Ransomware threats are causing a booming growth of defensive corporations
Cybersecurity firms are experiencing historical growth as ransomware strikes escalate, and corporations increase spending on data protection. Cybersecurity is a significant concern today. The information security industry is on high alert due to the proliferation of new cybersecurity threats. Malware, phishing, artificial intelligence, machine learning, and other types of cyberattacks continuously put sensitive data at risk for organisations.
Cyberattacks can affect any business, regardless of its size. In 2021, cybercriminals utilised the coronavirus pandemic. Due to the ongoing shift from remote to hybrid working environments, companies have become vulnerable to ransomware. In 2022, experts predict that data breaches will be one of the most pressing cybersecurity issues.
During the first six months of 2021, ransomware attacks increased by 151 per cent compared to the same period in 2020. Ransomware is a virus that encrypts files after gaining access to a company's network. Once within, these files and the systems that depend on them become inoperable. To effectively identify and mitigate these threats.
Sometimes, corporate hacks, leaks, and breaches result from social engineering rather than professional hackers employing complex technical methods. Criminals employing social engineering can gain access to information by abusing users' trust, even if they are unaware of the impending security risks. These threats, which are quite prevalent today, exploit human psychology for malicious ends.
In 2021, 66 per cent of organisations surveyed were hit by ransomware attacks, up from 37 per cent the previous year, according to a report published in April by the security company Sophos. The average ransom payment has nearly quadrupled to more than $800,000.
Despite this, Cybereason confirmed last week that it would lay off 10 per cent of its
workforce, or approximately 100 employees. The reductions result from this year's dramatic economic downturn and the beating that software stocks have taken on the public market.
Cybereason's story resonates with many of the more than 450 vendors at RSA, the premier conference for security software companies. Regardless of how corporate IT and finance departments react to inflation and a potential economic slowdown, budgets for protecting data and networks are increasing due to the size, scope, complexity, and potential damage.
According to Vantage Market Research, the global cybersecurity market is projected to grow at a rate of 9.5% per year, reaching nearly $375 billion annually by 2028. According to Gartner, this is roughly double the rate of growth anticipated for total IT spending over the next two years.
Despite this, Cybereason's plans for its next financing round were thwarted by the closing of the IPO window. Private capital could have been an option, albeit with unfavourable terms and almost certainly a reduction from the company's $3 billion valuations from the previous funding round. Instead, CEO Lior Div chose to reduce expenses and preserve cash.
Russia's cyberattacks have increased since the country invaded Ukraine in February, exacerbating the crisis this year. Cybersecurity authorities from the United States and four allies issued an advisory in April, warning of an increase in cyber activity "in response to the unprecedented economic costs imposed on Russia and the materiel support provided by the United States, its allies, and partners."
Cybereason's technology identifies when and how malicious attacks occur by establishing a continuous, real-time view of network activity. Thanks to a global network of sensors that automatically detects anything suspicious or unfamiliar that enters a network, the company has been particularly effective at defending clients against ransomware attacks.
Cybereason raised $325 million last year, capitalising on the insatiable demand for high-growth software brand names. Div stated that he had intended to raise only $200 million, but the company expanded because money was so readily available.
Tanium's chief customer officer is watching what clients do, but there's no sign of a slowdown. The company had its biggest first quarter ever in terms of customers and revenue after adding 1,000 people, or 80%, last year.
Ross says customers are consolidating their security vendors and cutting elsewhere. Tanium's technology gives IT managers network-wide visibility into threats and protection gaps. It sits alongside CrowdStrike or SentinelOne software, Ross said.