Is the bubble about to burst?
Cybersecurity is a big business and set to get bigger - spending on cybersecurity has increased so significantly in the past few years, in part due to regulation, but also due to complete and utter necessity, it is now on target to pass $133 billion by 2022. The Gartner Group has pointed out that in fact, it has outpaced IT spending.
We all want to be cyber-safe
CISOs are in extreme demand, security software and training is becoming an intrinsic part of the budget. Most of us are incredibly worried about the cybersecurity skills deficit nationwide.
All of the above are pure facts, however, the nervousness around cybersecurity vulnerabilities haven't convinced everyone, bubbles do burst and speculation is heating up that the cash cow of cybersecurity may be due for a little responsible oversight.
The Equifax Hack was called the largest in history. Equifax had to announce back in September 2017, that 147 million consumers had been involved in a data privacy scandal that rocked the credit world. Hackers have accessed names, social security numbers, credit cards, and driver licenses.
The litigation started almost immediately, but two years on, the worst cybersecurity incident ever has had very little effect on Equifax's profit margin. Equifax has made an almost complete recovery.
Sony, the company worth $70 billion got hit with damages of less than $100 million after their proprietary data was embarrassingly stolen and displayed for everyone to see in a backlash against the release of a comedy, highly unappreciated by North Korea called 'The Interview.'
Whilst the hack at the time felt both painful and frightening to the c suite at Sony, five years on and the effects were a fraction of those expected.
Part of this is due to incorrect coverage of cybersecurity incidents. Whilst the news focuses on the big numbers, the impact has very little connection to this. Whilst fear of zero-day attacks is widespread there are discrepancies as to the long term bottom line of security breaches.
The real 'pain' in both businesses and on an individual level is when companies can not recoup from wire fraud from a phishing attack or stories of individuals who simply can not reclaim their stolen identities after years of trying. These stories are of course, far less interesting than 85 million stolen credit details.
More and more solutions are being provided and the funding keeps coming, yet many cybersecurity solutions don't have the business acumen to survive, nor the audience that is ready to pay for it. Dave DeWalt, the former CEO of FireEye summed it up with: “We.. are just too many vendors and too few can be sustained.
That's the bad news, however, unlike the effect of too much hype in other industries, cybersecurity isn't quite the same. We aren't talking about binaries or Sub Prime.
An incredible opportunity
- There are many facets of cybersecurity that make it unique, starting with its contribution at a nationwide level. Both government and military, increasingly rely on cyber security expenditure which will fuel the market, particularly the employment sector, President Trump committed $115 billion for cybersecurity, just in the 2019 budget. this same scenario is played out across Europe, the United Kingdom, and the developed world.
- The ability to change. Cybersecurity is great like that, new forms of cybersecurity pop up every day as fast as anyone can say endpoints. Within the field of IoT, we can see cybersecurity is undergoing massive growth and innovation.
Whilst it is obvious that the cybersecurity market is producing a number of solutions and companies that are overvalued, it is equally true that we are globally more and software dependent and cybercrime is rising.
The cybersecurity market is unlikely to stop or burst at any point soon
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