Enterprise and government spending for cybersecurity products, managed services, and professional services will be substantial over the course of the next few years. Cumulative global spending on cybersecurity products and services will exceed one trillion US dollars over the next five years with multiple trillions of dollars in cybercrime damages realized through 2030. Accordingly, we see damage control and mitigation solutions as a critical portion of the cybersecurity market.
With high-profile events such as alleged espionage on the part of Huawei, cybersecurity is also getting extreme attention at the government level. By way of example, The Internet of Things (IoT) Cybersecurity Improvement Act of 2019 is being introduced in the Senate by the U.S. Among other areas, the Act is intended to address IoT device security relative to Secure Development, Identity management, Patching, and Configuration Management. Quoting opinions from market leaders (such as Cloudflare, Symantec, VMware, and others), the bill asserts a desperate need for cybersecurity market regulation.
The bill recognizes that there could minimally be some fundamental security improvements in areas such as default device passwords with supporting material citing, “Sometimes shipped with factory-set, hard-coded passwords and oftentimes unable to be updated or patched, IoT devices can represent a weak point in a network’s security, leaving the rest of the network vulnerable to attack.”
At the network services provider level, the cybersecurity market is heating up as carriers realize that the advent of 5G and other network advances will increase network complexity, which will translate into increasingly more potential vulnerability areas.
Accordingly, communication service providers are both working unilaterally as well as banding together to address common cybersecurity concern areas. By way of example, AT&T recently became the first North American carrier to join the Global Telco Security Alliance, which launched last year with founding members Etisalat, Singtel, SoftBank, and Telefónica.