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Every day, an organisation some where has experienced a cyber threat. Security portal hackmageddon.com which collects cyber attack statistics revealed there were 1,061 attacks in 2016. That’s about three attacks a day.
No wonder research firm IDC said revenue for the information security industry – hardware, software, and services – is likely to top US$100 billion in 2020 as enterprises spend heavily to fend off cyber attacks.
IDC forecasted that global revenue for security technologies will grow from US$73.7 billion in 2016 to US$101.6 billion in 2020, or at a compound annual growth rate of 8.3 per cent. That growth rate is more than twice the forecasted IT spending over the next five years.
Funny how all that money isn’t exactly making anyone or organisation feel any more cyber secure since data breaches are an almost daily occurrence. Nevertheless, the security industry is blessed since no tech buyer would ever want to be accused of scrimping on protecting infrastructure.
Enterprises fear becoming the next cyberattack victim and boards of directors are demanding security budgets to be used wisely. Indeed, ZDNet’s CXO 2017 spending planner noted that network security is number two priority for the year ahead with securing networks and data the number one challenge.
Not surprisingly, the banking industry invested the most into security in 2016 said IDC with US$8.6 billion, followed by discrete manufacturing, government, and process manufacturing. Those industries account for 37 per cent of annual security spending. Healthcare will be the fastest growing area for security over the next five years with a compound annual growth rate of 10.3 per cent.
Services is likely to account for 45 per cent of all security spending, added IDC, with managed security services accounting for much of that expenditure. Software is the second largest spending area followed by hardware. Security analytics software will have a compound annual growth rate of 12.2 per cent.
The US will be the largest security market in 2016, followed by Western Europe and Asia Pacific.
In Singapore, the Government will be calling for S$2.4 billion of ICT tenders this year (2017). Cyber security will soak up 22 per cent of the spending or S$528 million, emphasizing the importance the Government is putting on the safety of digital systems in the public sector.
A huge portion of the money will go into the first Government Security Operation Centre (SOC) which will feature artificial intelligence and the analytics to detect cyber threats. The tender for the SOC will be called in early 2018.
By Larry Dingan of ZDNet, additional reporting by Techgoondu staff.
Join M1 at Cyber Security Forum 2017 October 13 2017 at the Marina Mandarin Hotel to learn ways to manage cyber threats.
