Security Expenditure Will Strike $96 Billion in 2018, as Forecasted by Gartner
Organizations face so much security challenges which result in a hike in the cost of regulation, awareness of the threat, as well as the development of an advanced business strategy. Gartner, Inc made an estimation of the total expenditure incurred by organizations for security to a whopping $96.3 billion in 2018, which represents an increase of 8 percent as compared to 2017 estimation.
Cyber-attack such as the WannaCry and NotPetya have a massive effect on the expenditure of the organizations on the ground that these attacks can have negative effects for as long as 3 years. However, the spending on security recuperation is determined by the response of the organization in battling security interruption.
The Gartner’s 2016 security buying behavior survey carried out indicated that the organization who rated security risk as the main motivation for their overall expenditure on security was 53 percent. However, of the 53 percent, a greater percentage claimed that a breach in security it the major factor influencing the total security expenditure of the firm.
Some of the segments of the security services which will bring about a development in the sector include IT outsourcing and security data and occasion administration (SIEM) and security testing.
With regulations such as the Health Insurance Portability and Accountability Act, National Institute of Standards and Technology, and Overseas Citizenship of India) privacy of data and regulations has been structured to regulate the expenditure on security.
Gartner believes that since the rate of security breaches is alarming, in excess of 60 percent of organizations will drive resources into sophisticated security tools such as the data-centric audit and encryption, data loss prevention, by 2020. This is far above the 35 percent recorded today.
Consulting is the first security spending segment. Shortage in technical operators has pushed several organizations to go out and outsource for top-notch security consultant, statistics recorded that a total of $18.5 billion, will be diverted into security outsourcing services by 2018 which represent an 11 percent increase from 2017. Another segment that requires an outrageous security spending is the IT outsourcing segment.
The total expenditure by organization on security outsourcing is predicted by Gartner to reach
75 percent of the initial spending on security software and hardware products as against the 63 percent recorded in 2016.
Another aspect in which expenditure on security is been shifted to is the detection and response. An increase in the response to security incidents has massively influenced the advent of technology such as endpoint detection and response, as well as the user entity and behavior analytics to interrupt the old and traditional system such as the SIEM.