The security industry has only been moving forward in past few years and doesn’t seem to slow down any time soon. From big profits for solution providers to tackling emerging threats to mega acquisitions; the security industry is evolving and presenting an exciting stream of news and happenings. Today, we’ve compiled a list of five major trends as seen so far this year.
- Integration:This year saw the amalgamation of multiple competitive vendors, especially the ones based around the cloud security market. Vendors such as LightCyber, Blue Coat Systemsand Skyhigh Networks, launched technology partner programs to provide ready-made integrations to complementary security solutions. They said the integrations help partners drive more value across their security line cards and, from there, develop custom services and solutions packages around the technologies, reported CRN.
2. Acquisitions: It wouldn’t be wrong to say that 2016 was a year of consolidation in the security industry. One of the biggest deals so far is the $4.65 billion acquisition of Blue Coat Systems by Symantec. While others include Carbon Black acquiring Confer, Avast Software acquiring AVG, private equity acquiring Dell Software, private equity acquiring Ping Identity, and Optiv making three acquisitions.
3. Government involvement: Since 2015, policy makers have shown a new found interest in the cybersecurity market. Debates re-ignited around encryption, data privacy, surveillance, information sharing and more. Those debates only grew more heated in 2016 so far, most notably culminating in a dispute over encryption between Apple and the FBI, in which the law enforcement organization tried to compel Apple to open an encrypted iPhone involved in the San Bernardino terrorist attack last year. While the FBI ultimately went around Apple by hacking the iPhone in question, according to CRN, solution providers say questions still remain about device security and the extent of influence the government can have over a private sector vendor.
4. Biggest threat-Ransomware: There has been a sharp increase in ransomware. According to research firm Gartner, companies paid out $209 million to ransomware attacks in the first quarter of 2016. This compares with $24 million in all of 2015. The figure below shows a typical ransomware attack process.
5. Predictions for growth: According to a recent report by Cybersecurity Ventures, global spending on security products and services will hit $1 trillion during the five-year period between 2017 and 2021. Founder and CEO of Cybersecurity Ventures Steve Morgan, stated “We anticipate 12-15 percent year-over-year growth through 2021, compared to the 8-10 percent projected over the next five years by several industry analysts. There are some corporations who have come forward with increased cybersecurity budgets.” J.P. Morgan Chase & Co.doubled its annual cybersecurity budget from $250 million to $500 million. Bank of America stated it has an unlimited budget when it comes to combating cybercrime. The U.S. government has increased its annual cybersecurity budget by 35%, going from $14 billion budgeted in 2016 to $19 billion in 2017. This is a sign of the times and there’s no end in sight. He added, “Incremental increases in cyber security spending are not enough. We expect businesses of all sizes and types, and governments globally, to double down on cyber protection.”
What other developments the security industry faces until the end of 2016 remain to be seen.
What are your predictions for the Cybersecurity and IT industry next year? Share your thoughts in the comments below.
Written by DFGR Research Team – www.dfgr-ltd.com