General News
Experts Predict $120B in Global Spending on Security Products, Services By 2021
By peter oluka
Worldwide spending on security-related hardware, software, and services is forecast to reach $119.9 billion in 2021, according to a recent update to the Worldwide Semiannual Security Spending Guide from International Data Corporation (IDC).
With nearly every industry investing in security solutions to meet a wide range of threats and requirements, spending is expected to achieve a compound annual growth rate (CAGR) of 9.6% over the 2016-2021 forecast period.
Worldwide spending on security products and services will total $83.5 billion in 2017, an increase of 10.3% over 2016.
“Three overarching trends are driving security spending: a dynamic threat landscape, increasing regulatory pressures, and architectural changes spurred by digital transformation initiatives,” said Sean Pike, program vice president for IDC’s Security Products and Legal, Risk, and Compliance programs. “While IDC expects spending to continue growing, organizations are actively searching for product and service efficiencies that maximize spend in order to fully address such complex challenges.”
IDC expects security spending to be somewhat evenly spread across four industry sectors in 2017: distribution and services ($19.7 billion), public sector ($18.6 billion), manufacturing and resources ($16.4 billion), and financial ($16.3 billion).
By 2021, however, the financial sector is forecast to move ahead of manufacturing and resources due to a 2016-2021 CAGR of 10.2%. Similarly, public sector security spending will nearly pull even with distribution and services by 2021 with a CAGR of 10.3%. The fastest growing sector over the five-year forecast period will be infrastructure with a CAGR of 11.8%.
“Ever-changing security threats, fear of data breaches, and regulatory compliance will continue to drive security investments across all industries,” said Eileen Smith, program director, Customer Insights and Analysis. “On a global basis, banks, discrete manufacturers, and federal/central government agencies will spend the most on security products and services throughout the forecast. Combined, these three industries will contribute to 30% of the worldwide total spending in 2017.”
In addition to being among the industries spending the most on security solutions in 2017, federal/central government and banking will be two of the industries that will see the fastest growth in security spending over the five-year forecast, with CAGRs of 10.9% and 10.7%, respectively. The industry that will see the fastest growth is telecommunications, with a CAGR of 12.6%. This growth will enable telecommunications to become the fourth largest industry in terms of total security spend in 2021, moving ahead of the process manufacturing and professional services industries.
More than 80% of security spending in 2017 will go to services and software. Services spending will be led by two of the largest technology categories – managed security services ($15.25 billion) and integration services ($12.5 billion). Software spending will be focused on three categories – endpoint security, identity and access management, and security and vulnerability management – that will make up more than 75% of the software total this year.
Hardware spending will be significantly smaller throughout the forecast, dominated by network security solutions ($13.7 billion in 2017).
In addition to being the two largest technology categories, managed security services and network security will also be the fastest growing categories during the 2016-2021 forecast with CAGRs of 14.3% and 11.4%, respectively.
The largest market for security products and services on a geographic basis will be North America with total spending of $37.8 billion this year. The second largest geographic market will be Europe, the Middle East and Africa (EMEA) at $26.2 billion followed by Asia/Pacific (excluding Japan)(APeJ) at $11.5 billion.
APeJ will see the fastest growth in security spending over the forecast period with a five-year CAGR of 19.9%. Within the region, China and Malaysia will see particularly strong growth with five-year CAGRs of 25.3% and 20.1%, respectively. Latin America is also expected to outperform the overall market with a CAGR of 10.4%.
From a company size perspective, large and very large businesses (those with more than 500 employees) will be responsible for roughly two thirds of all security-related spending throughout the forecast.
IDC also expects very large businesses (more than 1,000 employees) to pass the $50 billion spending level in 2019. Small and medium businesses (SMBs) will also be a significant contributor to BDA spending with the remaining one third of worldwide revenues coming from companies with fewer than 500 employees.
The Worldwide Semiannual Security Spending Guide quantifies the global revenue opportunity for both core and next-generation security purchases.
The guide offers detailed forecast data for security spending by 20 industries across eight regions and 53 countries.
Unlike any other research in the industry, the comprehensive spending guide was designed to help IT decision makers to clearly understand the industry-specific scope and direction of security-related spending today and over the next five years.
Dr. Obiageli Amadiobi, director general and chief executive officer, National Office for Technology Acquisition and Promotion (NOTAP), has advocated Franchising as a sustainable business model for the South East entrepreneurs.
Dr. Obiageli Amadiobi, DG/CEO, NOTAP
She made this call during a one-day sensitization and unveiling of the NOTAP Franchising Guidelines for south east stakeholders and entrepreneurs for a successful franchising business.
