Improving Security Solutions Could Grow the Internet of Things Cybersecurity Market by $9-$11 Billion
New Bain & Company research identifies four steps IoT device vendors can take to address security concerns that are holding back further growth in this market
NEW YORK, May 30, 2018 (GLOBE NEWSWIRE) -- Security concerns are a significant roadblock to investment in the Internet of Things (IoT). According to a new Bain & Company report, Cybersecurity is the Key to Unlocking Demand in IoT , 45 percent of IoT buyers say concerns about security remain a significant barrier and are hindering the adoption of IoT devices.
If vendors could provide better security, enterprise customers surveyed say they would be willing to buy, on average, at least 70 percent more IoT devices. In addition, 93 percent of executives said they would pay more for devices with better security - about 22 percent more on average. Taken together, Bain & Company estimates that improving security solutions for these devices could grow the IoT cybersecurity market by $9-$11 billion. For IoT device vendors - companies that make IoT devices as well as those that provide related solutions - the message is clear: improve security to gain a competitive edge and grow your market.
These are among Bain & Company's findings over the last three years and new, recently completed research on IoT security.
"We expect growth in the markets that comprise the IoT to continue full steam ahead, but issues around security concerns could derail that progress," said Ann Bosche, a partner in Bain & Company's Telcom, Media and Technology Practice. "Enterprise customers are moving cautiously until they can gain some reasonable assurance of the security of their data and operations, which increasingly rely on devices, sensors and the Internet of Things."
The Bain & Company survey found most executives (60 percent) said they were very concerned about the risks IoT devices pose to their companies - not surprising, given the damage that an IoT security breach can cause to operations, revenues and safety.
In determining solutions to guard against attacks, IoT device vendors can segment their target customers by levels of cybersecurity capability maturity. The research finds that customers at the least-advanced end of the spectrum are more likely to seek out simplified and integrated security solutions, whereas those with more advanced capabilities prefer to invest in best-of-breed or customized point solutions.
Further, across segments, nearly all executives - 90 percent - said that IoT devices pose a moderate or significant risk to their organizations, and executives in companies with greater cybersecurity sophistication see more risk than those in less sophisticated companies.
The research also found that executives in some industries see themselves at greater risk than others. Those in durable goods, building and construction, energy and utilities, financial services, and technology were most likely to express a significant level of concern.
In response to these risks, executives who manage security said that, as customers, they want solutions that are highly effective, easy to integrate, and flexible to deploy.
Companies take a range of approaches to meet their security needs, based on their capabilities and the availability of marketplace solutions from vendors. Only about a third of IoT cybersecurity solutions used today are from IoT device vendors, indicating that vendors are either not offering holistic, high quality, solutions that meet consumer needs or they are not promoting them well enough. Bain & Company found that companies with the most advanced cybersecurity capabilities rely more on internally developed security solutions, not only because they may have more complex needs but because they are more likely to have the talent and capabilities to develop their own solutions. Companies with ad hoc security capabilities have the most gaps across all IoT layers tested.
The research also looked at how companies deploy solutions by layer of security and found ample opportunity for IoT device vendors at every layer of the stack. The access interface layer has the greatest level of protection, whether developed internally or provided by a manufacturer or third party. Other layers of the stack were protected by more internal solutions - or, in some cases, none at all. Customers' preference for internal solutions may be partially explained by considering the specific conditions of each layer. For example, data security solutions typically require more computing and power resources than are currently available on basic IoT devices.
"Most enterprises want a cohesive set of tools and a unified overview of the security posture of their devices, but few IoT device makers understand their customers' operations well enough to provide that kind of solution," said Syed Ali, a cybersecurity expert in Bain & Company's IT Practice. "Lacking well-designed IoT cybersecurity products and services, customers are devising their own solutions, foregoing them altogether, or failing to implement IOT solutions until vendors can fill the gap."
All IoT device vendors will need to pay more attention to security in the design, development and deployment of devices. Four steps can help executives frame their task:
Understand how customers are using devices. Staying current by refreshing their understanding of customer use cases every 12 to 18 months will allow them to stay on top of evolving security requirements, and help identify unmet needs. Ascertaining the average cybersecurity maturity level of their customers will help manufacturers invest in the right out-of-the-box and add-on solutions.
