Effects on the Cybersecurity Market

The cybersecurity industry continues to be on fire 🔥. As Canalys (part of Omdia) just lowered its global 2025 GDP growth numbers down to 2.2% and the technology industry down to 7% (from 8.3%), the Cybersecurity Titans Index benchmark rose 16.0% in Q1 2025, surpassing last quarter’s high-end forecast of 14.6%. Overall, the 16 vendors’ combined revenue hit US$11.7 billion. Revenue growth rebounded to its strongest pace since Q4 2023, highlighting the Titan’s overall resilience and continued prioritization of cybersecurity budgets amid growing macro-economic uncertainty and wider disruption. Larger deals, boosted by platform adoption, contributed to growth as customers accelerated point-product consolidation. SIEM transformation, cloud and identity security, and risk management were key areas of growth. Security for AI presents an emerging opportunity. Almost every one of these Titans have 100% partner-first GTM strategies, in an industry where 91.6% of revenue flows to, through, and with channel partners. Partner enablement remains a priority, as new programs and updates continue to accelerate platform adoption at scale. Flexible "platform" purchasing programs like Falcon Flex by CrowdStrike, and now Zscaler’s Z-Flex are gaining importance, streamlining procurement for customers. The cybersecurity industry will hit $275 billion in 2025, with partner-led services accounting for $2 for every $1 of product. Those MSPs focused on managed security are seeing 15% growth in services industry wide, and even higher services growth with these Titans. The "platform" tipping point in cybersecurity (that Matthew Ball and our stellar cyber team have been predicting) is now officially here.

The World Economic Forum published its “Global Cybersecurity Outlook Report” for 2025. The report compares 2024's findings with this year's business leaders’ perspectives on top #cyber issues and their effect on organizations around the world. The good news... The transformative potential of #artificialintelligence technologies presents unmatched opportunities for #cybersecurity. The bad news... The increasing complexity of the cyber landscape is further exacerbating cyber inequity as resilient organizations pull ahead, while others struggle with limited resources, resulting in systemic points of failure with significant consequences for the overall #resilience of the ecosystem. Some key findings include: - Growing integration of and dependence on #supplychains, coupled with a lack of visibility and oversight into the #security levels of suppliers, has emerged as the leading cybersecurity risk for organizations. - Rapid implementation of #AI without the necessary security safeguards to ensure #cyberresilience introduces new vulnerabilities and enables more sophisticated and scalable attacks. - Cybercrime-as-a-Service (CaaS) platforms continue to be a dominant and rapidly growing business model, with #ransomware remaining as the top organizational cyber risk year on year. #GenAI tools are lowering the cost of the phishing and social engineering campaigns. - Escalating geopolitical tensions reshape the cyber landscape. Cybersecurity now encompasses human safety and needs to address the real risk to people’s lives when #criticalinfrastructure is attacked or compromised. There are no standard playbooks for dealing with geopolitical risk. Rather, the situation calls for a return to old-fashioned risk management by looking at problems from a business-impact perspective first, before managing and eventually accepting any residual risk. - Proliferation of cyber regulations worldwide forces businesses to navigate an increasingly fragmented landscape of regional and global compliance requirements. While these legal frameworks mandate important cybersecurity practices, they also introduce challenges, such as managing overlapping requirements, achieving compliance in multiple jurisdictions and addressing different enforcement timelines. 

Reflections on Cybersecurity Trends for 2025 While taking some time off at the end of the year, I had a chance to reflect on the trajectory of cybersecurity in 2025. Here are my key observations: Identity Security: There's palpable momentum around Identity Security, not just because I work for an Identity Security company, but because it's evident across the industry. Many enterprises are either already engaged in Identity Projects or have them prioritized for this year. The challenges of managing human and non-human identity sprawl, conducting access reviews, and ensuring identity visibility are real and pressing. In 2025, expect more companies to address these issues head-on. Generative AI (GenAI) in Cybersecurity: While we might not see revolutionary changes immediately, the integration of GenAI into cybersecurity is accelerating. Beyond chatbots and basic advice, we'll witness more sophisticated applications, particularly in agentic AI, which will offer decision-making capabilities based on various Large Language Models (LLMs) and predefined criteria. Additionally, GenAI's role in threat detection will grow, focusing on recognizing complex attack patterns. Automation in Auditing: The burden of manual auditing for compliance with internal policies, external certifications, and government regulations is significant. This year, automation will become even more crucial to streamline these processes, enhancing efficiency with tools that are continuously improving. Market Consolidation: The cybersecurity landscape might see further consolidation. While "best of breed" solutions have their place, there's a clear shift towards platforms that integrate multiple functions. This reduces the complexity of tool management and the data deluge that comes with it. Although some large organizations might stick with specialized tools, the trend leans towards platforms. Application Security: This remains a challenging area, but progress is being made. Companies are combining advanced rule tuning with GenAI to improve security measures. While 2025 might show significant strides, full maturity in this domain might require another year or two. I'm eager to hear your thoughts - did I miss anything or am I off the mark? Let's discuss the future of cybersecurity! 😊

