Global Security Spending on Rise

Friday, December 8, 2017 @ 02:12 PM gHale

Security spending for enterprises on a global basis will rise to $96.3 billion next year, which is an eight percent jump from this year, a research firm said.

It appears organizations’ security spending is the result of regulations, shifting buyer mindset, awareness of emerging threats and the evolution to a digital business strategy, said researchers at Gartner.

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“Overall, a large portion of security spending is driven by an organization’s reaction toward security breaches as more high profile cyberattacks and data breaches affect organizations worldwide,” said Ruggero Contu, research director at Gartner. “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.”

Security testing, IT outsourcing and security information and event management (SIEM) will be among the fastest-growing security areas driving growth in the infrastructure protection and security services segments.

Regulatory compliance and data privacy have been stimulating spending on security during the past three years, in the U.S., but most recently in Europe around the General Data Protection Regulation coming into force on May 28 next year, 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.

Gartner researchers said by 2020, more than 60 percent of organizations will invest in multiple data security tools such as data loss prevention, encryption and data-centric audit and protections tools, up from 35 percent today.

Skills shortages, technical complexity and the threat landscape will continue to drive the move to automation and outsourcing, the survey said.

“Skill sets are scarce and therefore remain at a premium, leading organizations to seek external help from security consultants, managed security service providers and outsourcers,” Contu said in a post. “In 2018, spending on security outsourcing services will total $18.5 billion, an 11 percent increase from 2017. The IT outsourcing segment is the second-largest security spending segment after consulting.”

Gartner predicts by 2019, total enterprise spending on security outsourcing services will be 75 percent of the spending on security software and hardware products, up from 63 percent in 2016.

Enterprise security budgets are also shifting toward detection and response, and this trend will drive security market growth during the next five years.

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