Crises and cost pressure: clouds on the horizon

Experts expect budget cuts in many IT segments this year, including IT security. The new slogan will then be: "Do more with less". In order to stay one step ahead of cyber criminals, new solutions are needed.

Experts expect budget cuts in many IT segments this year, including IT security. The new slogan is then: "Do more with less". But cyber criminals benefit from a growing attack surface when, for cost reasons, only the most important corporate resources can be optimally protected. The trend towards Ransomware-as-a-Service and risks in the migration to the cloud offer additional opportunities for hackers - they could therefore have an easier time in the future.

The current price development and the consequences of the geopolitical situation, which is characterised by conflicts, are also causing uncertainty in many IT departments. On the one hand, the confrontation with Russia caused by the Ukraine war and the dispute with China require higher budgets in the IT security sector. On the other hand, prices in the security segment are also rising due to general inflation. However, the financial increases that are actually necessary are only available to very few CISOs, because many companies are acting rather cautiously in the current situation. They therefore tend to face restrictions, as the developments mentioned above often lead to additional financial burdens in the company. In many companies, this requires financial reallocations in which the security officers have difficulties asserting their ideas.

However, reduced security budgets can lead to an inadequate security situation in companies. This trend will increase the attack surface and thus the risk of successful hacking attacks. Cyber criminals will benefit from this, so they are likely to watch this development closely. Industry experts expect that security managers will be forced to meet these challenges in the future with a changed focus, as surveys among IT security executives  show.

Focus on core processes: Hackers have an easier time

Many of the security executives surveyed expect cybersecurity budget discussions to focus on securing critical corporate assets. Companies are likely to focus strongly on central areas worth protecting and invest less in all-round protection. Providers of holistic protection solutions could therefore be among the losers of a negative economic development.
In particular, less technically savvy management will sometimes view IT security spending as merely an additional cost rather than an essential business function that helps protect the company's reputation and bottom line, is a frequently heared fear. But companies with high levels of protection will do better economically in the long run than those with far-reaching cuts.

In recent years, hacking tools have become a commodity in the criminal underground. As a result, Ransomware-as-a-Service, for example, has become a lucrative industry, contributing to the proliferation of ransomware attacks. Newer tools even enable ransomware attacks without much prior technical knowledge and open the door to cybercrime for anyone who can operate a browser. Experts are certain that this trend towards the commercialisation of cybercrime will continue.

Cloud harbours risks

Some other experts warn of a temporary danger, but one that should not be underestimated: the switch to cloud technologies in the course of consolidation measures can lead to an increase in the attack surface. Companies will look for technologies that reduce costs and increase efficiency. These include cloud-based technologies. Whenever legacy systems are retired, their tasks are more likely to be outsourced to the cloud than new hardware is purchased for them. However, the phase of transition to the cloud is risky because legacy systems often remain active during and after the transition, but usually no longer receive the necessary attention and can thus pose a threat to the company.

But specialists also highlight the longer-term trend and expect that in the next five years, every organisation with more than 100 employees will spend at least ten percent of its operating budget on digital security. A look at the past also provides reason for confidence: So far, the cybersecurity industry has traditionally shown resilient in difficult economic times, and this time will probably be no different.

Recession or not, businesses are currently facing an unprecedented volume and sophistication of threats.