Share with your friends










Submit

Analytics Magazine

Security spending potentially a misleading indicator of success

Organizations spend an average of 5.6 percent of the overall IT budget on IT security and risk management, according to the most recent IT Key Metrics Data from Gartner, Inc. However, IT security spending ranges from approximately 1 percent to 13 percent of the IT budget and is potentially a misleading indicator of program success, analysts said.

“Clients want to know if what they are spending on information security is equivalent to others in their industry, geography and size of business in order to evaluate whether they are practicing due diligence in security and related programs,” say Rob McMillan, research director at Gartner. “But general comparisons to generic industry averages don’t tell you much about your state of security. You could be spending at the same level as your peer group, but you could be spending on the wrong things and be extremely vulnerable. Alternatively, you may be spending appropriately but have a different risk appetite from your peers.”

According to Gartner, the majority of organizations will continue to misuse average IT security spending figures as a proxy for assessing security posture through 2020.

Without the context of business requirements, risk tolerance and satisfaction levels, the metric of IT security spending as a percentage of the IT budget does not, by itself, provide valid comparative information that should be used to allocate IT or business resources. Moreover, IT spending statistics alone do not measure IT effectiveness and are not a gauge of successful IT organizations. They simply provide an indicative view of average costs, without regard to complexity or demand.

Explicit security spending is generally split among hardware, software, services (outsourcing and consulting) and personnel. However, any statistics on explicit security spending are inherently “soft” because they understate the true magnitude of enterprise investments in IT security, since security features are being incorporated into hardware, software, activities or initiatives not specifically dedicated to security.

Gartner’s experience is that many organizations simply do not know their security budget. This is partly because few cost accounting systems break out security as a separate line item, and many security-relevant processes are carried out by staff who are not devoted full-time to security, making it impossible to accurately account for security personnel. In most instances, the chief information security officer (CISO) does not have insight into security spending throughout the enterprise.

To identify the real security budget, there are many places to look, such as networking equipment that has embedded security functions, desktop protection that may be included in the end-user support budget, enterprise applications, outsourced or managed security services, business continuity or privacy programs, and security training that may be funded by HR.

According to Gartner research, secure organizations can sometimes spend less than average on security as a percentage of the IT budget. The lowest-spending 20 percent of organizations are composed of two distinctly different types of organizations: 1) Unsecure organizations that underspend; and 2) secure organizations that have implemented best practices for IT operations and security.

Gartner’s view is that enterprises should be spending between 4 percent and 7 percent of their IT budgets on IT security – lower in the range if they have mature systems, higher if they are wide open and at risk. This represents the budget under the control and responsibility of the CISO, and not the “real” or total budget.

Related Posts

  • 44
    Security analytics solutions are delivering deeper visibility into organizations’ security data than ever before, but deployment and day-to-day usage remain challenging, according to a new Ponemon Institute survey sponsored by SAS.
    Tags: security, percent, organizations
  • 40
    The CIA wants the public to know much more about what it’s doing, and analytics plays a key role in the agency’s new approach. This development is not just a few pronouncements to build public support, but a major change in how the CIA and other intelligence agencies will function.…
    Tags: security
  • 37
    January/February Cybersecurity: new threats, new solutions The IOT and related, hidden security risks Can analytics save U.S. healthcare system? March/April Supply chain advances and solutions Software survey: vehicle routing Capitalizing on AI & machine learning May/June Social media, marketing & analytics Real-time customer personalization Next generation revenue management July/August Software…
    Tags: security
  • 36
    Four analytic technologies recently patented by analytic software firm FICO are being incorporated into solutions for cyber security, the Internet of Things (IoT), model governance and optimization.
    Tags: security
  • 32
    A recent report by Scrutinise Research and Analysis finds that immediate action is required to avert potentially disastrous security breaches of connected devices by cyber terrorists and criminals in the current “Wild West” of the Internet of Things (IoT). The report, “Securing the Internet of Things,” recommends a four-pronged approach…
    Tags: security

Analytics Blog

Electoral College put to the math test


With the campaign two months behind us and the inauguration of Donald Trump two days away, isn’t it time to put the 2016 U.S. presidential election to bed and focus on issues that have yet to be decided? Of course not.




Headlines

Survey: Despite the hype, AI adoption still in early stages

The hype surrounding artificial intelligence (AI) is intense, but for most European businesses surveyed in a recent study by SAS, adoption of AI is still in the early or even planning stages. The good news is, the vast majority of organizations have begun to talk about AI, and a few have even begun to implement suitable projects. There is much optimism about the potential of AI, although fewer were confident that their organization was ready to exploit that potential. Read more →

Data professionals spend almost as much time prepping data as analyzing it

Nearly 40 percent of data professionals spend more than 20 hours per week accessing, blending and preparing data rather than performing actual analysis, according to a survey conducted by TMMData and the Digital Analytics Association. More than 800 DAA community members participated in the survey held earlier this year. The survey revealed that data access, quality and integration present persistent, interrelated roadblocks to efficient and confident analysis across industries. Read more →

UPCOMING ANALYTICS EVENTS

INFORMS-SPONSORED EVENTS

2017 Winter Simulation Conference (WSC 2017)
Dec. 3-6, 2017, Las Vegas

CAP® EXAM SCHEDULE

CAP® Exam computer-based testing sites are available in 700 locations worldwide. Take the exam close to home and on your schedule:


 
For more information, go to 
https://www.certifiedanalytics.org.