How Much Do Organizations Spend on Cybersecurity?
The constantly evolving threat landscape has made it hard to protect business assets and data. As a result, companies have to expand their cybersecurity budgets every year. Analyst data notes that cybersecurity spending is growing at a higher rate than the overall IT spend.
According to a Gartner report, security spending grew by 10.5% in 2019. IT spending, on the other hand, trailed at 0.4%. Another study by the Enterprise Strategy Group found that 62% of the interviewed organizations intended to increase their spending in the next year and beyond. Only 36% held that they would maintain their budgets.
Note that the two reports were arrived at before the Coronavirus situation that necessitated a massive digital migration. With the current advanced threat environment, businesses are now forced to find ways of staying ahead of threat actors. Considering security is a priority for most company executives, budgets are likely to keep growing in the future.
How Much Should You Allocate on Cybersecurity?
Like most other business components, several factors come into play when creating a comprehensive cybersecurity budget. For instance, your company size and industry of specialization are among the primary factors. You must also consider the relevant regulation and compliance mandates that affect your business.
The nature of the data your business collects uses, and shares are also important. Sensitive data require more attention, hence relatively costlier.
Another vital factor with a massive impact on your security budget is regulatory compliance. New laws such as California’s CCPA and GDPR for the European Union also bring the financial risk of potential fines.
So How Much Should You Spend?
The resources you’ll spend on cybersecurity connect with your IT budget, which accounts for your IT infrastructure and company size. The estimated amounts that companies spend vary based on the above factors, ranging from an extra 5.6% to 20% of your overall IT spend.
For instance, say you pay $2,500 every month to an IT management agency to address your IT needs. In this case, your system and network security budget would range from $140 to $500 per month. Though significant and sometimes unattainable, the amount is well worth it considering the potential cost of a data breach.
Your Las Vegas managed IT provider can help you identify the expenses with the highest priority and favorable costs to match your limited budget. With their insights, you can customize your cybersecurity campaign and grow your budget gradually to achieve optimal protection and risk mitigation.
Security Spending Priorities That You Must Consider
According to a survey of 450 security and IT experts, a standard cybersecurity budget comprises the following elements:
- Regulatory compliance – 69% of respondents
- Reducing breaches and incidents – 59%
- Keeping up with advanced cybersecurity threats – 57%
- Maintaining brand reputation – 43%
When allocating their cybersecurity budgets, businesses generally consider the following four main categories:
- Compliance – Compliance regulations determine your budget allocations. HIPAA, for instance, requires the protection of individuals’ personal health data. You’ll have to spend more on advanced technologies and cybersecurity tools to comply with the requirements and avoid fines.
- Continuous risk assessments – Proactive security approaches require constant monitoring of security controls’ efficacy and calibration against common attack vectors. So ensure you check whether the risks are within the previously created thresholds before budget reallocation.
- Continuous security training – Cybersecurity education isn’t just an item on your compliance checklist but an ongoing effort involving all stakeholders, contractors, and staff. Forward-looking IT leaders must collaborate with their teams to make the exercise beneficial and frictionless.
- New business initiatives – All business initiatives adopted across your establishment requires comprehensive assessment and a security budget where necessary.
The Bottom Line
Cybersecurity is a “need to have” for entities in the current digital business world and not “nice to have” as it used to. But as you make it a part of your budget, remember that comprehensive protecting isn’t just about the resources spent, but more of commitment and prioritization from staff, IT teams, and company leadership.
With a reliable Las Vegas IT management partner by your side, you’ll easily create a comprehensive budget to address your cybersecurity needs without straining your pockets. Orbit Solutions commits to your IT infrastructure security and overall business success. Need our expert guidance? Schedule a free consultation today.
Orbis Solutions, Inc., in Las Vegas, Henderson, Summerlin and throughout Nevada, has developed creative, strategic and cost-effective technical solutions for a wide variety of clients. Offering a diverse range of products and services, Orbis provides IT solutions to promote your company’s productivity and profitability, and help you sort through the latest-hyped technology, so you can select the best hardware, software or service for your business needs.