Security not immune from budget cuts

Conventional wisdom is that security spending will be sheltered from economic volatility. But not according to a Goldman Sachs survey of 50 chief security officers. Some conclusions from the April 3 report ("Security Spending Survey: Brakes Applied"):

Our survey indicates that security spending is no safer from budget cuts than overall IT spending....

2008 security budget growth intentions of 7.2% are below our previous expectations of 7.8%.

2009 looks to grow about 6.5%, with the brakes continuing to be applied to security budget growth.

Meanwhile, large enterprises are shifting to big suite vendors (and away from smaller vendors), which is good news for Oracle, EMC and Cisco, the report says.

Large suite providers with "good enough" solutions continue their encroachment on "best-of-breed" providers. In our survey, 42% of respondents indicated that a greater portion of their security spend would go to suite providers, while 28% said they would spend more with smaller niche security software vendors.

And the analysts expect the trend to consolidation among security vendors to continue unabated, i.e., big vendors gobbling up smaller ones.

Join the discussion
Be the first to comment on this article. Our Commenting Policies