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Australian enterprise security and risk management spending set to grow by more than 11 percent this year says Gartner

Cybersecurity

Following a number of high-profile cyber attacks on Australian organisations, resulting in supply chain disruptions and data breaches, Gartner has revealed security spend is set to increase as businesses grow increasingly nervous.

The technological research and consulting firm says Australian organisations will spend more than $7.3 billion on information security and risk management products and services in 2024, which is an increase of 11.5 percent from 2023.

Spending on cloud security will see the largest growth with an increase of 26.9 percent, according to analysts at Gartner’s recent Security & Risk Management Summit in Sydney.

Richard Addiscott, Senior Director Analyst at Gartner said, “Recent highly publicised cyber attacks in Australia, coupled with increasing regulatory obligations, are keeping security and risk top of mind for Australian organisations this year, not to mention securing what often feels like a tidal wave of new generative AI (GenAI)-enabled technologies.”

He added, “As the frequency and negative impact of cybersecurity incidents continues to rise, every organisation is worried about a potential fallout, and industry regulators are increasingly pushing for improved competence.”

Gartner’s recent global survey of CIOs and technology executives found that cybersecurity will receive the largest increase in technology investment in 2024 for 87 percent of ANZ respondents, which is up from 62 percent in 2023.

Security services, including consulting, hardware support implementation and outsourcing services, remain the largest end-user spending category in Australia, forecast to reach almost $4.3 billion in 2024. 

This is an increase of 9.6 percent from 2023, which Gartner says reflects the increasingly important role security service providers play in helping organisations in Australia navigate emerging cybersecurity challenges.

Businesses across the country are urged to prepare for the evolution of GenAI and its potential for new attack surfaces.

According to Gartner, by 2025 GenAI will cause a spike in the cybersecurity resources required to secure it, leading to more than a 15 percent incremental spend on application and data security.

Addiscott says that while GenAI brings many benefits, it also introduces new and unique risks that require new security practices focused on data protection, AI application security and content anomaly detection.

“These new attack surfaces will drive security departments to spend time and money implementing GenAI security and risk management controls,” he says.

Gartner says this spending will primarily be incorporated into enterprises through existing IT spending in the long-term, through software, hardware and services they are already using.

“It’s reasonable to suggest we’ll see similar patterns when it comes to security spending as the security capabilities continue to evolve,” concluded Addiscott.

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