Global Security Spending to Top $86.4bn This Year

Global Security Spending to Top $86.4bn This Year

Worldwide spending on information security products and services will reach $86.4 billion in 2017, an increase of 7% over 2016, with that amount expected to grow to $93 billion in 2018, according to the latest forecast from Gartner.

Security testing, the GDPR and the rise of managed services will all contribute to this.

Within the infrastructure protection segment, Gartner forecasts fast growth in the security testing market (albeit from a small base), due to continued data breaches and growing demands for application security testing as part of DevOps. Spending on emerging application security testing tools, particularly interactive application security testing (IAST), will contribute to the growth of this segment through 2021.

Security services will continue to be the fastest growing segment, especially IT outsourcing, consulting and implementation services. However, the firm said that hardware support services will see growth slowing, due to the adoption of virtual appliances, public cloud and software as a service (SaaS) editions of security solutions, which reduces the need for attached hardware support overall.

"However, improving security is not just about spending on new technologies,” said Sid Deshpande, principal research analyst at Gartner. “As seen in the recent spate of global security incidents, doing the basics right has never been more important. Organizations can improve their security posture significantly just by addressing basic security and risk related hygiene elements like threat centric vulnerability management, centralized log management, internal network segmentation, backups and system hardening.”

The report also found that the EU General Data Protection Regulation (GDPR) has created renewed interest, and will drive 65% of data loss prevention (DLP) buying decisions today through 2018. The GDPR will have a global effect since multinationals will also need to adhere to the new law.

Gartner found that while organizations are working toward strengthening their knowledge of the regulation, those with some form of DLP already implemented are determining what additional capabilities they need to invest in (specifically, integrated DLP such as data classification, data masking and data discovery). In addition, organizations that do not already have strong DLP in place are looking to increase their capabilities.

"Rising awareness among CEOs and boards of directors about the business impact of security incidents and an evolving regulatory landscape have led to continued spending on security products and services," said Deshpande.

And finally, to deal with the complexity of designing, building and operating a mature security program in a short space of time, Gartner found that many large organizations are looking to security consulting and ITO providers that offer customizable delivery components that are sold with managed security service (MSS). By 2020, 40% of all contracts will be bundled with other MSS security services and broader IT outsourcing (ITO) projects, up from 20% today.

As ITO providers and security consulting firms improve the maturity of the MSS they offer, customers will have a much broader range of bundling and service packaging options through which to consume MSS offerings. The large contract sizes associated with ITO and security outsourcing deals will drive significant growth for the MSS market through 2020.

Source: Information Security Magazine