collapse and contributed significantly to the Great Recession, I am wondering if another bubble is building?
Who could have seen the housing bubble collapse coming? Even “Former Federal Reserve Chairman Alan Greenspan said he was late to see the storm gathering around U.S. mortgage lending practices…” Really! You must be kidding me! The ‘evidence’ of such a bubble building had plainly been on TV for years prior. When even the A&E television network had been running a weekly show “Flip That House” for four (4) seasons prior to the collapse, how much further ‘evidence’ does the public need?
Similar anecdotal ‘evidence” exists which suggests that an MSSP bubble is well underway. When I see reports saying “Gartner Highlights MSSP Opportunity As Security Market Set To Hit $86.4B In 2017,” and ads encouraging re-sellers and even SIs to get into the MSSP space, then I am pretty leary of such. Please explain to me what experience and expertise re-sellers and SIs could bring to the MSSP space? That is particularly true when many existing MSSP customers are less than fully satisfied with their existing MSSPs performance and value add. This looks like a poor situation to me.
Even articles intended for existing MSSPs seem to be hyping this growth. Statements like “IT security has become an arms race as cyber attacks become more sophisticated and businesses endeavor to keep up with the latest malware variant or spear phishing gambit.” in an article entitled “Cybersecurity concerns fuel MSSPs, managed security market” smack of hype to me, and not sound market research.
Meanwhile may of the existing MSSPs are scrambling to increase their value add by moving up the IP ladder to be not just ‘mere’ MSSPs, but to become MDR vendors. This comes as Gartner has even formalized seven distinctions between MSSPs and MDR vendors. One of the rationales behind this move to become an MDR is explained in a recent market research report from ConnectWise, New ConnectWise Research Shows MSPs Are Underwater.
This evolving and highly competitive market demands that MSSPs and MDRs adopt new and improved tools for both detection and response now. MSSPs and MDRs cannot respond to what they cannot detect (quickly and accurately!), and customers are clearly saying 'don't just tell me about a problem, do something about it!' (i.e., respond too, in addition to better detection). Find out more about PatternEx's improved detection capabilities.