Security spending breaks 5% barrier

In 2003, more than 5% of the IT budget will be spent on security in most industries, according to Gartner Group. This will be the first time security spending has broken the 5% barrier.

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By  Neil Denslow Published  June 9, 2003

In 2003, more than 5% of the IT budget will be spent on security in most industries, according to Gartner Group. This will be the first time security spending has broken the 5% barrier.

This level of spending level means that security spending will have grown at a compound annual growth rate (CAGR) of 28% since 2001, while IT budgets have grown at a CAGR of just 6% over that same time period.

"The focus on critical infrastructure protection means that the government, utilities, transportation and energy sectors will be forced to spend more on security," says John Pescatore, vice president & research fellow at Gartner.

"In addition, increased enforcement of copyright laws and liability concerns will force universities to increase security spending. Those vertical industries will be the most attractive targets for security vendors," Pescatore adds.

While an overall increase in IT spending is happening, Gartner says this does not mean that security organisations can spend freely. In fact, enterprise security organisations will be pressured to control spending or face across-the-board cuts.

"Security spending can't continue to consume ever-increasing portions of the IT budget. No enterprise can afford to spend more on insurance than on new product development," says Pescatore. "By 2005, security groups that can't demonstrate security effectiveness metrics will experience flat to declining IT security funding."

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