It seems like every week there is a new data breach. Enterprise companies and fortune 500 corporations are getting thwarted by cyber attacks and unfortunately, crimes. Undoubtedly, cybersecurity is on the minds of everyone, including chief information officers (CIOs), IT consultants, consumers and of course investors too.
Nobody likes having to worry about having their information, much less their identity, stolen. Even worse, it can be worrisome for anyone who has had their credit card compromised or charged fraudulently. Most stake holders, especially credit card companies and companies like Raid Storage, would like to resolve these issues.
But, the hackers are just doing a great job. They are clearly one step ahead of IT security, cloud security, credit card security, point of sale security and almost any other type of data security out there. Clearly, the hackers created demand for better security. In fact, a partner at Greylock Partners, Asheem Chandna estimates that information technology budgets are spending 5 to 15 percent on security, up from 2 to 6 percent in the past decade. The result is an estimated $80 billion per year security industry that impacts the smallest businesses, like Greenpages, and huge corporations like Google.
What Is Data Security?
Data security is any process that protects information stored on digital devices. To protect the stored information, the devices are protected against unauthorized access, control or corruption. These measures or process make up the primary purpose of data security and should be taken very seriously, especially since the rise of internet banking.
Data Security Technology
Data security technologies have exploded with a ton of solutions to answer the industry demand. Cloud data protection, or CDP, services abound to encrypt sensitive business data before it goes to the cloud. Tokenization solutions substitute a token for sensitive data to protect consumers. A token is just the name given to a randomly generated value. In addition, big data encryption technology has been developed in response to the seemingly endless IT security threats for business, like Wintel. The explosion of these new data security solutions is good news for both businesses that use them and developers interested in breaking into the market.
Data Security Is Law
Many do not know that data security is the law of the land. There are particular legal obligations business owners have to protect sensitive data of employees and consumers. The FTC, or Federal Trade Commission, has a ton of free resources available for any size business to develop a sound security plan. These resources will teach you how to collect what you need, keep it secure and dispose of it safely. This will, in turn, help guarantee that you meet legal data protections obligations. Be sure to keep data safe, or else you are breaking the law.
Start Ups and Companies Fight To Keep Hackers Away
Then, it should be no surprise that last year a whopping $1.7 billion was invested into the cyber security industry, according to CB Insights. Nearly tripling the number of investments from 2009, investors are looking to Silicon Valley to solve the enterprise security threats of tomorrow. But, with all the digital break-ins this year alone, which was particularly problematic for gamesites, there is a long way to go.
While the dominating household security companies, like Symantec, look to partner for newer security technologies, they stand to make this largest impact. Since it is the existing corporate security technology providers that have the accounts already, they can have an immediate effect on mitigating data compromising attacks. The establish security firms definitely have the advantage of scale on their side, for now.
As the industry matures, it can take start ups a long while to grow to the same size as the established technology security giants. Although they may provide a high level of security too, it will take time for that security to be adopted by other IT customers. However, investors have a lot more to gain with start ups and capture new IT services market share.
Upgrades To Cloud Security
Although the security industry has grown by investment, the evolving technology of computing also please an interesting role. With hybrid cloud computing growing in popularity, we could see an upgrade and security on the cloud front. If providers could increase that security sufficiently, then we may see a shift away from hybrid cloud back to public cloud solutions. In addition, as companies like Dell continue to develop supercomputers, we could also see a push towards completely dedicated security environments (caused by the decreased need for cloud computing resources).
In either case, whether we see an increase in cloud computing or in-house IT infrastructures, we can count on security companies improving their products and services. With $1.7 billion invested into the space, we can only hope that our information will become more secure moving forward. Certainly, we would like to think so.
Knowing that the IT security industry is growing, do you feel safer with your information? Have you taken steps to help improve cyber security? Are you investing in companies like Bromium or Skyhigh Networks?
Image from http://uwf.edu/go/cybersecurity/