As per a new research from Kaspersky Lab, safeguarding data in the cloud is continuing to present new challenges for businesses, with the most expensive cybersecurity incidents over the last 12 months related to cloud environments and data protection. Therefore, the success of digital transformation projects are being stalled by the fear of the impact and rising costs of breaches associated with ‘data on the go’.
“To support dynamic business changes and increase efficiency, companies are embracing cloud and business mobility. Cybersecurity has become not just a line item in IT bills, but a boardroom issue and a business priority for companies of any size, as evidenced by companies raising their IT security budgets. Businesses expect a strong payoff as the stakes continue to get higher: besides traditional cybersecurity risks, many companies now have to deal with growing regulatory pressures, for example”, said Maxim Frolov, Vice President of Global Sales at Kaspersky Lab.
The 2018 state of corporate IT security economics mirrors the shifting impact of cybersecurity on the business bottom-line. With the consequences of data breaches becoming more expensive and destructive, during the last 12 months, businesses faced a disturbing reality—for SMEs, the average cost of a breach reached $120K in 2018, which is 37 percent higher than in 2017 ($88k). For enterprises, it increased by a third (24 percent), with the average financial impact of a breach now reaching up to $1.23 million.
These increasing costs are a concern for businesses amidst today’s digital transformation wave where cloud infrastructure is continuing to increase in prominence with 45 percent enterprises and 33 percent SMEs having either already raised or are planning to grow their use of hybrid cloud in the next 12 months.
But this rise of ‘data on the go’ is presenting new security issues, with the most expensive incidents related to cloud environments and data protection. Two out of three of the most expensive cybersecurity incidents affecting SMBs are related to the cloud, where 3rd party hosted IT infrastructure failures bring an average $179K loss. For enterprises, data protection also remains the biggest priority: while data breaches resulting from targeted attacks cost them up to $1.64M , incidents affecting 3rd party IT infrastructure follow quite closely behind, bringing on average $1.47M loss.
However, with the cost of IT incidents on the rise, businesses are realizing that they have to prioritize cybersecurity spending if digital transformation projects are to run smoothly and securely. This is illustrated by the growth in IT security budgets in 2018, which sees enterprises spending almost a third of their IT budget ($8.9 Million) on cybersecurity. Interestingly, despite traditionally being viewed as the lowest spenders on IT security, VSB raised from $2.4k to $3.9k over the last 12 months.