AT&T: Enterprises may someday spend $40 billion annually on cybersecurity
AT&T (NYSE: T) expects the annual global market for cybersecurity products to reach $40 billion someday, Frank Jules, president of AT&T's global enterprise unit, told the Morgan Stanley TMT conference being held in Barcelona on Wednesday, according to Reuters.
Enterprises are expected to double or triple their spending on cybersecurity in the coming years as attacks become more sophisticated and frequent, and AT&T expects to grab $1 billion of that market opportunity, Jules said.
Cyber attacks which are increasingly difficult to detect have doubled on AT&T networks in the past four months.
"We see them on a daily basis and they are now getting smaller instead of coming in huge waves, which were easier for us to detect. Every chief information officer at major corporations that I meet wants to talk about security. I think this will be a $40 billion market one day," Jules noted.
TechNavio has a similar view of enterprise cybersecurity spending. The research firm forecast that the enterprise security appliance market will increase at a 10 percent compound annual growth rate (CAGR) through 2015.
A key factor contributing to this market growth is the increase in sophisticated cyber security threats. At the same time, the increasing complexity of IT security could pose a challenge to the growth of this market, the research firm noted.
Enterprises are increasingly coming under cyber attack and need protection for their networks and data. Vendors who recognize this trend will be able to grab a chunk of that expanding market.