IDC Finds IT Security and Business Continuity Market Poised to Double in Size by 2006
FRAMINGHAM, MA – OCTOBER 28, 2002 – Despite the post-9/11 urgency for improved enterprise security and business continuity, corporate investment dollars did not immediately follow. After an initial spike in buying interest, many buyers postponed their purchases due to cost concerns and confusion about what products and services were needed. This "rethink" period is now coming to an end and, according to IDC, corporate spending for IT security and business continuity solutions is expected to grow from $66 billion in 2001 to $155 billion in 2006.
"Corporate buyers were confronted with a difficult situation – their understanding of the security need was high but their ability to quantify the risk of a security threat was low," said John F. Gantz, chief research officer and senior vice president at IDC. "This uncertainty about the risk caused many companies to delay their purchase decisions. The result was a gap between the need for security and corporate investments in security solutions."
Although spending decisions were delayed, corporate security remains the number 1 priority of IT professionals. Forty percent of almost 1,000 IT managers surveyed by IDC in July 2002 rated IT security as their highest priority. And security was the only area where the percentage of respondents saying spending increased in the past six months was greater than those saying it decreased.
This security focus will translate into an $80 billion market in 2002 and will cause worldwide spending on IT security/business continuity to grow twice as fast as IT spending in general. IDC believes spending will more than double in five years, growing from $66 billion in 2001 to $155 billion in 2006. Although this spending will be almost evenly split on infrastructure, business continuity and information security, spending on business continuity products and services will account for a slightly larger part of the market.
"The current market is a confusing mosaic of undifferentiated products, services and companies offering solutions," added Gantz. "This confusion remains an inhibitor to corporate spending. The companies that will come out ahead in this environment are those that work closely with their clients to develop realistic risk assessments and plans that provide the most protection within the budget available."
IDC's Worldwide IT Security and Business Continuity Forecast, 2001-2006 (IDC #28144) presents a new market forecast for worldwide IT security and business continuity. The forecasts presented are an aggregate of well over 200 discrete IDC market forecasts from 8 regions in 20 categories and numerous sub-categories that were current in July 2002. In addition, IDC also surveyed almost 1,000 IT managers about their current enterprise projects and spending priorities.
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IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in- depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.