Gartner Says IT Security Spending Will Be More Than 5 Percent of IT Budgets in Most Industries in 2003
Gartner Analysts Discuss the Outlook for the Security Industry During the Gartner IT Security Summit in Washington, D.C.
WASHINGTON, D.C., June 3, 2003 — In most industries, 2003 will be the first year in history in which more than 5 percent of the IT budget will be spent on security, according to Gartner, Inc. (NYSE:IT) (NYSE:ITB). That spending level means that security spending will have grown at a compound annual growth rate of 28 percent since 2001, while IT budgets have grown at a compound annual growth rate of only 6 percent over that same time period.
Gartner analysts are providing their outlooks for the security industry this week during the Gartner IT Security Summit, which is being held June 2-4, at the Washington Hilton in Washington, D.C.
"The focus on critical infrastructure protection means that the government, utilities, transportation and energy sectors will be forced to spend more on security," said John Pescatore, vice president and research fellow at Gartner.
"In addition, increased enforcement of copyright laws and liability concerns will force universities to increase security spending. Those vertical industries will be the most attractive targets for security vendors," Pescatore said.
An overall increase in IT spending is occurring, but Gartner analysts said that does not mean security organizations can spend freely. In fact, enterprise security organizations will be pressured to control spending or face across-the-board cuts.
"Security spending can't continue to consume ever-increasing portions of the IT budget. No enterprise can afford to spend more on insurance than on new product development," Pescatore said. "By 2005, security groups that can't demonstrate security effectiveness metrics will experience flat to declining IT security funding."
Gartner analysts are providing further information on the security market during the Gartner IT Security Summit. The three-day summit is exploring critical issues, best practices and case studies through panel discussions with top experts from the private and public sectors. Also included are breakout sessions tailored to critical infrastructure sectors such as transportation; energy, utilities and water; banking and financial services; telecommunications; information services; and vital health, safety and emergency services. Additional information about the conference is available at www.gartner.com/us/itsecurity.
Further in-depth analysis on security is available to subscribers of the Gartner IT Security Directors Membership Program. This powerful tool is designed to help those charged with ensuring optimal security for their business and IT infrastructures achieve their goals, and also help them to manage costs. The Gartner IT Security Directors Membership Program provides market analysis, decision support tools, on-site workshops, newsletters, bulletins, and access to analysts via a Web portal designed specifically to address the growing issues and concerns of IT security directors. For more information on Gartner's IT Security Directors Membership Program, visit www.gartner.com/pages/story.php.id.3436.s.8.jsp or call Gartner at 203/316-1233.
About Gartner:
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