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Symantec (NASDAQ:SYMC) -- which competes with McAfee (MFE), IBM (NYSE:IBM) and VeriSign (NASDAQ:VRSN) in the Security-as-a-Service (SaaS) segment -- recently introduced a new cloud storage platform that supports SaaS services built on its FileStore architecture. Launched in October 2009, FileStore is the latest scalable file server technology by Symantec that offers higher storage capacity along with more features compared to Symantec’s traditional Cluster File System.

We expect Syamtec’s Consulting & SaaS revenues to more than double over our forecast period and there could be additional upside to the $24 Trefis price estimate for Symantec’s stock if SaaS revenues were to grow more than we forecast as a result of Symantec’s new FileStore services.

Consulting & SaaS 4% of Symantec’s stock

Symantec, through its SaaS or Managed Services model, offers antivirus, backup and email security service over the internet. Customers can choose to pay only for the product license they require, which is valid for a particular time period, without paying for the whole security package. We estimate Consulting & Saas to constitute 4% of $24 Trefis price estimate for Symantec’s stock.

FileStore Helps Create Secure Private Clouds for Hardware Savings

FileStore helps companies create private clouds for storing their data. Clouds separate the software file system from the underlying hardware storage system used and allow companies to easily grow their storage capacity whenever necessary by adding low-cost storage hardware. As a result, companies can save money by avoiding unnecessary hardware investments.

Furthermore, Symantec makes it easy for customers to layer in more security features for their cloud using Symantec End Point Protection software.

Symantec End Point Protection is an antivirus/antispyware software used by companies to protect their notebooks and desktops. The software also offers firewall protection to prevent unauthorized Internet users from accessing private networks over the Internet.

Consulting & Saas revenues to increase to $1 Billion for Symantec

In the last quarter of 2009, Symantec acquired Softscan, the privately held SaaS security leader in the Nordic region, to strengthen its SaaS offerings. We expect Syamtec’s Consulting & SaaS revenues to increase from $434 million in 2009 to $1.1 billion by the end of Trefis forecast period.

You can modify our forecast above to see how Symantec’s stock could be impacted if its SaaS-based revenues were to grow faster than we forecast as a result of demand for FileStore and incremental sales of Symantec’s End Point Protection software.

Disclosure: No positions

Source: How Symantec Will Benefit From New Cloud Storage Software