Skip to main content

A Global Exploration of IT Security Budget Trends

Chief Information Security Officers (CISOs) have updated their IT security plans for 2017, due to ongoing concerns about new threats. Worldwide, IT organizations currently spend an average of 5.6 percent of their IT budget on IT security, according to the latest market study by Gartner.

However, the study uncovered that security spending can range from 1 to 13 percent of an organization's overall IT budget.

"Clients want to know if what they are spending on information security is equivalent to others in their industry, geography and size of business in order to evaluate whether they are practicing due diligence in security and related programs," said Rob McMillan, research director at Gartner.

That said, Gartner analysts believe that comparisons with industry averages are of limited value. CISOs could be spending at the same level as the peer group, yet be spending on the wrong things and are therefore vulnerable.

IT Security Market Development

According to the Gartner assessment, vendors could benefit, because the majority of organizations will continue to use average IT security spending figures as a proxy for assessing their security posture through 2020.

Without the context of business requirements, risk tolerance and satisfaction levels, the metric of IT security spending, by itself, doesn't provide valid comparative information that should be used to allocate resources.

Moreover, IT spending statistics alone do not measure IT effectiveness. They're not a gauge of successful IT organizations. They simply provide a view of average costs, without regard to complexity or demand.

Any statistics on explicit security spending are inherently soft, because they understate the true magnitude of enterprise investments in IT security -- since security features are being incorporated into hardware, software, activities or initiatives not specifically dedicated to security.

That's why many organizations do not know their real security budget. It's partly because few cost accounting systems break out security as a separate line item, and many security-relevant processes are carried out by staff who are not devoted full-time to security.

Gartner also believes that, in most instances, the CISO does not have insight into security spending throughout the enterprise.  Moreover, the very secure organizations can spend less than average on security as a percentage of their IT budget.

The lowest-spending 20 percent are composed of two distinctly different types of organizations. Un-secure organizations that under-spend, and secure organizations that have implemented best practices for IT security that reduce the overall complexity of their IT infrastructure by limiting security vulnerabilities.

Outlook for IT Security Spending Trends

According to Gartner, organizations should be spending between 4 and 7 percent of their IT budgets on IT security -- lower in the range if they have mature systems, higher if they are wide open and at risk. This represents the budget under the control and responsibility of the CISO, and not the "real" or total budget.

To demonstrate due care in information security, organizations must also assess their risks and understand both the CISO's security budget and the "real" security budget found in the complicated range of accounts that may not capture all security spending.

"A CISO who has knowledge of all of the security functions taking place within the organization as well as those that are necessary but missing and the way in which those functions are funded, is likely to use indirectly funded functions to greater advantage," McMillan concluded.

Popular posts from this blog

Big Data Analytics Revenue to Reach $215.7 Billion

Across the globe, more leaders seek actionable insight from the customer data they've stored in huge data lakes. Worldwide spending on big data and business analytics (BDA) solutions is forecast to reach $215.7 billion in 2021 -- that's an increase of 10.1 percent over 2020, according to the latest worldwide market study by International Data Corporation (IDC). Moreover, BDA technology investment will likely gain momentum over the next five years as the global economy recovers from the COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA spending over the 2021-2025 forecast period will be 12.8 percent. Big Data Analytics Market Development "As executives seek solutions to enable better, faster decisions, we're seeing relatively healthy BDA spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance," said Jessica Goepfert, vice

Why Cloud Fuels Net-New Digital Business Growth

CEOs and Line of Business (LoB) leaders seek the fastest path to meaningful digital transformation advancement. Meanwhile, investment trends in cloud computing infrastructure continue to expand the capabilities, accelerating growth across all segments within the public cloud services market. According to the latest worldwide market study by Gartner, the four key trends are cloud ubiquity, regional cloud ecosystems, sustainability or carbon-intelligent cloud, and automated programmable cloud infrastructure. "The economic, organizational and societal impact of the pandemic will continue to serve as a catalyst for digital innovation and adoption of cloud services," said Henrique Cecci, senior research director at Gartner . "This is especially true for use cases such as collaboration, remote work, and new digital services to support a hybrid workforce." Global Cloud Computing Market Development Hybrid, multi-cloud and edge computing environments are growing and setting

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente