ChannelLife Australia logo
Industry insider news for Australia's technology resellers
Story image

Security spend accelerating: Who's spending and on what?

By Heather Wright
Mon 3 Apr 2017
FYI, this story is more than a year old

Companies around the world will be spending up on security in the next three years, with services accounting for more than 38% of the overall security spend, according to a new forecast from IDC.

The analyst firm is forecasting security technology spend to hit US$81.7 billion this year – up 8.2% on 2016 – with spend accelerating out to 2020 when IDC says revenues wll be nearly US$105 billion.

Eileen Smith, IDC program director for customer insights and analysis, says the rapid growth of digital transformation is putting pressure on companies across all industries to proactively invest in security to protect themselves against known and unknown threats.

“On a global basis, the banking, discrete manufacturing and federal/central government industries will spend the most on security hardware, software and services throughout the 2015-2020 forecast,” Smith says.

Combined, the three industries will account for more than 30% of global security spend this year, she says.

IDC says services – in the form of managed security services, integration services and consulting services – will account for nearly US$31.2 billion in spend this year.

Network security, comprising both hardware and software, will be the largest single category, at $15.2 billion, with endpoint security third largest at $10.2 billion.

Based on 2016 market share IDC says the network security will hold 18.4% of the overall market, with managed security services, 17.2%; endpoint security, 13.1%; integration services, 11.5%; and consulting services, 8.9%.

When it comes to what technologies companies are spending up on, IDC says the fastest growth will come from device vulnerability assessment software, which is forecast to see 16.0% compound annual growth rate, followed by software vulnerability assessment at 14.5% CAGR.

Managed security services (12.5% CAGR), user behavioural analytics (12.2% CAGR) and UTM (11.9%) round out the top five.

Large businesses – deemed by IDC to be those with more than 500 employees – will account for around two-thirds of the security spend throughout the forecast period, with IDC also expecting businesses with more than 1,000 employees to pass the $50 billion spending level come 2019.

“Small and medium businesses will also be a significant contributor to BDA spending with the remaining one-third of worldwide revenues coming from companies with fewer than 500 employees,” IDC says.

While IDC says banking, discrete manufacturing and federal/government industries will be the biggest spenders, the spend from other industries certainly isn’t to be scoffed at, with process manufacturing, professional services and telecommunications all accounting for more than $5 billion in spend each.

Healthcare, meanwhile is a key growth area, behind telecommunications and state/local government, with utilities and banking also seeing high CAGR.

And while the United States remains the largest market – followed by Western Europe and Asia Pacific, excluding Japan, it’s APeJ which continues to be the fastest growing region with a compound annual growth rate of 18.5% over the period.

