Cybersecurity spending ‘insufficient’ as growth sinks by 65%

According to the 2023 Security Budget Benchmark Summary Report published last week by IANS Research and Artico Search, researchers revealed that cybersecurity spending saw a 65% drop in growth during the 2022-23 budget cycle with spending in the US and Canada increasing by an average of 6%, down from 17%.

Of the more than 550 CISOs surveyed, 37% reported flat budgets or budget decreases during the 2022-23 cycle, up from 21%. Technology firms, which saw a 30% growth in security spending last cycle, saw the greatest decline with just a 5% increase on average this cycle.  
Of the 63% who reported budget increases this year, 17% said it was due to increased risk, while 15% said it was the result of a digital transformation at their organization, such as after a major industry disruption, like a high-profile breach. On average, organizations adjusting spending in response to major incident boost their budgets by 27%.

“The incremental growth in cybersecurity budgets is insufficient relative to the increases in scope facing security teams. In the latter part of Q4 2022 and throughout 2023, many CISOs reported difficulty getting the resources they need, with some indicating outright budget freezes,” said Nick Kakolowski, senior research director of IANS, in an accompanying press release.

Kelly Robertson, Principal Security Practitioner, had this to say:

   “The key to this information is that GROWTH is slower, but the title can be interpreted as a 65% drop in other ways. Cyber spending is increasing still, just not at 17%. “spending in the United States and Canada increased by just 6% on average in 2022-23, down nearly two-thirds from the 17% growth” That could have been better titled for clarity.”

Perhaps that is true. But I think we all can agree on the fact that it is a good thing that organizations are spending on cybersecurity needs. But at the same time, I am hoping that spending isn’t about to drop at a time when more not less spending on cybersecurity is required.

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