VeriSign's service is based on its Security Defence Appliance, which is placed inside a corporate network to collect, analyse and store logs. VeriSign says it is expanding the log-management service to collect raw data or just the security-related events pertaining to applications and databases of corporate customers.

According to Gartner, several managed security service providers, including Lurhq, Internet Security Systems and Counterpane, also offer log analysis services.

"Centralised logging and monitoring of application-level events is being driven by regulatory compliance, highly publicised data theft incidents and targeted application-level attacks," says Kelly Kavanagh, Gartner analyst in information security and privacy.

Amrit Williams, a Gartner consultant who specialises in data-analysis tools, notes that the choice between a corporation developing its own log-aggregation process, or outsourcing to a service provider is often made in favour of a service provider because there are lower up-front costs.

VeriSign says its log-management services are used by 800 corporations to manage about 10 000 devices.