12 Aug 2021, the Cybersecurity Boom
It’s no secret that with the increase in cybersecurity attacks on the world’s largest corporations that the enterprise and mid-market operators are looking to secure their digital assets. However with this increased awareness comes increased complexity, crowded markets, mixed solutions and strategies, and an overwhelming sense of unknown.
At Revenue Rocket we represent many cybersecurity companies in both a buy-side and sell-side capacity, which has given us a high degree of confidence in the category, its value to the overall IT services industry, and what the future looks like, especially as it relates to the trends in consolidation. However, as of recently we have seen a rather dramatic increase in providers looking to solidify and execute interim organic growth plans… and it’s no wonder why;
In the last 12 months we have witnessed:
- Ransomware attacks increased by more than 105%
- Email phishing incidences increase by more than 600%
- Increased complexity in remote employee enablement with a 40% increase in remote desktops!
- The proliferation of 5G has increased the opportunity for connected devices by more than 160% posing additional security exposure.
Furthermore, Consumer and business adoption trends such as the following are major indicators as well;
- 95% of cybersecurity breaches are caused by human error. (Cybint)
- The worldwide information security market is forecast to reach $170.4 billion in 2022. (Gartner)
- 88% of organizations worldwide experienced spear-phishing attempts in 2019. (Proofpoint)
- 68% of business leaders feel their cybersecurity risks are increasing. (Accenture)
- On average, only 5% of companies’ folders are properly protected. (Varonis)
- Data breaches exposed 36 billion records in the first half of 2020. (RiskBased)
- 86% of breaches were financially motivated and 10% were motivated by espionage. (Verizon)
- 45% of breaches featured hacking, 17% involved malware and 22% involved phishing. (Verizon)
- Between January 1, 2005, and May 31, 2020, there have been 11,762 recorded breaches. (ID Theft Resource Center)
- The top malicious email attachment types are .doc and .dot which make up 37%, the next highest is .exe at 19.5%. (Symantec)
- An estimated 300 billion passwords are used by humans and machines worldwide. (Cybersecurity Media)
So why is now the right time for cybersecurity solutions and service providers to engage an advisor? Because, with increased awareness and adoption will come major consolidation and the need for providers to maintain relevance and scale as the industry navigates more for fewer offerings, disruptive technologies, and increased interest from the investment community. With our in-depth understanding of this category, we are best positioned to help you draft your strategic growth plan, prepare your existing business for a sale, or help you identify the ideal operator or technology as part of a consolidation play. For more information please contact us at www.revenuerocket.com/contact-us