CYBERSECURITY’S FOUR LATEST TRENDS: SURVEY RESULTS AND INSIGHTS

In the ever-evolving landscape of cyber threats, companies are often confronted with a wide selection of cybersecurity solutions and services to help reduce risk to their businesses. As threats grow, so do the vendors and solutions in the market. This rapid vendor proliferation is not only leading to functional overlap and obsolescence but is also requiring decision makers to balance risk assessments and budget allocations to meet their cybersecurity needs.

Given the dynamic nature of the cybersecurity market, A&M conducted a survey of more than 340 decision makers and key influencers of their companies’ cybersecurity strategies. This included c-suite executives, senior management and security technology leaders from companies across all major industries and geographies who shared insights on their cybersecurity budgeting practices, technology solutions and cyber-related concerns. The research, public company analysis, and our market experience has culminated into several main themes. These and other results are as follow:

1. Revenue and Budgets Are Growing, But at a Slower Rate: Although the market is still growing at healthy rates, it is starting to show signs of slowing as companies mature their cyber capabilities and look to optimize operations.
2. R&D Investments Need To Be Assessed: Cybersecurity tech provider spending on R&D has been high given past growth. With shifts in customer needs, and slowing growth, R&D resources need to be more focused on core offerings.
3. Overlapping Solutions Have Flooded the Market: There are 1000s of cyber companies in the market and customers are looking for consolidated solutions and platforms, further driving the need for consolidation.
4. AI Presents New Threats and New Solutions: AI is impacting many markets, including cybersecurity. The impact will be felt from both the threats faced and the solutions used to detect and respond.

How A&M Can Help?

As cybersecurity revenue growth rates slow, R&D investments increase, consolidation opportunities present themselves and AI evolves, companies and vendors have opportunities — and challenges — they must address if they wish to triumph.

Alvarez & Marsal’s Software, Technology & Services practice within the Private Equity Performance Improvement group has hands-on experience with the cybersecurity sector and the trends facing it. Our teams support clients with the consideration, evaluation and implementation of financial targets, portfolio investments and go-to-market approaches as customer needs change and the sector evolves.