If IT spending is slowing, will business leaders follow a similar approach for cybersecurity budgets? Probably not. Gartner predicts that end-user spending on both security technology and services will see an annual growth rate of 11% over the next four years. And the market is anticipated to reach $267.3 billion in 2026.
Many security professionals agree that security spending cuts aren’t likely. Given the current threat landscape, strong security has quickly become a business imperative. Security has become the highest priority investment area for many organizations — even outranking cloud computing.
IT Budget Crunch
For years, cloud services have been one of the largest and most stable sources of growth for the tech industry. This was notable during the pandemic as more people connected from home. Now, investors are concerned about whether there is a glut in capacity that will lead to spending cuts. While companies deal with rising inflation, interest rate increases have also tightened consumer demand. For example, growth in Amazon Web Services (AWS), the firm’s massive cloud unit serving enterprise, has drifted down consistently in the past four quarters.
“The AWS slowdown is a clear sign that businesses are beginning to trim costs, so this will likely put more of a squeeze on Amazon’s bottom line in the coming quarters,” said Andrew Lipsman, principal analyst at Insider Intelligence.
Meanwhile, cybersecurity spending is extremely durable. Security is commonly shielded from budget cuts because of how closely it is tied to operational and reputational risk.
Security Strategy is Core Business Strategy
As cyber incidents increase in number and ..
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