SMBs set to spend over $3bn on IT security by 2017

SMBs set to spend over $3bn on IT security by 2017

IT outsourcing has become highly prevalent among small to medium-sized businesses (SMB), many of which have decided to utilise the expertise of third party experts to try and deal with certain aspects of their IT infrastructure.

The idea of IT security has become more of a pressing concern to many companies and organisations, especially in the wake of a number of a high-profile scandals involving some of the world's most well-known brands and names.

That has led to a substantial flow of cash being pumped into the provision of security services, with the amount of spending set to increase even further over the course of the next few years.

A new forecast from market research firm Canalys believes that this worldwide trend will see SMBs spend over $3.3 billion (£1.95 billion) in 2017.

In explaining their findings, researchers suggested the annual growth rate of hosted security services could grow at a compound rate of as much as 36 per cent over the course of the next three years.

Senior analyst Nushin Vaiani stated that the prospective results were mainly due to more competitive prices combined with a greater level of awareness concerning the issues at hand.

He said: "In 2013, IT security became more important to small businesses, driving overall security budgets upwards. Small businesses are beginning to understand the need to demonstrate to customers that their information is being handled securely, especially in light of numerous data breaches and the NSA scandal."

While many SMBs are sure to benefit from the undoubted expertise on offer, there are also set to be benefits for the security vendors themselves, many of which have concentrated on providing products ideally suited to SMBs. Features of such products include simple deployment, solid data protection and ease of management.

When combined with higher prices, there has been more opportunities for price-sensitive SMBs to gain a greater opportunity of taking advantage of  better value investments.