Related stories
Top stories
Story image
Gaming
Sony releases a new gaming gear brand for PC gamers
Sony has unveiled INZONETM, a new gaming gear brand for PC gamers that makes gaming more immersive and offers greater gaming ability.
Story image
Artificial Intelligence
Dynatrace extends automatic release validation capabilities
Dynatrace has extended its platform release validation capabilities to improve user experience at every stage of the software development lifecycle.
Story image
Documentation
Adobe study finds lack of digital trust and utilisation in Australian Government agencies
New research commissioned by Adobe has revealed a significant lack of digital trust within Australian Government departments, along with the continued underutilisation of key digital processes.
Story image
Artificial Intelligence
Eight top DevSecOps trends to support IT innovation in 2022
The use of DevSecOps practices is growing, as it is increasingly seen as the best way to produce high-quality and secure code. So what are the current trends?
Story image
Oracle Cloud
Commvault, Oracle to deliver Metallic Data Management as a Service
"We are excited to partner with Commvault and enable our customers to restore and recover their most mission-critical cloud data."
Story image
MSP
Video: 10 Minute IT Jams - An update from CyberArk
Olly Stimpson joins us today to discuss the importance of MSP programmes and how MSP partners are experiencing success with CyberArk.
Story image
HP Inc
Firmware attacks significant threat in age of hybrid work
Changing workforce dynamics are creating new challenges for IT teams around firmware security, according to new research.
Story image
New Relic
New Relic looks to observability market with new partner programme
New Relic has announced the availability of New Relic Partner Stack, an enhanced programme expanding New Relic’s commitment to partners.
Story image
Robotics
Evonik relies on Getac F110 tablet to control autonomous robot
The aim of the project is to evaluate the practicality of an automated robotic maintenance and inspection solution in the chemical industry.
Story image
Gaming
Hands-on review: 16GB PNY XLR8 Gaming EPIC-X 3600MHz DDR4
PNY sent over its 16GB XLR8 Gaming EPIC-X 3600MHz CL16 DDR4 module kit for testing. The kit contains two 8GB dual-channel modules with RGB lighting.
Story image
Digital Transformation
Google Cloud launches new Digital Accelerator bundles for Aussie SMBs
The new bundles are designed to help Australian small and medium-sized businesses embrace digital transformation and take their businesses online.
Supply chain
Discover the 4 critical priorities for wholesale distribution businesses in FY23. Are you worried about how supply chain issues may affect your business in 2023?
Link image
Story image
Hybrid Cloud
HPE GreenLake advances hybrid cloud experience with new services
"The innovations unveiled today further build on our vision to provide the market with an unmatched platform to spur innovation and drive transformation.”
Story image
State Library of Victoria
State Library of Victoria entrusts Oracle support and security to Rimini Street
“Our finance team are very happy with the support and security that Rimini Street provides, which keeps our assets and our customers secure."
Productivity
Discover the 5 ways your ERP may be letting you down. Is your current system outdated, difficult to manage, and costing you a fortune?
Link image
Story image
Microsoft
SAS wins Microsoft ISV 2022 Partner of the Year award
"We formed the SAS and Microsoft strategic partnership with a shared goal of making it easier for customers to drive better decisions in the cloud."
Story image
Hybrid workforce
Why hybrid working is here to stay and how to ace it
Citrix's new report reveals hybrid workers are more productive and engaged at work than their office and completely remote counterparts.
Story image
Payroll
How New South Wales state departments achieved cloud migration success
State departments in New South Wales are heading to the cloud to achieve better workflow solutions, and one company is paving the way for their success.
Story image
Awards
Microsoft names A/NZ Partner of the Year award winners
The awards recognise partners across the globe for their innovative use of Microsoft technologies to help customers succeed.
Story image
Infrastructure
Oracle Cloud Infrastructure expands distributed cloud services
“Distributed cloud is the next evolution of cloud computing, and provides customers with more flexibility and control in how they deploy cloud resources."
Story image
Identity and Access Management
Ping Identity named a Leader in Access Management
Ping Identity has been named a leader in the 2022 KuppingerCole Leadership Compass report for Access Management. 
Story image
Citrix
The best ways to attract young talent during labour shortages
New research from Citrix reveals hybrid working and ventures into the metaverse are top of mind for Gen Z workers.
Story image
Manufacturing
Sutton Tools deploys Infor M3 CloudSuite for manufacturing
Sutton Tools has also implemented the Infor OS cloud operating platform, including Infor Intelligent Open Network and Mongoose.
Story image
Salesforce
Data crucial to capture shoppers' wallets post-COVID
First-party data strategies key to driving personalisation, customer satisfaction, and long-lasting relationships according to a new report.
Story image
Design
Hands-on review: Phillips Hue starter kit
The set-up was one of the simplest I have ever had to do. It is also where the products shine. I was able to connect the bridge, the three lightbulbs and the strip within 10 min.
Story image
Macquarie Data Centres
Macquarie deal to pioneer CO2-cutting data centre tech in Australia
Macquarie Data Centres has signed a multi-year deal with ResetData, an Australian first provider using Submer data centre technology. 
Project management
Discover the 4 crucial factors for choosing the right job-costing solution. Is your team struggling to cost jobs and keep projects running on budget?
Link image
Story image
Accounting
Four factors to consider when choosing the right job accounting solution
Progressive job-based businesses can achieve success by strengthening their ability to quantify every cost attributable to the delivery of an outcome for a customer.
Story image
Hybrid Cloud
Advent One acquires Layer 8 Networks, complements hybrid cloud offering
The acquisition comes at a time of surging demand in hybrid cloud, network virtualisation and network security.
Story image
Retail
Australia Post Online Retail Industry Awards finalists for 2022 announced
Finalists have been announced for this year's 2022 Australia Post Online Retail Industry Awards (ORIAS Awards), recognising the achievements of online retailers in Australia.
Story image
Digital Fingerprint
Decline in counterfeit cherries after digital fingerprinting
Reid Fruits says there’s been a dramatic decline in counterfeit products for its cherries over the past three export seasons to Asia because of digital fingerprinting.
Story image
Cyber Criminal
Identity and access: the fight is on
Blue team defenders are used to protecting our data, applications, and users with access controls and other security mechanisms, which is why attacks like this are especially challenging when they target identity and access control systems.
Story image
Aspire
NEC expands Open RAN ecosystem with Aspire Tech acquisition
With its agreement to acquire Aspire Technology, NEC Corporation has further increased its capacity to deliver End-to-End Open RAN ecosystems.
Story image
Enterprise Resource Planning / ERP
Five ways your ERP is letting you down and why its time for a change
Wiise explains while moving to a new system may seem daunting, the truth is that legacy systems could be holding your business back.
Story image
Civil Defence
OutSystems platform chosen as part of ADF contract
"To be included in this project is a reflection of our ability to deliver secure, modern digital outcomes for defence at an incredible pace."
Story image
Dicker Data
EXCLUSIVE: Why women in IT makes good business sense - Dicker Data
The Federal government wants to bolster female participation in the tech industry to at least 40% by 2030. Here's how one homegrown Australian company has already reached that goal.
Story image
Data Protection
Five signs your business is ready to move to the cloud
Many organisations are thinking about moving to the cloud. But what are the signs you are ready, and what are the reasons to move?
Story image
Samsung
Monitors are an excellent incentive for getting employees back
The pandemic has taught us that hybrid working is a lot easier than we would’ve thought, so how can the office be made to feel as comfortable as home? The answer could be staring you in the face right now.
Story image
Internet of Things
ManageEngine wins big in IDC MarketScape assessment
ManageEngine's Endpoint Central service has been recognised as a leader by IDC MarketScape in several categories including Internet of Things device deployments and UEM software for SMEs.
Story image
Wiise
Four things wholesale distributors need to consider for FY2023
In a post-pandemic world, there are many things for a distribution business to juggle. ERP solutions company Wiise narrows down what companies should focus on.
Digital Transformation
Discover the 5 signs your business is ready for a cloud-based ERP. Is your business being left behind as more of your competitors switch to the cloud?
Link image
Story image
Low-code
Appian unveils low-code certification program in Australia
Appian has announced a program to provide the next generation of low-code developers with access to education on the subject and certification to foster career opportunities.
Story image
Cybersecurity
Tech and data’s role in the changing face of compliance
Accenture's study found that 93% of respondents agree or strongly agree new technologies such as AI and cloud make compliance easier.
Story image
Microsoft
ASI Solutions named finalist of Microsoft Surface Partner of the Year
"ASI Solutions has a strong Microsoft focus, building value by helping customers maximise investment in modern workplace solutions."