Security spending takes up from 3 percent to 4 percent of IT budgets today, the Meta Group said in a report on calculating information-security spending.
A chief financial officer typically defines ROI as dollars spent balanced by additional revenue or accrued profit, but “security doesn’t generate revenue or improve profits in a predictable manner,” Meta analyst Chris Byrnes said.
The rate of spending is expected to be slower in Europe than in the U.S., with a 5 percent to 7 percent CAGR versus a 10 percent CAGR, Meta said.
The major reasons are the lower intensity of publicity regarding cyber-crime and compliance issues.
In the Asia-Pacific region, spending rates are expected to be similar to Europe in mature economies, such as Singapore, Japan, Australia, and South Korea.
Security spending in developing countries, such as Malaysia, Thailand, and Philippines, is only starting.
Within verticals, the more regulated industries and those that conduct a lot of electronic financial transactions over the public Internet are expected to continue spending more on security.
More info: http://www.techweb.com/wire/story/TWB20040607S0013