The DG who was represented at the event by Mr. Emeka Orji, head of Department Corporate Planning (CP) Department, NOTAP, said that franchising business model had globally been proven to be successfully sustainable due to low business risks associated with it.
She defines franchising as a contractual business relationship between a licensor (the franchisor) and a licensee (the franchisee) that allows the business owner to use the licensor’s brand and methods of doing business to distribute products or provide services to consumers.
She added that in essence, the franchisee pays the franchisor for the opportunity to use his established business model and brand name in running his business.
Dr. Amadiobi said the essence of the workshop was not just organised to explore the possibility of adopting franchising as a strategic platform to transform local dreams into national and global business realities.
She described the programme as an opportunity for business owners and intending entrepreneurs from the Zone to latch into the huge and untapped potentials provided by franchising business models in becoming business and brand ambassadors.
With over 800,000 franchise establishments across the globe, generating trillions in revenue, she described Franchising as a pathway to economic empowerment.
General News
FG Launches Online Citizenship, Business Management Portal to Enhance Transparency, Service Delivery
The Federal Government has launched a new Online Citizenship and Business Management Platform, in a bid to boost transparency, operational efficiency, and service delivery. The initiative, unveiled by the Ministry of Interior, is in line with the Renewed Hope Agenda of President Bola Ahmed Tinubu.
The platform is designed to simplify and accelerate the processing of citizenship and business-related services, allowing individuals and corporate entities to carry out transactions seamlessly from anywhere in the world.
According to a statement issued by Magdalene Ajani, Permanent Secretary of the Ministry, the digital platform represents a significant milestone in the Ministry’s ongoing reform agenda.
It noted that the new system would drastically reduce bureaucratic bottlenecks, enhance user experience, and improve turnaround time for applications. “The Ministry is committed to promoting a more efficient, transparent, and secure framework for citizenship administration.
“This digital transformation is a testament to our resolve to improve public service delivery through the use of technology”, the statement reads.
Members of the public, private organisations, and other stakeholders can now access the platform through the Ministry’s official website: https://interior.gov.ng, or directly via the portal: https://candb.interior.gov.ng. For technical support or inquiries, users can contact: candb-support@interior.gov.ng.
The Ministry emphasised that the launch of this platform is just one of several digital initiatives aimed at transforming the nation’s administrative processes and aligning them with global best practices.
Observers believe the platform could become a game-changer in reducing red tape and promoting a more investor-friendly environment in Nigeria, particularly in areas involving citizenship acquisition and business operations.
Kashifu Inuwa Abdullahi, director general of National Information Technology Development Agency (NITDA) has said that the 18 community IT centre the agency has built in the past two years are meant to be a beacon of calls and catalyst of change in those communities where they are cited.
He sated this at the commissioning/handing over of IT centre at Akesan area in Lagos. He noted that the IT centres, Innovation hubs among others are part of digital literacy programme of the agency.
“This center is designed and build to help Akesan community to be part of the digital economy, because the President is big and loud when it comes to national prosperity and inclusivity.
“Our target is to build more than 1600 across the country. We want every community every Nigerian to be part of this national prosperity and inclusivity when it comes to digital economy.
“Today, we are here to commission it, to ensure and encourage you to put it in a good use, because we call it a community center means that we want everybody to be part of it. We don’t want it to be suited in a school where the school will lock it for only students and the staff.
“That’s why we located it in the community. Schools can be part of it. Our senior citizens can be part of it. Our religious centers also can be part of it to learn.
“We want it to be a beacon of call as well as a catalyst of change in this community. We want to see more information technology gurus coming from Akesan community. So, I want to encourage you to also come with a sustainability model so that the center will be on. It is on because when you invest in this kind of infrastructure, we don’t want to be called when there are small things that we should come and fix it. That’s why we are handing it over to the community so that the community can put it in a good use. The community can find a way to make it self-sustaining,” he said.
Dr. ‘Bosun Tijani, Honourable Minister of Communications, Innovation & Digital Economy, the NITDA Community Centre in Lagos, a space that is more than just a building. It is a strategic extension of our national mission – a bridge between the Federal Government’s digital economy policies and the unmatched energy, ingenuity, and innovation that Lagos represents.
The minister who was represented by Mr. Johnson Bareyei, director, e-governmance in the ministry, added that his ministry is committed to promoting inclusivity through capacity building initiatives like the 3MTT programme.
“We are also developing the National Digital Economy & e-Governance Bill, which is a robust legislative framework that will help guide our everyday engagement online.
“Our work at the Ministry also includes Project BRIDGE, our ambitious effort to improve interconnectivity by deploying 90,000km of fibre-optic cable across Nigeria. This is a critical imperative as we work towards making Nigeria a $1trillion economy powered by innovation, infrastructure, and inclusive growth,” he said.
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