The high cost of deploying cyber security solutions is one of the major challenges in the Global Cyber Security market in the BFSI sector.
The overall prices of cyber security solutions include the cost of software licensing, system designing and customization, implementation, training, and maintenance. After purchasing the software license, organizations also need to hire IT staff for proper implementation of the software.
In addition, enterprises need to train their employees on how to use the application efficiently. Post the implementation of cyber security solutions, continuous upgrades are required to keep up to date with the current market trends. All these factors lead to an increase in the overall cost for an organization to get the final benefits.
TechNavio’s Vice President, Faisal Gaus comments:
“One of the larger problems plaguing BFSI cyber security is the continuously evolving threat landscape, paired with high hardware and software costs. This has caused many companies in the BFSI sector to lag behind in the cyber security department when compared to other industries. This is a problem that TechNavio’s analysts have pegged to remain a highly impactful market challenge into 2016 and possibly even 2017. And this unfortunately, gives hackers a lot of wiggle room to develop more advanced threats, which require equally advanced threat security. It has in a sense created a vicious cycle.”
New Threats Helping Advance Cyber Security Technology
With the rapidly changing IT infrastructure, attackers have found new ways of stealing valuable information and disrupting business by breaching security walls. The increased dependency on websites and web applications for critical purposes such as transactions, purchasing, and other related activities has led to an increase in credential theft cases.
Gaus says:
“With the emergence of social networking websites, it has become easy for malicious attackers to extract information from vulnerable users. It is estimated that 65-70 percent of security breaches are insider frauds/security breaches. Therefore, these factors drive companies to adopt cyber security solutions, thereby fostering the growth of the Global Cyber Security Market in the BFSI Sector.
It is also important to keep in mind that cyber security in the BFSI sector is still developing and is expected to enter the growth stage during the 2014-2019 forecast period. This means that there is still a lot of room for improving upon current technologies and developing new, more advanced cyber security systems.”
Open-Source Software to the Rescue
Recently technological developments in cyber security have led to several open-source solutions becoming available in the market, providing strong competition for the vendors.
Open-source solutions can be downloaded and are compatible in all platforms. Because the purchasing and licensing costs of commercial cyber security solutions are high, several micro and small enterprises in the BFSI sector and individual users prefer open-source products.
The presence of open-source cyber security vendors such as OISF and OpenDNS are expected to offer strong competition to the pure-play and other large cyber security vendors during the forecast period.
