Video | Business Headlines | Internet | Science | Scientific Ethics | Technology | Search

 

Spending on IT security reaches $142.6 million

For Immediate Release

Spending on IT security reaches $142.6 million in 2003, growth fuelled by virus scares driving demand for security services, says IDC

Auckland, 23rd February 2004

At its peak the recent Mydoom virus was hitting some New Zealand businesses with over 2000 messages per minute. This sort of repetitive bombardment of businesses by external threats has certainly raised the profile of IT security in New Zealand. Since 1996 IDC has asked New Zealand CIO's what their biggest challenge will be for the coming year. In 2003, information security jumped from a typical position of around 14 to be the 4th biggest issue for CIO's, and this growing concern for security is being reflected in strong market growth.

IDC's recent report on the "New Zealand Security Solutions Market, 2003 – 2008" reveals that the IT security market in New Zealand was worth $142.6 million in 2003 and is forecast to be worth almost $450 million by 2008, a compound annual growth rate (CAGR) of 26.5% (Figure 1).

Over the forecast period, the IT security hardware market is forecast to grow the fastest with an expected CAGR of 34.7%. The services market is also forecast to grow rapidly with a CAGR of 25.1%. IT security services will contribute the most in terms of revenue to the New Zealand IT security market, accounting for at least 38.8% of the total market over the entire forecast period.

“The security software market is changing, customers are moving away from purchasing point products that address a specific concern, to more proactive, centralised and integrated solutions”, says Jane McPherson, Market Analyst. The Internet, mobile computing, corporate growth, strategic ecommerce initiatives and the use of VPN's are driving the adoption of security software. This adoption, particularly around secure content management, is set to continue in the future, fuelling growth in the security software market in New Zealand.

“The New Zealand IT security hardware market is forecast to increase over the forecast period, rising from $38.64 million in 2003 to $171.1 million by 2008", says Jane McPherson, "this growth will be driven largely by the expansion in the SME space and the uptake of broadband communications as increased network traffic could pose potential security problems”.

With the IT environment quickly moving towards one which is ‘connected anywhere and anytime’, vendors that are able to take up the role of an educator and provide integrated products and associated services will be best placed to profit in this security-conscious hardware market. Opportunities are greatest amongst large businesses, as they tend to be ahead in their adoption of IT and at present are likely to show early signs for emerging market trends. Security requirements of large businesses tend to be more intensive and often strategic.

About IDC:

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts local and worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content.

IDC's customers comprise the world's leading IT suppliers, IT organisations, eBusiness companies and the financial community. Additional information can be found at . -ENDS-


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>

ALSO:

Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>

ALSO:

IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>

ALSO:

Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>

ALSO:


Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>

ALSO:


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>

ALSO:

Winding Down Irrigation: Funding Ends For Crown Irrigation Investment

The Government has begun winding down public funding for large-scale irrigation through Crown Irrigation Investments Limited (CIIL), in line with the Coalition Agreement and the Confidence & Supply Agreement. More>>

ALSO: