Used to be, worries about security were the top barrier for organizations considering the public cloud. No more.
Now not only data, but also cybersecurity itself is moving to the public cloud — and quickly.
New figures from market watcher Canalys, released earlier this week, show spending on cybersecurity solutions for public cloud and “as a service” growing by more than 45% in this year’s first quarter.
While these cloud-based solutions still represent a minority of total cybersec spending, their share of the market is growing, too. A year ago, they were a bit less than 14% of total cybersecurity spending. Now they’re up to nearly 18%, Canalys says.
Spending on traditional cybersecurity hardware and software still accounts for 75% of the market. But this spending is growing by a much slower 8% year-on-year.
Overall, the worldwide cybersecurity market delivered shipments in this year’s first quarter valued at $9.7 billion, according to Canalys. That’s up about 14% from the year-earlier quarter.
Yikes = more spending
The cybersecurity market shows no sign of slowing down. On the contrary, everything points up.
One big concern is the recent ransomware attacks in cities including Atlanta, Baltimore and Cleveland. Organizations are also eager to step up employee training, to teach workers how to detect and avoid phishing emails. Yet another growth area should be cybersecurity insurance.
Right now, just 5 companies account for about a third of all cybersecurity sales: Cisco, Palo Alto Networks, Symantec, Check Point and Fortinet. They shouldn’t be complacent, however. Canalys analyst Claudio Stahnke expects to see new competition from cybersec startups.
“As new threats emerge,” he explains, “more startups will emerge, adding to an already crowded market. Differentiation will be key, along with offering customers a choice of deployment and simplified licensing.”
The rising tide of cybersec spending should also raise the boats of channel partners. More than 90% of cybersec shipment value already comes through the channel, according to Canalys.
The next growth area could be SMBs that think they’re too small to attract cybercrooks, but in fact are perfect targets.
“Hackers will see to exploit any vulnerabilities,” Stahnke says.
And with more cybersec moving to the public cloud, that could bring prices and spending models in line with what SMBs not only need, but also can afford.