COVID-19 has changed the way that most business owners look at a dollar. For months, businesses have been making strategic budget cuts to try to stay afloat. Cybersecurity has been the ultimate growth industry over the past several years, but in the face of the pandemic, the market for these products and services is seeing substantial retraction. In fact, Gartner estimates that in 2020, the cybersecurity industry will shrink by almost $7 billion. Today, we’ll take a look at the cybersecurity market and why it is important not to slow your cybersecurity spending if you can help it.
The Cybersecurity Market
As more people lean on technology, the cybersecurity industry has been a major beneficiary. The cybersecurity market was estimated to hit $170 billion in 2020 with the United States and Europe making up for nearly 70 percent of all spending in the area. The areas that have seen the most growth recently are the SIEM/security analytics market, threat intelligence, mobile security, and cloud security. In fact, cloud security has seen a 50 percent increase since 2016.
Why is all this necessary? Simple. Cyberattacks evolve as fast as (or faster than) the security systems in place to thwart them. This has led to massive growth for the better part of the past decade. Since cyberattacks cost businesses nearly $500 billion a year, the large market growth is justified. New sectors like FinTech have pushed cybersecurity companies to innovate faster than ever.
The COVID-19 Effect
The era of ridiculous cybersecurity spending was on its way out already with business owners and decision makers finding that the return on their security investments weren’t strong enough to facilitate limitless spending initiatives. What nobody who works in cybersecurity saw coming was a global pandemic that would force CIOs to cut into their cybersecurity budgets.
That’s not to say that businesses weren’t heavily investing in cybersecurity. They absolutely were, and are, but with the only metric to compare it against is a full-fledged data breach, notoriously optimistic executives see the value in spending that money on other things; and; make no mistake about it, until something terrible happens, they will look correct in appropriating those funds from cybersecurity to some other use.
Cybersecurity is the Last Technology You Should Cut
Without strong cybersecurity protections, your business has an even smaller chance to survive an already risky situation. It doesn’t take much for an attack or breach to put a healthy business out of commission, cause layoffs, or at the very least, put financial strain on an organization. If it were to happen now, it will sting even more.
Let’s talk about your cybersecurity, and how to get the most protection for what you have. Give us a call at (906) 786-0057.