More good news for security vendors

IT security and business continuity vendors are set for a windfall, according to IDC, as businesses finalise security plans that were first prompted by the September 11 attacks.

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By  Neil Denslow Published  October 31, 2002

IT security and business continuity vendors are set for a windfall, according to IDC, as businesses finalise security plans that were first prompted by the September 11 attacks.

The analyst house reports that immediately after the attacks, there was a surge in interest in IT security, but companies didn’t invest immediately because of cost concerns. However, this ‘re-think’ phase now seems to be ending, with corporations set to shell out US$155 billion on IT security and business continuity solutions in 2006, more than doubling 2001’s figure of US$66 billion.

“Corporate buyers were confronted with a difficult situation — their understanding of the security need was high but their ability to quantify the risk of a security threat was low,” says John F. Gantz, chief research officer & senior vice president, IDC.

“This uncertainty about the risk caused many companies to delay their purchase decisions. The result was a gap between the need for security and corporate investments in security solutions,” he adds.

Despite the spending delays, security remains the top priority for 40% of IT managers. This was also the only area in IDC’s survey in which more managers expected spending to rise than fall.

This focus on security will mean US$80 billion in sales in 2002. Spending on IT security/business continuity will also grow at twice the rate of IT spending in general. IDC expects that the spending will be almost evenly split between infrastructure, business continuity and information security. However, spending on business continuity products & services will account for a slightly larger part of the market.

“The current market is a confusing mosaic of undifferentiated products, services and companies offering solutions,” notes Gantz.

“This confusion remains an inhibitor to corporate spending. The companies that will come out ahead in this environment are those that work closely with their clients to develop realistic risk assessments and plans that provide the most protection within the budget available,” he contends.

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