Fragmented cybersecurity costs firms up to 5% revenue

IBM and Palo Alto Networks have released research highlighting the adverse impact of fragmented cybersecurity solutions, with companies losing up to 5% of their annual revenue as a result.

The study surveyed 1,000 executives spanning 21 industries across 18 countries, revealing how security complexity is affecting business operations. On average, organisations manage 83 different security solutions sourced from 29 vendors. The survey indicates that over half of the executives believe that fragmented security solutions hinder their ability to innovate and handle cyber threats effectively.

Over 50% of respondents noted that this fragmentation restricts their ability to effectively address cyber threats, with 75% agreeing that better security integration is essential for ongoing digital transformation. The study's significant finding is that the cost of security fragmentation and complexity results in a 5% revenue loss, equivalent to a USD $1 billion loss for a company with an annual revenue of USD $20 billion.

Mark Hughes, Global Managing Partner for Cybersecurity Services at IBM, said, "Organisations continue to be challenged with updating their security posture to address new threats, while simultaneously being pressed to reduce complexity and decrease spend. Security executives need to enable innovation, protect assets and derive value from their cybersecurity investments to help their organisations thrive and further their business goals."

Karim Temsamani, President of Next Generation Security at Palo Alto Networks, added, "We have seen the positive impacts of adopting a platformised approach to security, and the benefits of what it delivers to organisations. In today's AI-fueled world, strong partnerships are more essential than ever. IBM and Palo Alto Networks are aligned on a common vision of creating better outcomes for our customers - whether in value, operational, or security...and platformisation accomplishes all of them. This isn't just about improving fragmentation today; it's about enabling better outcomes for the future."

The research highlights that companies opting for a platformised security approach experience substantially better outcomes. Such organisations report up to four times better return on investment from their cybersecurity investments, enhancing revenue generation and operational efficiencies. Additionally, 80% of those adopting platformisation benefit from full visibility over potential vulnerabilities and threats, while their mean time to detect and contain security incidents is significantly shorter by 72 and 84 days, respectively.

The study emphasised the advantages of a platform approach in maximising the use of AI, suggesting it allows businesses to ingest and analyse data more effectively to extract actionable insights. With a high percentage (90%) of executives planning to leverage AI for optimisation and innovation in the next two years, the integration of AI into security platforms was noted as crucial for advanced preparedness.

The partnership between IBM and Palo Alto Networks aims to support businesses in streamlining their cybersecurity efforts through platformisation. This strategic alignment seeks to drive technological innovation, prioritise security, and enable organisations to achieve desired business outcomes.