Security spending continues to rise

IDC reports that worldwide spending on security and business continuity will hit US$116 billion by 2007 as ongoing threats from hackers, viruses, and worms continue to make security a top priority for businesses.

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By  Matthew Southwell Published  September 28, 2003

Ongoing threats from hackers, viruses, and worms continue to make security a top priority for IT and business professionals alike, according to IDC. As such, the analyst house expects worldwide spending on security and business continuity to grow twice as fast as IT spending over the next several years, reaching more than US$116 billion by 2007.

"Corporate spending on security and business continuity has been held back by two factors - uncertainty about the severity of risk posed by security threats and ongoing budget austerity," says John Gantz, chief research officer & senior vice president at IDC.

"However, any scepticism about the potential consequences of a security breach is fading fast as enterprises seek to improve their ability to manage organisational risk," he adds.

Although spending decisions have been delayed, corporate security remains the number one priority of IT professionals. As such, 40% of IT managers surveyed by IDC in July 2003 rated security as their highest priority.

According to IDC, this focus on improving enterprise security will cause spending on security and business continuity products to surpass US$70 billion by the end of 2003. Although much of this spending will be directed toward immediate security needs, growth will be sustained by the security demands of privacy regulations, including HIPAA and the Gramm-Leach Bliley Act (GLBA).

IDC expects spending on hardware, software, and services to be relatively uniform throughout the forecast period.

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