News of data breaches and cybersecurity attacks constantly make headlines. This has forced businesses to increase their cybersecurity budgets. They realize that the cost of a data breach is also increasing, so it is better to increase the cybersecurity budget.
CIOs need to decide what portion of their IT budget should go to cybersecurity. Additionally, they also must justify the budget and prove that the investment is worth it because it delivers value to the business. In order to allocate the right amount for your cybersecurity budget, it is important for CIOs to understand the emerging trends and threats. This article will help them do that.
In this article, you will learn about seven cybersecurity trends that will impact your cybersecurity budget in 2020.
Size Determine the Budget
If you look at cybersecurity spending, you will see a mix trend. On one side there are large scale enterprises, which allocate millions of dollars for cybersecurity. On the other side of the spectrum are small and mid-size businesses who cut their cybersecurity expenditure, which makes them vulnerable to cybersecurity attacks.
According to Cybersecurity Ventures prediction, global cybersecurity spending will surpass $1 trillion mark for the first time in 2021, which is a sign that large businesses will take cybersecurity seriously. Unfortunately, small and mid-size businesses will do the exact opposite.
A survey conducted by Keeper security found that companies with 500 or less employees don’t have a dedicated cybersecurity team or even an incident response plan. What’s even worse is that only 7% CEO of SMBs believe that they are likely to be hit by a cyberattack. By downplaying the risk of cybersecurity attacks, these SMBs are living in the world of ignorance, which makes them a soft target for cyber attackers.
Justifying Budget Will Not Be Easy
As mentioned before, justifying your cybersecurity budget in front of board members might not be easy. Did you know why? Because it is hard to benchmark your cybersecurity budget. Before determining what percentage of your IT budget should go to cybersecurity, you need to focus on regulatory and compliance requirements and risk factors. More importantly,
In order to acquire more funds for upgrading hardware and software along with the architecture, you will have to highlight the benefits and value it will deliver for your company. For this, Chief Information Security Officers should work cohesively with Chief Operation Officers and Chief Human Resource Officers to measure the real benefits of cybersecurity investments to the enterprise.
Visibility and Alignment Will Be Key
The focus of CISOs will be on creating an integrated cybersecurity ecosystem so they identify cybersecurity threats in real time including insider threats. Moreover, this also allows them to implement a cybersecurity culture in the organization. CISOs will prioritize cybersecurity operations with IT through orchestration and automation. They will be more interested in developing cross platform visibility with the help of cybersecurity event analytics. CISOs will take advantage of user behavior analytics to curb insider threats.
Compliance and Business Risks
Growing compliance issues and business risks will bring CISOs closer to C-suite executives. Many CEOs believe that cybersecurity threats can halt their business growth. Due to this, many C-suite executives have started taking a keen interest in cybersecurity. In fact, board members are briefed about enterprise cybersecurity at the end of each quarter. Many executives still consider compliance and regulations as the main influencer determining your cybersecurity budget. The focus is on addressing business risk and make the right investments at the right time.
Popularity of Security Services
Many called 2019 a year for security services and they were right. Instead of investing in security software, businesses are using a major chunk of their cybersecurity budget on security services. This trend will continue in 2020 and beyond as 50% of the cybersecurity, budget goes to security services. The rise of ransomware attacks and other attacks that target files will force businesses to spend heavily on services like data encryption, backup and restore.
CEOs are worried about the wasted time and resources at work and CISOs can provide them the solution to his problem by accelerating digital transformation. It will remove friction from operations and increase productivity. More and more businesses will adopt secure DevOps and implement concepts like security by design.
What’s more, secure and smooth digital transformation will pave the way for the creation of richer digital services and enable businesses to deliver a much-improved customer experience. Many businesses have already jumped on the digital transformation bandwagon and reaping rich rewards from it too. Nike, Microsoft, and Disney are some of the best examples in this regard. These brands have literally turned the tables and came back from an all time low to reach the top of the mountain.
Two of the main reasons why the majority of cybersecurity budget will be allocated to services is privacy concerns and a shortage of talented individuals with the right skillset. Privacy regulations will account for 10% share of security service industry growth. Businesses will have to rely on third-party experts for identity and access management and data loss prevention to keep their sensitive data safe and sound whether it is stored on best dedicated servers or cloud. User reservations will continue to grow as they hear the news of data records being stolen. This will create a trust deficit amongst users and businesses will have to take steps that can help them win back user trust.
There is no denying that 2019 was a great year for the service industry as we saw an exponential rise in the popularity of cybersecurity services. We will see that trend continue in 2020 as well. Privacy concerns will continue to bother users and scare businesses while compliance and business risks will give business owners some sleepless nights. The focus of CISOs will be on implementing a transparent, integrated cybersecurity system, which gives them visibility so they can act in a timely manner. All of this will influence your cybersecurity budget in 2020.
Which cybersecurity trends do you think will create the biggest splash in 2020 and why? Let us know in the comments section below.