Hacking Incidents Forcing Companies to Ramp-up IT Security Spending
The total cybersecurity market capitalization is expected to exceed $60 billion this year as businesses look to ramp up their IT security. In the worst-case scenario, Canalys sees a growth of 6.6% year-over-year.
However, bearing in mind major IT hacking incidents that took place recently, bigger companies are expected to increase IT spending on cybersecurity to protect accelerated digital transformation.
“Cybersecurity professional services engagements in response to this latest issue will be one of many factors contributing to sustained investment this year, especially in newer solutions to mitigate emerging threats. Growth in add-on subscriptions providing new features, products to secure the cloud and delivered from the cloud, and upgrades to existing solutions will be key drivers for expansion,” said Matthew Ball, Canalys Chief Analyst.
“The need for organizations to adopt multi-layered and holistic approaches, combining employee awareness training, data protection and backup, threat and vulnerability detection, and response will remain critical.”
Following the same line of thought, analysts at the investment company Wedbush reiterated their positive outlook on stocks of cybersecurity companies as they believe a huge increase in the IT and cybersecurity spending is on its way, especially in the light of the “game-changing” SolarWinds IT hacking incident.
“With more sensitive data and critical information needing to be protected in these cloud deployments with work-from-home accelerating these trends, we believe security vendors stand to benefit during 2021, as more spending shifts towards broader cloud deployments,” Wedbush analyst Daniel Ives wrote in a note.
“We believe there is a $200 billion dollar growth opportunity in cloud security up for grabs over the next five years for those vendors that have the solution sets to protect critical cloud deployments and seamlessly work with on premise and public/hybrid workloads.”
This business stance is in line with the Canalys report, which highlights spending on the critical IT infrastructure as one of the top priorities among the largest tech companies. The range of IT threats has broadened with new IT attacks likely to keep emerging, the report notes.
Higher-than-expected IT cybersecurity business spending is expected as 2021 progresses with the rollout of COVID-19 vaccines, which would accelerate the reopening of economies and create a more sustainable global recovery while the shift to online work continues in an expedited manner.
The latest on IT business projections from analyst company Canalys show that companies are likely to increase spending on cybersecurity, with the entire industry projected to surge by 10% this year.
About the Author
Avi Ben Ezra is the Chief Technology Officer (CTO) and Cofounder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.