Lack of sufficient funds to address cybersecurity threats prevalent among half of businesses, reveals research
In a recent study by the Neustar International Security Council, it was revealed that economic uncertainties are impacting cybersecurity budgets across various sectors and geographical regions. The report, based on the responses of 304 senior-level professionals, sheds light on the concerns and challenges faced by organisations in maintaining adequate cybersecurity measures.
The report found that more than two-thirds of respondents agreed that constraints on their budgets would limit their ability to respond to threats. This sentiment is driven by the macroeconomic issues that are causing spending cuts across all sectors, as stated by Carlos Morales, SVP of solutions at Neustar Security Services.
One strategy that companies are adopting to manage costs is consolidating the number of security vendors they work with. While this move is aimed at reducing complexity, cost savings have also been a significant factor.
However, this consolidation comes at a cost. More than half of the respondents are concerned about the rising number of attacks, and 60% identify the rising sophistication of attacks as the current risk. The more geographically widespread deployment of workers, a result of long-term hybrid work, has made it more challenging to secure the workplace from outside threats.
The study also reveals that only about half of the companies are receiving the necessary budgets to meet their current cybersecurity requirements. This could expose businesses to more cyber risk, as 44% of companies that expect budget stagnation or cuts believe this to be the case.
In an uncertain economic environment, major businesses in the U.S. and abroad are cutting budgets. High-profile companies like Amazon, Microsoft, Alphabet, and others have announced thousands of job cuts in recent weeks. In November, Palo Alto Networks reported that customers are giving potential security deals more scrutiny.
In response to these challenges, companies are increasingly turning to managed service providers to provide cloud-based security. According to the Neustar report from autumn 2022, managed service providers such as IBM, Accenture, and Deloitte increasingly adopted cloud-based security solutions during that period.
The study conducted during fall 2022 reflects some issues raised by cybersecurity providers about customer spending decisions. Less than one-third of IT and security professionals expect their cybersecurity budgets to remain the same this year, while 6% expect them to fall.
Despite the budgetary constraints, the report offers a glimmer of hope. The Neustar report found that 4 in 5 executives believe the C-suite and board of directors at their organizations understand the existing threat levels. This understanding is crucial in navigating the challenging cybersecurity landscape and ensuring adequate resources are allocated to protect businesses from cyber threats.
