DEFEND AND INVEST: HACKING ATTACKS LEAD TO CYBERSECURITY INDUSTRY GROWTH

 

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Some industries excel during times of excitement or crisis. People flock to buy hotdogs, hamburgers, fireworks and nice cold U.S. beer during the summer time. The demand of umbrellas, flashlights, jugs of water and cans of food rise when the threat of a hurricane is imminent. Even a Trump presidency may lead to many democrats stocking up on their gold stockpiles.

The same may be said about the cybersecurity sector. As the number of hacking attacks increase—including the threats against state voter databases and the massive data breach at Yahoo! Inc. that impacted over 500 million accounts—the demand for cybersecurity software rose as well, according to a Bloomberg Intelligence report.  

The cybersecurity industry “is undergoing a major shift as demand for traditional end-point products declines amid a shift towards” enhanced security software focusing on “cloud, mobile”  and the internet of things sectors, Anurag Rana and Mandeep Singh, Bloomberg Intelligence industry analysts, said in a Oct. 5 report. 

The cybersecurity industry growth may also lead to more sectoral mergers and acquisitions. As companies trend toward incorporating “net-gen products, companies like Cisco Systems Inc., IBM Corp. and Symantec Corp.” may seek to buy up smaller software companies to shore up their cybersecurity offerings. 

At the top of the pack of cybersecurity industry growth is Palo Alto Networks and Fortinet Inc., both of which “are expanding faster than peers” because of their “focus on net-generation security products compared with legacy vendors such as Symantec,” the Bloomberg Intelligence report said.

Cybersecurity analysts tell consumers after a hacking incident to change passwords and to upgrade existing security. After a hack, consumers may want to diversify their investments to include cybersecurity software companies.

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