Top 5 Cybersecurity Budgeting Trends for 2022
Cybersecurity has grown to represent a significant portion of a business’s budget. In fact, Gartner estimates that over the next 5 years companies will spend $1.75 trillion on cybersecurity. This is a considerable increase for an industry that was only worth $3.5 billion in 2004.
One contributing factor to this abnormal spike in spending is due to COVID-19 and the remote work trend. Additionally, new regulations for stricter data privacy and security have forced many businesses to evaluate their policies.
From 2020 to 2021, cybersecurity spending increased exponentially. Data security spending increased by almost 20%, whereas cloud security increased by over 40%.
This article will take a look at the current trends in cybersecurity and discuss how businesses might allocate their cybersecurity budgets to ensure they are properly protected from cyberattacks in 2022.
1. Mobile Security
In 2021 there was a considerable increase in spending to secure devices outside of company premises. It is predicted that by the end of 2024, mobile security spending will exceed $7.2 billion.
This increase is primarily fueled by the remote working trend. This trend has become an integral part of most businesses over the last year and a half. Whether it’s employees working from home or using public Wi-Fi, cybersecurity must extend beyond a company’s local network.
Additionally, the prevalence of external network devices has increased significantly over the last decade. Smartphones have become an integral part of life, therefore including mobile security in the corporate cybersecurity policy is now critical for most organizations. In fact, the lack of mobile security is predicted to be one of the fastest-growing threats in cybersecurity, because of the potential vulnerabilities it brings.
According to Analysys Mason, “We forecast that spend on mobile security will grow at 17% CAGR between 2019 and 2025 to reach almost USD13 billion.” Mobile security represents a growing investment within the cybersecurity space. Corporations that haven’t incorporated mobile security policy could be leaving potential vulnerabilities and exploits for cybercriminals to take advantage of.
2. Incident Response
A healthy budget for cybersecurity does not equal 100% immunity. It was reported that in 2021 the overall cost of a data breach had increased to its highest average at $4.24 million. This represents a 10% increase from the previous year.
New software and updates can introduce additional vulnerabilities into a secure network. Even new employees represent potential safety issues. On average, a data breach incident can cost a Canadian firm $6.75 million, which is higher than the world average.
It’s never worth it to leave incident response out of a cybersecurity budget. Rather, it’s safer and more economical for a business to reserve room in the budget in the event that an attack happens. Downtime can cost companies a considerable amount of money in potential revenue. Having a recovery plan will ensure things get back on track quickly.
As the old Lee Child saying goes, “Hope for the best, plan for the worst.”
3. Full-time Cybersecurity Staff
Spending on inhouse cybersecurity is a growing trend. PwC discovered that more than 50% of companies intend on hiring full-time staff just for handling cybersecurity.
This is especially important in companies that maintain remote employees. It was found that companies that had more than half of their company working remotely took almost two months longer to find and contain security breaches.
Remote work has become an integral part of the work environment and it may be here to stay. With the added liabilities and potential security vulnerabilities, full-time cybersecurity staff in house or outsourced through managed IT services providers, may be non-negotiable.
4. Employee Training
Because corporations rely heavily on emails, it’s never been more critical to have employees trained to avoid cyberattacks. According to Proofpoint from the Ponemon Institute, the average phishing attack costs a large company almost $15 million.
However, employee training comes at a cost. The cost of employee training can be hundreds of dollars per employee. However, when the risk and ROI (return on investment) is taken into consideration, it’s definitely worth the room in the budget. In fact, the return that an average-sized company would get from the initial training investment is almost 70%, according to MarketScreener.
5. Cloud Security
Businesses are migrating to the cloud more than ever, and while the cloud provides a wide variety of advantages and benefits, it also introduces new vulnerabilities. Improperly set up cloud servers are prime targets for data breaches that can cost companies $3.86 million on average. That’s precisely why companies are investing in the proper setup and security for their cloud servers.
One of the biggest vulnerabilities comes from miscommunications between the service provider and the client. In most cases, cloud service providers clearly outline what their security covers. From that point, it’s the client’s responsibility to ensure everything beyond that is secured.
Unfortunately, security gaps are quite common and can lead to data theft, ransomware attacks, or other cyberattacks. So, while moving to the cloud can offer considerable cost benefits, businesses should reallocate some of those savings to cybersecurity.
As the technological landscape continues to evolve, and governmental regulations become more stringent, businesses are steadily growing their cybersecurity budget. Especially for companies in North America which have the most expensive average cost of lost or stolen records, it has become vital to ensure all data is securely protected.
However, it can be difficult to decide where best to allocate funds for cybersecurity. That’s because this is highly dependent on the company and its needs. For instance, a company with a higher turnover of employees may want to invest more in employee training. Whereas a company with a large remote workforce will want to ensure the network is protected using VPNs and comprehensive cloud security.
Managed IT Services providers such as Outsource IT are an excellent resource for businesses looking to strengthen their cybersecurity and determine what to focus on. With decades of experience and in-depth knowledge on the many new security threats, Outsource IT can help organizations protect their network and keep their data safe within budget.
For more information, contact an Outsource IT account manager to learn how we can assist any organization looking to invest in cybersecurity and IT in general.