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Whether you believe we are in or about to enter a recession, IT budgets are certainly tightening up for 2009.
In a climate of uncertainty, CIOs are asking for across the board budget "constraint" until the uncertainty clears. Perhaps
spending on operations is not being cut, but capital projects are being postponed unless they have clear and short-term return on investment. Even then it may be difficult to get the initial investment approved. So in this environment, what happens to security budgets?
Security spending has been increasing for most of the past decade. Our research has seen security budgets increase from about
2% to about 8% of IT budgets. With sustained investment in security we have also seen a correlation in reported success. Companies
that have consistently invested more than 5% of the IT budget in security report fewer challenges with malware, security breaches
and identity theft. Sustained investment in the technology, people and process leads to increased security. In a time of constrained
budgets, this type of sustained investment can carry a company through a period of cutbacks. Having developed operational
processes and trained security and risk management professionals, companies can reduce capital-intensive projects and sustain
consistent levels of security for a short period of time. Of course, at some point capital investments have to resume or companies
will fall behind the technology adoption curve and find themselves scrambling to catch up.
For companies that have not invested in security at a sustained level above 5% of IT budgets, scrambling to catch up is the
norm. As budgets tighten it will get harder and harder to keep up with the new threats. Even so, there are ways to sustain
security with less spending:
* Focus on training and awareness. Organize weekly or monthly security awareness seminars, post security awareness posters,
print a security tips brochure. Training not only reduces unintentional employee security lapses but may also increase early
notice of problems by increasing employee awareness and vigilance.
* Renegotiate license contracts. If you're hurting, so are the sales teams of security vendors. Now is the time to negotiate
a better volume license. Shop around with competitors of your incumbent vendor and ask them to offer pricing that will cover
the cost of transition. Then turn that around as leverage with your incumbent vendors. Ask for a discount for higher volumes
or ask them to throw in one year's maintenance for free. We've seen vendors willing to do all of the above.
Comments (2)
open source database securityBy yuli on October 28, 2008, 1:07 pmThe are a lot of security solutions used in open source. I am involved in development of one of such solutions. It is called GreenSQL. It is a MySQL database firewall....
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Security budget as percentage of IT budgetBy Anonymous on October 28, 2008, 2:34 pmThat percentage is largely determined by the nature of the data managed and regulatory requirements. So an online retailer may have a higher % of IT budget due to...
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