For immediate release: 28 June 2018
Cybersecurity has become a business critical function, yet remains non-core competency for most C-suite executives, says GlobalData
In today’s digital economy, it is essential that companies of every size can collect, store and adequately protect customer data and proprietary secrets. Failure to do so will significantly damage a company’s brand and reduce the quality of the product it produces, with concomitant impact on revenues and profitability, according to GlobalData, a leading data and analytics company.
The company believes that spending on artificial intelligence (AI)-infused cybersecurity tools is set to increase significantly over the coming years.
GlobalData figures show that companies worldwide spent a combined $114bn on security products (both hardware and software) and services in 2017. By 2021, the figure is expected to have passed $140bn, at a compound annual growth rate (CAGR) of 6%. Spending on services accounted for 68% of total spending in 2017 and this share will remain relatively steady through 2021, despite the CAGR of the services segment (4.9%) being outstripped by that of products (7.7%).
The company’s latest thematic research report, ‘Cybersecurity’ reveals that whilst cybersecurity has now become a critical business function, it remains a non-core competence for a significant number of boards. Chief information security officers (CISOs) have become increasingly common in recent years (recent research suggests that nearly two-thirds of large US companies now have a CISO position), but the majority do not report directly to the CEO, which reduces their effectiveness.
Cyrus Mewawalla, Head of Thematic Research at GlobalData commented, ‘‘The frequency of cyberattacks is only likely to accelerate over the coming years, therefore it is vital that senior executives have a full understanding of the inherent risks and implications. The losers will be those companies whose boards do not take cybersecurity seriously, as they run a higher risk of being hacked.’’
It is hard to assess a company’s exposure to cybersecurity risk, but the composition of the board often provides clues: CEOs who do not have a Chief information security officer (CISO) reporting directly to them present a high risk.
Mewawalla continued, ‘‘Traditionally, most companies have adopted a prevention-based approach to cybersecurity, but recent advances in technology areas like machine learning are enabling a move towards active detection of threats.’’
This allows pre-emptive action to be taken to stop breaches before they occur and also serves to free up resources currently occupied with chasing false positives from existing, more reactive systems.
GlobalData identifies the key cybersecurity technologies as network security, unified threat management, artificial intelligence, behavioural analytics, SIEM, endpoint security, mobile security, identity management, data security, application security, email security, cloud security, managed security services, post breach consultancy services.
Looking at unified threat management (UTM), GlobalData believes that this should be an area for growth going forward. The process can tackle diverse threats and also address the issues faced by companies that find themselves with a myriad of security products from a wide variety of vendors, which can result in a security landscape that lacks coherence.
Mewawalla adds, ‘‘There is an ongoing move away from a prevention-based approach to cyberattacks and towards active detection of threat actors using intelligence-led tools. Chief information security officers (CISOs) and security executives are increasing investment in detection and response based offerings such as deception technology, software-defined segmentation and behavior analytics.’’
This increased emphasis on detection and response can free up resources currently occupied with chasing false positives.
Information based on the GlobalData Thematic Research report: ‘Cybersecurity’
For more on GlobalData’s Technology Thematic Research product, click here https://www.globaldata.com/technology/research-areas/thematic-research/
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Notes to Editors
- Quotes provided by, Cyrus Mewawalla, Head of Thematic Research at GlobalData
- Information based on the GlobalData Thematic Research report: ‘Cybersecurity’
The report explores why cybersecurity is ‘mission critical’ for every business. In today’s digital economy, it is essential that companies of every stripe can collect, store and adequately protect customer data and proprietary secrets. Failure to do so will significantly damage a company’s brand and reduce the quality of the product it produces, with concomitant impact on revenues and profitability. Cybersecurity has therefore become a critical business function, yet it remains a non-core competence for a significant number of boards.
The report covers the key:
– Industry analysis
– Value chain
– Companies section
– Sector scorecards
– Technology briefing
About Thematic Research
GlobalData has developed a unique thematic methodology for valuing technology, media and telecom companies based on their relative strength in the big investment themes that are impacting their industry. Whilst most investment research is underpinned by backwards looking company valuation models and most industry research is analysed in sector silos, GlobalData’s thematic methodology identifies which companies are best placed to succeed in a future filled with multiple disruptive threats. To do this, GlobalData tracks the performance of the top 600 technology, media and telecom stocks against the 50 most important themes driving their earnings, generating 30,000 thematic scores. The algorithms in GlobalData’s “thematic engine” help to clearly identify the winners and losers within the global TMT sector.
4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors. PR2069.