Provide cybersecurity capabilities on the device and, where possible, partner with trusted cybersecurity vendors to provide additional solutions. Engineering teams should embed secure development practices in the software and hardware components of the device, and provide inherent solutions for the access interface, apps, data and device layers. Taking these measures can mitigate common vulnerabilities in IoT devices today such as default or embedded passwords, lack of data security for credentials and network communications, and weak safeguards for ensuring system integrity.
Meet quality assurance thresholds and be able to certify that their IoT devices are free from known vulnerabilities. This would mitigate a major pain point for customers who sometimes install new devices without realizing they contain vulnerabilities. Deploying a more methodical process to identify and remove vulnerabilities across layers or engaging third-party vulnerability scanning and or penetration test firms can help manufacturers meet this bar.
- Fulfill their obligations during the warranty period by continuously testing for new vulnerabilities, providing software and firmware updates, as well as feature and functionality upgrades for out-of-box and aftermarket solutions. Delivering updates to firmware, operating systems and applications in response to newly discovered security vulnerabilities should remain a top priority through the warranty period.
"IoT device vendors and ecosystem players that move quickly to improve the security around IoT devices are likely to reap rewards not only from their ability to earn a premium, but also from an expanded market," said Frank Ford, a partner in Bain & Company's IT Practice. "These four steps are a start, though by no means, the whole of what it will take to begin to address the security concerns that are holding back growth of the IoT."
Editor's Note: To arrange an interview, contact Dan Pinkney at email@example.com or +1 646 562 8102
About Bain & Company
Bain & Company is the management consulting firm that the world's business leaders come to when they want results. Bain advises clients on strategy, operations, information technology, organization, private equity, digital transformation and strategy, and mergers and acquisition, developing practical insights that clients act on and transferring skills that make change stick. The firm aligns its incentives with clients by linking its fees to their results. Bain clients have outperformed the stock market 4 to 1. Founded in 1973, Bain has 55 offices in 36 countries, and its deep expertise and client roster cross every industry and economic sector. For more information visit: www.bain.com. Follow us on Twitter @BainAlerts.
Bain & Company
Tel: +1 646 562 8102
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bain & Company via Globenewswire
Om Nasdaq GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York
+1 212 401 8700http://www.nasdaqomx.com
NASDAQ (NASDAQ: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents.
Følg saker fra Nasdaq GlobeNewswire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Nasdaq GlobeNewswire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Nasdaq GlobeNewswire
Perceptyx Named One of America’s Fastest Growing Companies for the 4th Consecutive Year16.8.2018 05:37 | Pressemelding
INC 5000 award recognizes Perceptyx’s continued innovation and partnership with many of the world’s best companies SAN DIEGO, Aug. 15, 2018 (GLOBE NEWSWIRE) -- For the 4th consecutive year, Perceptyx has made the prestigious INC 5000 list of America’s fastest growing private companies. A recognized leader in people analytics, Perceptyx specializes in facilitating organizational change through the strategic use of employee surveys and management consulting. Longtime partners with many of the world's largest organizations, Perceptyx is uniquely capable of delivering insights across heavily distributed organizations with complex hierarchies in a way that’s as unique as an organization’s culture and brand. “We’re proud to be recognized among America’s fastest growing companies again,” says John Borland, Co-founder and CEO of Perceptyx. “We believe that our clients are the real heroes of their organizations. It has been our honor to help so many of the world’s best companies realize their g
Bombardier Establishes Automatic Securities Disposition Plan15.8.2018 22:48 | Pressemelding
