Security VARs enjoy sizzling start to summer

Market back on song following tough couple of years, according to anecdotal evidence

A renewed feel-good factor has spread through the IT security channel, with many convinced the June quarter was the best since 2010.

Despite being a must-have rather than nice-to-have area of IT, security has not been immune to the downturn.

Although the numbers are not yet out from the likes of Gartner to back it up, anecdotal evidence from several boutique security VARs points to an uptick in sales since March.

Cris Pikes, chief executive of security VAR Sysec, said his customers had benn looking at security spending more seriously since the start of the firm's Q1 beginning in April.

"It looks like things are getting back to where they should be. 2011 and 2012 were much tougher than 2010 but Q1 was a strong quarter and we [us and our peers] were all pleasantly surprised," he said.

This was a view seconded by Jonathan Lassman, managing director of NTS, who attributed the uptick to a combination of recent enforcement activity from the Information Commissioner's Office and renewed demand for PCI compliance.

"Legislation will help to drive growth of the sector," he said. "Over the past three or four years everyone has ignored it but now we are coming out of the recession people are finally seeing the wood for the trees."

Tom Millar, managing director of ITC Global Security, said his firm's revenues are currently tracking 15 per cent ahead of last year, with security now moving ahead of networking as the main revenue generator. He attributed the growth partly to demand for the network visibility and control services it offers from its secure operations centre.

"In the past we have found our SOC services quite hard to sell. But we have just won three significant global contracts with businesses that all suffered breaches," he said.

Ian Kilpatrick, chairman of security VAD Wick Hill, also noticed the trend having posted a 30 per cent jump in Q1 sales.

"Is it boom time in the security industry? Not yet – we are probably two quarters away from saying that," he said.

"You can only sit on your hands for so long before you have to buy something. Is it evidence that the economy is picking up, or is it that you can only put off [spending] for so long?"