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Building a "troika" of digital security

   With the digital transformation of enterprises, the role of IT security is also growing. If it is said that after an enterprise was attacked by IT in the past, only a part of the business may be affected, now it will cause the entire business of the enterprise to "stop" at any time. For enterprises, how to do a good job in network security protection and reduce losses has become a "must answer".

  According to data released by IDC, China's cybersecurity-related spending is expected to reach $10.26 billion in 2021. It is estimated that by 2025, China's cybersecurity spending will reach $21.46 billion. During the five-year forecast period from 2021 to 2025, China's cybersecurity-related spending will grow at a compound annual growth rate of 20.5%, ranking first in the world.

  Clearly, companies have realized that security is strategically integrated into their development plans. Data is an important production factor for a digital enterprise. It is necessary to take precautions and prepare in advance to prevent possible future attacks. This allows businesses to minimize the impact of an attack even if it occurs.

  At present, from the perspective of network security investment distribution, the proportion of China's network security hardware market is the largest, reaching 45% in 2021, while the proportion of network security services and software will be 31% and 24%, respectively. Looking farther, the proportion of global network security services will reach 43% in 2021, and the proportion of network security software and hardware will be 41% and 16% respectively.

  For enterprises, hardware products and software products are indeed necessary, but if the corresponding services are lacking, when a cyber attack occurs, enterprises will not know how to use these products efficiently and how to take effective measures. As a result, businesses need to invest in cybersecurity services.

  According to IDC data, the overall revenue of vendors in China's IT security service market in 2021 is approximately US$2.861 billion, and the revenue of vendors has grown rapidly compared with the same period last year, with an increase of 41.7%. It can be seen that China's IT security service market will achieve a strong rebound in 2021, and it is expected to continue to open up new incremental space in the future.

  In fact, with the cloud will become the "main battlefield" of network security. Up to 95% of the world's enterprises are using public cloud and private cloud at the same time, and the hybrid IT architecture will increase the exposure of the network and increase the difficulty of security management accordingly.

  The future IT infrastructure will be more and more cloud-based, and enterprises will become more complex in network security management after they migrate to the cloud. Therefore, enterprises need to pay special attention to network security-related services and choose cross-cloud security management software, which will also become an important factor driving the growth of the security software and security services market.

  It is worth mentioning that in the first half of 2022, global venture capital funds continued to pour into the cybersecurity market. In the first half of 2022, $12.5 billion in venture capital was invested in 531 deals, the data showed. This matches the $12.6 billion in funding in the first half of 2021 and is by all accounts a record year for cybersecurity investment.

  The most active area of ​​cybersecurity VC investment in the first half of the year was "risk and compliance". Other hot investment areas with significant deals include: data security, identity and access management, network and infrastructure security, application security, and SecOps/IR/threat intelligence.

  In recent years, the raging epidemic has brought great challenges to the development of the global network security market. But at the same time, the demand for network security under the new normal is also rapidly exploding. The further acceleration of digital transformation, the in-depth application of new technologies, the good control of the epidemic, and the increasingly severe cybersecurity situation have brought many development opportunities to the cybersecurity industry. In the future, network security will become a solid foundation for the digital economy, the core requirement of digital trust, and "escort" the business development of enterprises.



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