A recent report by Coalition, Inc. reveals a staggering 68% increase in ransomware claims severity, with the average loss now reaching $353,000. This highlights the growing financial impact of cyber threats on businesses, particularly in the first half of 2024. While the frequency of ransomware attacks has decreased, the severity and demand amounts have surged, especially with the emergence of the Play and BlackSuit ransom variants. In contrast, funds transfer fraud (FTF) has seen a slight decline, with a 2% drop in frequency and a 15% decrease in severity. The report also underscores significant material cyber risk aggregation, particularly affecting small-to-midsize and mid-market companies. Notably, nearly 23% of healthcare businesses with revenues exceeding $100 million were impacted by the Change Healthcare attack, while 75% of auto dealers with similar revenue levels faced disruptions from the CDK Global ransomware event. Key findings include: -Ransomware contributes to a 14% increase in overall claims severity. -Business Email Compromise (BEC) remains a leading cyber threat, with a 4% increase in frequency. -FTF losses are on the decline, averaging $218,000. -Businesses with over $100 million in revenue experienced a staggering 140% rise in claims severity. As cyber threats evolve, it’s crucial for organizations to bolster their cybersecurity measures and stay informed about emerging trends. Protecting sensitive data and maintaining robust defenses is more important than ever. Get the full Coalition report here: https://lnkd.in/ersS4MTS Buchanan Ingersoll & Rooney PC's cybersecurity and data privacy team is equipped to assist in navigating the complex landscape of cyber threats. From developing incident response plans to ensuring compliance with regulatory requirements, we help utilities and other critical infrastructure entities safeguard essential services and maintain public trust in their operations. Reach out to us at cyber@bipc.com. #cyber #cybersecurity #ransomware Tiago Henriques Kevin Schmidt NetDiligence®Cyber Security Forum Initiative U.S. Cyber Command Military Cyber Professionals Association The Association of U.S. Cyber Forces (AUSCF) Chris Hughes The Cyber Guild Philip Niedermair “The price of Liberty is eternal vigilance.” Kathryn Wang Alison King Carol G. Trend Micro Chris Lafleur Sheldon Prescott Johnny Jordan Kurt Sanger Alan Gin Dan Lohrmann

Turning Cyber Risk Into Boardroom Metrics That Matter - Forbes Cybersecurity has always come with a translation problem. Technical teams speak in terms of vulnerabilities and threats, while boards want to understand risk in dollars and business impact. As attacks become more costly and regulatory scrutiny grows, however, the gap between technical risk and business accountability is shrinking fast. The Boardroom Is Asking New Questions Boards and executives increasingly want to know: How much risk are we taking on, in real financial terms? Are cybersecurity investments justified? Are we actually reducing exposure—or just reacting to the latest crisis? All fair and valid questions. The pressure to answer these questions isn’t just external. Internally, organizations are moving away from blank-check security budgets. Leaders expect to see risk—and progress—quantified in business language: dollars, business impact, and return on investment. From Jargon to Dollars It is an eternal struggle. For most companies cybersecurity is a cost center, not a revenue-generating function. The better cybersecurity is at achieving its stated objectives, the less necessary it seems—if there are no successful attacks, why spend so much money on defending against them? Cyber risk quantification is quickly gaining ground as a bridge between IT and the C-suite that addresses this challenge. The promise is simple: turn technical scenarios into dollar-based outcomes so everyone is on the same page. CRQ platforms don’t just talk about possible vulnerabilities—they show what a breach could really cost, how an investment reduces exposure, and where risk is shifting across the organization. This approach is becoming the new standard as boards and regulators demand clear evidence of measurable progress. A New Player in the US Market The changing landscape is driving international players to expand their presence. Squalify, a Munich-based cyber risk quantification provider, just announced its U.S. entry, launching with a Bay Area healthcare customer. The company’s platform, backed by Munich Re’s cyber loss data, aims to help organizations move from reactive, compliance-based security toward proactive, ROI-driven strategies. #cybersecurity #CyberRiskQuantification #CRQ #boardofdirectors #riskmanagement #ROI