Firms say security breach is main factor influencing security spending
International research and advisory firm, Gartner, is projecting that worldwide information security spending will total $96.3 bllion in 2018, an increase of eight per cent from 2017.
The firm, which provides information technology related insight for IT and other business leaders located across the world, said in its latest report that organisations were spending more on security as a result of regulations, shifting buyer mindset, awareness of emerging threats and the evolution to a digital business strategy.
“Overall, a large portion of security spending is driven by an organisation’s reaction toward security breaches as more high profile cyber attacks and data breaches affect organisations worldwide.
Cyberattacks such as WannaCry and NotPetya, and most recently the Equifax breach, have a direct effect on security spend, because these types of attacks last up to three years,” said Ruggero Contu, Research Director at Gartner.
This is validated by Gartner’s 2016 security buying behaviour survey. Of the 53 per cent of organisations that cited security risks as the number one driver for overall security spending, the highest percentage of respondents said that a security breach was the main security risk influencing their security spending.
As a result, security testing, IT outsourcing and Security Information and Event Management (SIEM) will be among the fastest-growing security subsegments driving growth in the infrastructure protection and security services segments.
According to the repor, “regulatory compliance and data privacy have been stimulating spending on security during the past three years, in the US–with regulations such as the Health Insurance Portability and Accountability Act, National Institute of Standards and Technology, and Overseas Citizenship of India–but most recently in Europe around the General Data Protection Regulation coming into force on May 28 2018, as well as in China with the Cybersecurity Law that came into effect in June 2016.
These regulations translate into increased spending, particularly in data security tools, privileged access management and SIEM.”
The firm forecasts that by 2020, more than 60 per cent of organisations will invest in multiple data security tools such as data loss prevention, encryption and data-centric audit and protections tools, up from approximately 35 per cent today.
Skills shortages, technical complexity and the threat landscape will continue to drive the move to automation and outsourcing, the firm predicted.
“Skill sets are scarce and therefore remain at a premium, leading organisations to seek external help from security consultants, managed security service providers and outsourcers. In 2018, spending on security outsourcing services will total $18.5 billion, an 11 per cent increase from 2017. The IT outsourcing segment is the second-largest security spending segment after consulting,” said Contu.
Gartner predicts that by 2019, total enterprise spending on security outsourcing services will be 75 per cent of the spending on security software and hardware products, up from 63 per cent in 2016.
Enterprise security budgets are also shifting towards detection and response, and this trend will drive security market growth during the next five years. “This increased focus on detection and response to security incidents has enabled technologies such as endpoint detection and response, and user entity and behaviour analytics to disrupt traditional markets such as endpoint protection platforms and SIEM,” said Contu.
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