Australian MSPs to boost cybersecurity investment in 2024

A recent survey orchestrated by WatchGuard Technologies at the Leader Expo events in Sydney and Melbourne reveals that more than two-thirds (69%) of Australian managed service providers (MSPs) and resellers are forecasting an increase in cybersecurity investment by their customers in the upcoming financial year. The survey, which gathered insights from 84 respondents, also indicated that 51 per cent of these professionals believe generative AI will open up new opportunities for work.

When respondents were asked to specify where this increased cybersecurity spending would be allocated, the highest demand was for high-performance firewalls, as indicated by 63 per cent of participants. Network security monitoring tools followed closely, with 51 per cent of respondents highlighting their necessity. Furthermore, 41 per cent forecast continued investment in remote employee security tools, emphasising the ongoing shift to hybrid work environments in Australian businesses.

Anthony Daniel, Regional Director for Australia, New Zealand, and Pacific Islands at WatchGuard Technologies, commented on the findings, "This data shows security budgets will be directed to areas that can deliver significant and measurable benefits. While paying attention to emerging technologies such as AI, security teams are not turning their backs on the fundamentals needed to create an effective security structure capable of protecting their key IT assets."

Regarding the cybersecurity threats anticipated over the next 12 months, a substantial 75 per cent of survey respondents identified data breaches and data loss as significant concerns. Other threats cited included identity-based threats (45%), ransomware (38%), a lack of relevant technical skills to counter cybersecurity threats (36%), and the rising popularity of generative AI (31%).

The driving forces behind these cybersecurity threats include an increasingly sophisticated threat landscape (62%), cyber attacks on remote workers (39%), and the emergence of generative AI technology (34%). Currently, 54 per cent of respondents are experiencing social engineering attacks targeted at their customers' employees. Additionally, nearly one in three advises that credential stuffing and account takeovers are prevailing cyber attacks.

"It's clear that the potential damage and loss caused by data breaches is widely understood," Daniel stated. "It's also interesting that generative AI is becoming a major perceived threat. It will also be important to constantly monitor the threat landscape to ensure that the tools that are in place are capable of providing the level of protection that is required. Effective security has never been a set-and-forget activity and this will continue to be the case in the new financial year and beyond."

Despite the optimism surrounding generative AI's potential for work opportunities, the survey showed a more tempered view on its impact on productivity and innovation. Only 10 per cent of respondents believe that generative AI will enhance productivity, and just 16 per cent think it will encourage innovation.

Daniel further elaborated on the role of AI in cybersecurity, saying, "AI has much to offer security teams who simply cannot keep up with the velocity of today's cyber attacks. As with our newly launched network detection and response product, WatchGuard ThreatSync+ NDR, an advanced AI detection engine is used to automate and simplify the continuous monitoring, detection, and remediation of threats. Using AI to rapidly identify the most serious threats helps security teams find threats they might have otherwise missed and focus on the most serious threats to their business."