The 2023 Cybersecurity Budget Trends Report, conducted by IANS Research and Artico Search, reveals emerging trends in cybersecurity budgeting for 2023. The report provides valuable insights into the state and progress of cybersecurity across industries.
According to the survey responses provided by 550 CISOs and security professionals, cybersecurity budget trends for 2023 recorded a rise of only 6%. This represents a significant slowdown compared to the previous years, where there were 16% and 17% increases in cybersecurity expenses. The conservative approach in budget growth reflects how businesses are adapting to the current economic uncertainties and rumors of inflation. Interestingly, more than one-third of companies are either freezing or reducing their cybersecurity spending, indicating a cautious approach during unpredictable times.
Despite the slower growth, there is an interesting pattern emerging in cybersecurity budget allocation. Security budgets are increasing as a percentage of overall IT budgets, meaning that while the growth in security spending has slowed, it is having less of an impact compared to other areas of IT spending. Between 2020 and 2021, security spending relative to IT spending increased from 8.6% to 11.6%, indicating that cybersecurity investments are still a priority for many organizations.
The report also highlights specific trends in cybersecurity budgeting. In terms of industries, the technology and retail sectors have the highest percentage of organizations reporting a decrease in their security budgets. VC and PE-backed companies have some of the largest security budgets, making up nearly 30% of their overall budget. For those companies that saw budget increases in the first quarter, 63% did so with varying reasons and in different amounts. Greater risk exposure and digital disruption were cited as causes for budget expansion.
Furthermore, there are differences in budget allocation between cloud-based and on-premise strategies. Cloud-based architecture allocates a higher proportion of the budget to payroll, with employee-related expenses being the highest item in the security budget. Cloud companies also allocate a larger proportion of their total investment to hiring personnel compared to on-premise companies.
The report concludes with a cautious outlook for cybersecurity in 2023. While the cooling down of budget growth can be attributed to the macro-environment, there is an increasing recognition of the connection between cyber risk and financial risk. Regulatory guidelines such as the recently released Breach Disclosure guidelines by the SEC emphasize the importance of cybersecurity for organizations.
Overall, the 2023 Cybersecurity Budget Trends Report provides important insights into changing cybersecurity budgeting trends. Companies are faced with the challenge of balancing their aspirations for secure operations with the financial demands of today’s world. However, security spending remains resilient, with organizations prioritizing the protection of their digital assets against the growing array of malicious threats.