Current Cybersecurity Spending Not Enough to Meet Security Goals

While team Tematica is meeting with institutional investors in the UK and Europe about several of our thematic indices, including those for Digital Infrastructure & Connectivity and Cleaner Living (see the links below), we continue to collect articles that remind us there has been no slowdown for our Cybersecurity & Data Privacy investment theme and index. Here are some of those articles from the last few days:

• 1 Million Texans Potentially Impacted By Dental Care Data Breach

• Got Milk? After Supplier Hit by Cyberattack, a NH School District Is Short

• Hackers Target Bank Networks with new Rootkit to Steal Money from ATM Machines

• Cyberattacks are on the rise as hackers use Russia-Ukraine war as a distraction, CrowdStrike CEO says

• Microsoft Defender tags Office updates as ransomware activity

• SEMI Applauds Findings on Cybersecurity Hardware Adoption in Europe

And for those that might want to lean back and be updated on Conti ransomware, enjoy this overview update on the topic:

Here’s the thing…

Research firm Gartner forecasted cybersecurity spending in 2021 would reach $150.4 billion, up 12.4% year over year and a notable acceleration from the 6.4% spending increase logged in 2020. In retrospect, Gartner’s tally of cybersecurity spending in 2021 hit ~$155 billion, and the firm expects it will rise just under 11% to $172 billion this year. As we shared with readers several weeks ago, that 2022 forecast was likely to be conservative like it was in 2021.

Findings from Arctic Wolf’s State of Cybersecurity 2022 Trends confirm that view. That report, which surveyed more than 300 IT security decision makers worldwide, found that 50% of security leaders believe their organization’s cybersecurity budget “fails to meet the minimum figure they need to remain on track with their security goals.” While some may be surprised by that revelation, it clearly points to the need for greater cyber security spending relative to forecasted figures.