The recent wave of cyber attacks that marked the start of 2015 have technology executives opening their wallets. Seventy-five percent of technology executives expect their companies to spend 1 – 5% of their revenue on IT security over the next 12 months, according to the annual Technology Industry Business Outlook survey from KPMG, LLC. At the same time, 23 percent of these executives surveyed indicated that their company was the victim of a security breach within the past 12 months.
Cyber attacks spur investments in IT security technology and expertise
The KPMG technology survey queried 111 U.S.-based technology executives in April, 2015. The number of technology executives planning to increase their IT security spend represents a 10% jump from 2014. Approximately 17% of respondent said they expect their companies to spend less that 1% of revenue on security, while 9% indicated that their firms could spend more than 5%. While some of the money would be allocated to new security technology, resources would also be earmarked for recruiting and hiring security talent. The latter may be easier said than done in a hot technology market that is acutely aware of the impact of a data breach. The Wall Street Journal reports that the search for CISOs has become a seller’s market, with some industries such as banking and healthcare paying more than a $1 million in salary to qualified security chiefs.
Security is biggest challenge in adopting cloud and mobile technologies
KPMG’s survey also found that executives were broadening their technology portfolios. In addition to cloud computing and mobile technologies, healthcare IT, devices, applications, data and analytics, digital media, security and the Internet of Things (IoT) joined their list of revenue drivers. While most technology executives understand the need to adopt cloud and mobile technologies, they list security concerns as the biggest challenge in adopting them.
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