Analyst Plimsoll has highlighted more than 40 security vendors that are at risk of collapse in the near future.
As high-profile security breaches at companies such as TalkTalk and Vodafone continue to dominate the mainstream press, the market watcher is warning channel players and customers to pick their suppliers carefully.
Demand for security solutions is certainly increasing as more attacks take place. According to global research from cloud services provider Akami, DDos attacks were up 90 per cent year on year in Q4 2014.
In response to the growing demand, Plimsoll has launched a study looking at the world’s 300 largest cybersecurity vendors, and has claimed one in six are losing money.
More alarmingly, 44 companies have been described as being in "perilous" financial danger, but the analyst is keeping the names close to its chest. And predictably, consolidation is still set to continue, with the market watcher identifying 26 companies ripe for acquisition in 2016.
David Pattison, lead analyst at Plimsoll, said: “It’s something of a gold rush at the minute, with most companies completely unprotected until they are attacked. However, the latest Plimsoll analysis has identified 44 providers that are financially unstable.”
He added: “When choosing a company to protect your business, you need to invest a significant amount of time and money integrating their products into your own business. With this in mind, isn't it prudent to check if your chosen provider is likely to be around to give the cover you need for at least the next few years?”
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