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An article from
Dive Brief


SECURITY TO TAKE AN OUTSIZED ROLE IN IT SPENDING IN 2023

Modernization has taught companies that cyber spend is a smart investment.

Published Oct. 4, 2022
Matt Ashare Reporter
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baona via Getty Images


DIVE BRIEF:

 * Security is taking an outsized role in technology spending and is expected to
   creep into into software, hardware and cloud budgets in 2023, according to
   Spiceworks Ziff Davis survey of more than 1,400 IT professionals conducted in
   June and released last week. 
 * In addition to edging out productivity applications and accounting for 11% of
   software budgets, security will consume 7% of hardware spending and 6% of
   cloud spending, according to the report. Security and business applications
   will share the top spot in managed IT services budgets, each with an 11%
   share.
 * Security also ranked as one of the primary use cases for AI technologies,
   reflecting a broad prioritization of cyber. “If you look across all of these
   categories, security is a line item in all of them,” Peter Tsai, senior
   technology analyst at Spiceworks Ziff Davis, said Wednesday during a
   SpiceWorld 2022 panel. “If you add all of them up, security is one of the top
   standing areas overall.”





DIVE INSIGHT:

Most companies are reacting to a potential recession by cutting back on
discretionary spending and other areas of the business while increasing tech
budgets, according to the survey. Cybersecurity will be one of the bigger line
items in 2023 IT budgets.

Total spending on software will comprise 28% of 2023 IT budgets, topped only by
hardware, which will command a 30% share, according to the report. Cloud-based
and managed services account for the remaining share of tech budgets.

“You can buy security as a hardware appliance, as standalone software or as a
cloud service,” Tsai said in an interview with CIO Dive. “They are all
interconnected.”

The focus on security is, in part, a learned behavior at many companies,
according to Jim Rapoza, VP and principal analyst at Aberdeen Strategy &
Research, a division of SWZD.

Modernization has taught companies that cyber spend is a smart investment.

“Older systems increase your security risk,” Rapoza said. “You have systems with
known holes, systems you’re keeping together with duct tape in order to
integrate with cloud, containers or edge [computing] — when you do that, you're
increasing the security problems.”

As companies survey the threat landscape, consider the costs of security
breaches and deploy software and hardware to mitigate risk, investments in
recruiting and upskilling cyber talent can be added to the final tally for
security budgeting.

“You always need help,” Jeff Grettler, global director of IT at SWZD, said
during the panel. “Even if you're fully staffed, you just always feel like there
should be like one more set of hands, one more set of eyes, one more layer that
protects you, especially when it's around security.”

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Filed Under: Security, Software, Hardware & Infrastructure


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EDITORS' PICKS

 * Justin Sullivan via Getty Images
   
   
   3 TECHNOLOGY LESSONS FROM SOUTHWEST’S IT FAILURE
   
   Not all $1 billion tech investments are equal when it comes to paying down
   technical debt.
   
   By Matt Ashare • Feb. 2, 2023
 * AndreyPopov via Getty Images
   
   
   THE COST OF BAD SOFTWARE ADDS UP
   
   Businesses must reconfigure the development process, tackling the biggest
   issues first on the road toward software redemption.
   
   By Jen A. Miller • Jan. 13, 2023


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Editors' picks
 * Justin Sullivan via Getty Images
   
   
   3 TECHNOLOGY LESSONS FROM SOUTHWEST’S IT FAILURE
   
   Not all $1 billion tech investments are equal when it comes to paying down
   technical debt.
   
   By Matt Ashare • Feb. 2, 2023
 * AndreyPopov via Getty Images
   
   
   THE COST OF BAD SOFTWARE ADDS UP
   
   Businesses must reconfigure the development process, tackling the biggest
   issues first on the road toward software redemption.
   
   By Jen A. Miller • Jan. 13, 2023

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