This seismic increase in cybersecurity spending is not only due to the SolarWinds hacks, but also due to the pandemic. Wedbush Senior Tech Analyst Dan Ives makes some great points in describing the components of this incredible predicted growth. The potential for this growth is not much of a stretch given the growth we have seen in the security sector before the pandemic given high-profile breaches and ransomware and then during the pandemic with remote work, remote learning, telehealth and the rush to the cloud. So, given the uncertain future regarding ransomware, breaches and the pandemic, one can extrapolate and believe Dan’s predictions.
Below as some other important takeaways from the Business Insider article by and Wedbush Senior Tech Analyst Dan Ives:
“Anticipating an acceleration of cybersecurity spending for 2021 as more governments and businesses work from home and adopt cloud technology.”
Other important takeaways from article and Wedbush Senior Tech Analyst Dan Ives:
“While the overall sector will see a lift, names specifically in advanced threat detection, #zerotrust architecture, #datasecurity, and identity security will see a near-term surge of budget allocation”
“$200 billion dollar growth opportunity in cloud security ‘up for grabs’ over the next five years for those vendors that have the solution sets to protect critical cloud deployments and seamlessly work with on premise and public/ hybrid workloads through a unified and deep solution set”
“Currently, 33% of workloads use cloud technology, and this could move to 55% by 2022 according to Ives, leading to a large increase in spending in the cyber industry.”While WFH applications remain front and center, the exploding endpoints and volume of data being accessed from remote employees have caught CIOs flat- footed to protect this next step of the cloud shift with cyber security names playing a vital role in this strategic endeavor over the coming year,” Ives added.
Cybersecurity stocks will see further acceleration in 2021 as more companies ramp up protection following the SolarWinds hack” – Dan Ives
? Read more in the article titled “Cybersecurity stocks will see further acceleration in 2021 as more companies ramp up protection following the SolarWinds hack, says Wedbush” by Emily Graffeo at Business Insider