Not for distribution to U.S. news wire services or public dissemination in the United States Plan permits sales of vested shares earned by certain senior executives in accordance with predetermined instructions Plan reinforces the incentive effect of performance-based compensation by allowing for the sale of shares on the open market over a period of up to two years at prevailing market prices, regardless of any subsequent material non-public information participants may receive Plan participants must satisfy Bombardier’s minimum stock ownership guidelines for senior executives MONTRÉAL, Aug. 15, 2018 (GLOBE NEWSWIRE) -- Bombardier announced today that it has established an automatic securities disposition plan (“ASDP”) in accordance with applicable Canadian provincial securities legislation. The ASDP allows for the exercise and sale of vested securities earned by certain senior executives of Bombardier as part of their overall performance-based compensation. Under Canadian securities
Williams Scotsman Completes ModSpace Acquisition15.8.2018 22:05 | Pressemelding
BALTIMORE, Aug. 15, 2018 (GLOBE NEWSWIRE) -- WillScot Corporation (Nasdaq: WSC) (“Williams Scotsman”), the leading specialty rental services provider of innovative modular space and portable storage solutions across North America, today announced that it has completed its acquisition of Modular Space Holdings, Inc. (“ModSpace”) for a total purchase price of approximately $1.2 billion. With the addition of ModSpace, Williams Scotsman now manages over 160,000 modular space and portable storage units serving an even broader customer base from over 120 locations across the United States, Canada and Mexico. The acquisition also expands the breadth and depth of its Ready to Work solutions to existing and incremental customers and markets. Brad Soultz, President and Chief Executive Officer of Williams Scotsman, commented, “We are pleased to confirm the completion of this transformational acquisition and would like to thank our collective customers, employees, and stakeholders for their suppor
Cisco Reports Fourth Quarter and Fiscal Year 2018 Earnings15.8.2018 22:05 | Pressemelding
• Q4 Results: Revenue: $12.8 billion ▪ Increase of 6% year over year ▪ Recurring revenue was 32% of total revenue, up 1 point year over year Earnings per Share: GAAP: $0.81; Non-GAAP: $0.70 ▪ Non-GAAP EPS increased 15% year over year • FY 2018 Results: Revenue: $49.3 billion; increase of 3% year over year Earnings per Share: GAAP: $0.02; Non-GAAP: $2.60 ▪ Non-GAAP EPS increased 9% year over year ▪ GAAP results include a $10.4 billion charge related to the enactment of the Tax Cuts and Jobs Acts • Q1 FY 2019 Guidance: Revenue: 5% to 7% growth year over year Earnings per Share: GAAP: $0.69 to $0.74; Non-GAAP: $0.70 to $0.72 SAN JOSE, Calif., Aug. 15, 2018 (GLOBE NEWSWIRE) -- Cisco today reported fourth quarter and fiscal year results for the period ended July 28, 2018. Cisco reported fourth quarter revenue of $12.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $3.8 billion or $0.81 per share, and non-GAAP net income of $3.3 billion or $0.70 per share.
Algeco Announces Second Quarter 2018 Financial Results Conference Call and Change to Reporting in Euro15.8.2018 18:00 | Pressemelding
BALTIMORE, Aug. 15, 2018 (GLOBE NEWSWIRE) -- Algeco Investments B.V. (together with its subsidiaries, “Algeco”), the leading global business services provider of modular space, secure portable storage solutions and remote workforce accommodations, today announced that it will hold its second quarter 2018 financial results conference call on Wednesday, August 29, 2018 at 10:00 a.m., Eastern Time. To access the call, please dial (847) 585-4422 or (888) 424-8151 (US toll free) and enter participant PIN code 6638830# approximately ten minutes prior to the start of the call. You will be placed on hold until the event begins. The conference call will also be broadcast over the internet with an accompanying slide presentation. To join the web conference, go to http://web.meetme.net/r.aspx?p=2&a=UTiLPVrenccJZd. Please enter your name, email address and company to join the call. The customer service team can be reached at any time by pressing *0 on your telephone keypad. Prior to the call, the
Huobi Joins GLASS Network and Invests in SharesPost15.8.2018 15:00 | Pressemelding
Huobi joins network enabling compliant trading of digital securities globally San Francisco, CA, Aug. 15, 2018 (GLOBE NEWSWIRE) -- SharesPost, a leading provider of liquidity solutions to the private growth asset class, has announced that Huobi, China’s largest cryptocurrency and blockchain token exchange and second largest worldwide, has joined the Global Liquidity and Settlement System network (GLASS). When GLASS becomes operational, Huobi will be able to settle secondary trades of digital securities by U.S. investors in compliance with U.S. securities laws. Huobi will also be able to pool its nine million customers’ buy and sell orders with other exchanges using GLASS on a trading pair by trading pair basis. Greg Brogger, Founder and CEO of SharesPost, said: “We are very excited to see GLASS validated by such a highly respected trading platform. It signals the start of the next stage of development in the digital securities market, and we expect it will go a long way to clearing the
I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.Besøk vårt presserom