Cybersecurity Spend Tops US$10 Billion in Q4 2018 as New Deployment Models Gain Traction

Palo Alto, California, Shanghai, Singapore and Reading, England
(ots/PRNewswire) - According to Canalys estimates, worldwide
cybersecurity spending exceeded US$10 billion for the first time in
Q4 2018. Organizations increased their level of protection against
malicious threats, while adhering to strengthening data compliance
regulations. Total cybersecurity investment in 2018 reached US$37
billion, up 9% from US$34 billion in 2017. Despite the high priority
many organizations give to protecting their data assets, endpoints,
networks, employees and customers, cybersecurity still only
represented 2% of total IT expenditure last year. This will
inevitably rise as new, more frequent and sophisticated threats
emerge, which will give vendors further growth opportunities. By
2020, total cybersecurity spend is expected to surpass US$42 billion
on an annual basis.

"Over the next two years, the transition in cybersecurity
deployment models will accelerate. Customers are changing their IT
buying behavior, with the adoption of public cloud, and flexible
consumption and subscription services," said Canalys Principal
Analyst Matthew Ball. Canalys data shows that in 2018 traditional
hardware and software deployment accounted for 82% of the
cybersecurity market. The remaining 18% was deployment of virtual
appliances and agents, procurement through public cloud marketplaces
and subscriptions to cybersecurity as a service.

By 2020, the proportion from traditional deployment models will
fall to 70% as newer ways of delivering cybersecurity solutions gain
traction. "Vendors will have to establish a diverse range of business
models to support this transition, as different products suit
different types of deployments. The key challenge to date for many
has been making the new models more channel-centric, and integrating
them with existing partner programs, especially customer transactions
via cloud marketplaces," Ball added. "This has recently been
addressed by some cloud marketplaces, allowing partners to offer
customized deals and pricing direct to customers, while tracking deal
registration and rebates."

"The leading cybersecurity vendors have embraced new deployment
models, with each in the process of transitioning their businesses to
more subscription-based revenue and increasing transactions via cloud
marketplaces," said Canalys Research Analyst Ketaki Borade. In Q4
2018, Cisco remained the overall worldwide market leader, growing its
share from the previous year to just under 10%. Palo Alto Networks
grew faster but remained in second place with 7%. Check Point,
Fortinet, IBM and Symantec each had 6% market share in Q4. Overall,
the top 10 cybersecurity vendors collectively represented 53% of
shipments during this period, with the next 20 accounting for 21%.

"Cisco, Palo Alto Networks, Barracuda and Check Point are also the
top cybersecurity vendors on the leading public cloud marketplace,
AWS Marketplace, selling their virtual offerings on a per hour and
annual basis. This is still a small part of their overall business,
but is the fastest growing area," Borade added. "Barracuda Networks,
Trend Micro and F5 Networks also have a strong presence on cloud
marketplaces, highlighting their early move to adopt new deployment
models."

For detailed highlights, please contact Rachel Lashford,
rachel_lashford@canalys.com, +44 7775503940.

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ots Originaltext: Canalys
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