'Without fail, budgets will be cut' - analysts warn cybersecurity spending will shrink

Analysts from Omdia and Canalys are in agreement that cybersecurity spending will be cut next year, as we stare into the prospect of a global recession.

Speaking to CRN as part of our DeskFlix cybersecurity event, which goes live on 25 June, Maxine Holt and Ketaki Borade said that spending has continued as businesses adapt to working remotely, but added that this is not likely to continue.

You can register to attend the virtual event here.

"I think, without fail, budgets will be cut next year," Omdia's Holt said.

"Unless you're one of the companies that has massively benefited from the crisis, the expectation is that budgets will be cut across the board and security will not be immune to this.

What we tend to see in these kinds of situations is that organisations will invest in technology to be able to drag themselves out of it.

"Unsurprisingly, we'll see a drop in kind of the hardware and the appliance based security and an increase in cloud based security is kind of the way and it will go."

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Canalys' Ketaki said that spending in many areas of cybersecurity has risen over recent months - including identity access management, for example - but said that this is likely to drop off as the dust settles.

"With budget cuts and cash flow constraints, this spending will be halted for the next few quarters, so we will see that ripple effect."

Register to attend CRN's virtual event next week by clicking here

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