The rise of Coronavirus affected every sector of the market today. But how are cybersecurity firms doing amidst its threat?
The pandemic had bad effects on many companies and firms today.
But whatever the company, they cannot afford to get hacked by criminals. And that is good news for the cybersecurity industry. How so?
Cybersecurity Firms Amidst Coronavirus
Cybersecurity firms are one of the few sectors that are rising amidst the pandemic. Some of these firms saw a rise in their stocks.
Also, more and more cybersecurity startups are rising and investors are flocking in. Making it clear that the sector is not showing any signs of slowing down.
Why? Because people can’t cheap out on security right now. Even though companies are on a tighter budget right now, cybersecurity is an area they can’t cut.
If they do, they’re exposed to cyberattacks which can cause more damage. Then result in even more spending on the company’s side.
For example, ransomware cost FedEx a whopping $300 million loss in revenue and damage.
Also, with the rise of remote work, security from cyber threats is vital more than ever. As these criminals are taking advantage of weaknesses.
In fact, phishing scams exploded in the wake of the pandemic. Attacking healthcare organizations and other sectors.
Thus, making cybersecurity now a must-have and not only nice-to-have. And companies are seeing these. Hence the rise of firms providing services to aid in the security of these companies.
But not all firms are soaring high like the others. Who are the winners and who are the losers?
Winning and Losing Cybersecurity Firms
Winners: Cloud and Remote Services
Companies like Crowdstrike, Okta, and Fortinet saw a rise of 25% only a few months ago.
Making it clear that cloud-based security providers can stand strong and gain a lot today. VPN providers are also rising.
Why? Because it lets protects user’s phones, laptops, and other devices remotely. Which is very convenient in today’s rising remote work set-up.
Thus, companies can ensure their workers have the right protection they need.
Also, managed service providers win in this era. They can let small and medium-sized companies outsource their security. So, it can save them from making a full security team or getting a CISO.
But who are the cybersecurity losers in today’s pandemic-stricken world?
Losers: Legacy Providers and Security Auditors
The sector as a whole will and is rising during the pandemic. But not all companies will rise with it, some will suffer.
Legacy companies selling tools like firewalls and devices are taking a hit. This is due to the limits in moving today.
Thus, making it harder for companies and workers to get and install these tools. Also, attacks today have a different focus.
Then, companies offering security audits are also taking a hit. This is because it is harder to send auditors to make audits today.
Also, some companies are pausing standards-compliance audits for the time being.
But we don’t know what is waiting for these firms after the pandemic. Let us wait and see.
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