Global spending is expected to surge to over $124 billion by the end of 2019, according to Gartner.
Data breaches and security incidents can be costly to the enterprise, resulting in service disruption, a battering to reputation, lost consumer trust and network damage.
A recent report conducted by the Ponemon Institute and sponsored by IBM estimates that the average cost of a data breach to an enterprise company is $3.86 million, and the average cost for each lost or stolen record containing sensitive and confidential information has increased by 4.8 percent year over year to $148.
To make matters worse, the average time it takes to identify a data breach is 197 days.
The risk to both consumers and businesses — especially when security incidents are not reported to authorities or customers and take an excessive amount of time to contain — prompted the EU to launch the General Data Protection Regulation (GDPR) act, which imposes stiff penalties for companies that fail to secure data in a reasonable fashion.
IBM’s Chief Privacy Officer and European Data Protection Officer (DPO) Cristina Cabella believes that GDPR: “is introducing more accountability, more transparency, and those are elements [with] which we can develop trust with our customers which is the base for any relationship long-lasting in the future.”
Competitive and Drive
In the meantime enterprise players must tackle the security issues prompted by ongoing cyberattacks and new regulations by way of investment in new and better security solutions.
Siddharth Deshpande, research director at Gartner commented that: “Security leaders are striving to help their organisations securely use technology platforms to become more competitive and drive growth for the business.”
“Persisting skills shortages and regulatory changes like the EU’s Global Data Protection Regulation (GDPR) are driving continued growth in the security services market.”
By 2019, at least 30 percent of organisations are expected to invest in GDPR-related consulting and implementation services in order to become compliant with the new regulations.
As a result, the research agency estimates that worldwide spending on IT security solutions will reach at least $124 billion next year, an increase of 8.7 percent from 2018’s estimate of $114 billion.
Detection and Response
Gartner believes that detection and response capabilities, new regulations including GDPR, and digital business risks are common factors which are becoming the catalyst for increased expenditure.
Some of the security solutions sectors which will experience the biggest boosts in spending are security services, application security, and network security.
Spending on security services is expected to be worth $64.2 billion in 2019; the application security market is anticipated to reach $3 billion, and network security solutions spending is predicted to surge to $13.3 billion by the end of 2019.
While risk management and privacy concerns will also force digital transformation to take place in the enterprise over coming years, security as-a-service is anticipated to grow in popularity as a means to improve upon on-premise security deployments.
In particular, enterprises are expected to turn to cloud-based systems, such as security information and event management (SIEM), in order to protect corporate networks.
“On-premises deployments are still the most popular, but cloud-delivered security is becoming the preferred delivery model for a number of technologies,” said Deshpande.