Companies just have to spend on security, says DataPro

In today`s digital economy, where knowledge and information-based business is what it is all about, the need to establish and maintain high levels of security has never been more imperative - and this importance is only going to increase.

This is according to Douglas Reed, MD of premier Internet service provider, DataPro. Reed said while the ICT sector has suffered during the last two years as companies have cut back on IT spending and as margins have come under pressure, security companies have often managed to grow their businesses substantially and, in many instances, have bucked the downward, or stagnant, trend.

"This is because no matter how tight trading may be security is something that companies need to keep their eyes on, especially organisations such as banks and financial organisations who particularly need to safeguard the integrity of their information and that of their clients. Because of this security companies have been able to grow their revenues as companies invest in solutions to protect their networks from intrusions; be it spoofing, denial of service attacks, or hacking. The other frightening aspect is that pundits are increasingly talking about the higher risk of terrorist-based cyber attacks, or cyber terrorism, something that could create chaos in the international business community and quite likely could put some of the victims out of business - or at least cause serious disruption."

Thanks to this continual security risk companies are literally forced to find money to maintain high levels of security. In addition to the fact that security threats are becoming more sophisticated, the latest networks being developed and deployed are also becoming more complicated - making it harder for companies to secure them. It is understandable then, that while companies are generally reducing their ICT budgets, they are increasing the share being assigned to security.

"These days enterprise networks are collaborative. They are becoming business enablers by, for instance, linking to clients and suppliers in order to streamline and speed up business communication. In order to conduct business in this completely digital fashion, the gateway, server and client levels of the network have to be interconnected. This means that all information, including business-critical information, is often sitting at a multitude of levels on the network - with each point needing to be protected. This makes the whole process far more complicated and, naturally, that much more expensive."

He said it is these multiple levels of network vulnerability - combined with the increased sophistication of cyber attacks - that have created a "fairly robust" security industry.

"Companies know that if they are successfully hacked, or if they lose vital information - their`s or a client`s - many companies and individuals will be wary of doing business with them. If you cannot trust a company with vital personal or business information then you are naturally going to ponder about dealing with them. It is human nature. It is because of this that security will remain a key consideration and why a bigger percentage of ICT budgets will end up being spent in this domain."