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Sophisticated Cybercrimes Call for Security Start-ups, Service Integrators

Sophisticated Cybercrimes Call for Security Start-ups, Service Integrators
May 03, 2017

The focus on security solutions is stronger than ever as cyber-attacks and criminals become more sophisticated by the day. In fact, PriceWaterhouseCoopers’ Global Economic Crime Survey 2016 reported cybercrime as the second most important crime economically. And this current has global implications; the largest cyber-attack in the history – the Dyn Cyber-attack – caused large-scale internet outage across the US and Europe, and renewed the quest for advanced security solutions. Similarly, the Central Bank of Bangladesh lost US$ 81 million as a result of a cyber-attack, and US$ 850 million due to a fraudulent transaction. 

PriceWaterhouseCoopers’ Global Economic Crime Survey 2016 reported cybercrime as the second most important crime

The situation has become so alarming that enterprises are continually on the lookout for sophisticated security solutions. As a result, niche security start-ups are attracting massive investments. In 2016 alone, the investment in cybersecurity touched a record US$ 3.1 billion. Among them, the largest funding for a cyber-protection firm in 2016 totaled $180 million – for Dallas-based StackPath. And, the investment trend is only gaining momentum; during the first two months of 2017, the cybersecurity industry already attracted over US$ 300 million in funding. 

In 2016 alone, the investment in cyber security touched a record US$ 3.1 billion

In 2017 itself, I visited a few promising start-ups operating in niche cybersecurity areas. For instance, with $100 million Series D funding in 2016, Cylance became one of the fastest growing cybersecurity start-ups in the sector of artificial Intelligence-based predictive cybersecurity services. On a similar note, KKR invested US$ 65 million in Darktrace – the world’s leading machine learning company for cybersecurity.  

And investment in the sector is gaining more traction with the rise of dedicated groups and funding ventures. Consider, for example, leading US-based software provider Symantec. Recently, they created a new business offshoot called Symantec Ventures which will offer to fund cybersecurity startups. Not only will this give new companies a head start on their cybersecurity journey, but they can now tap into Symantec’s portfolio of exclusive tools – making their innovation better, sharper, and more robust.

The adoption of niche and advanced security solutions is clearly on the rise. Companies across the globe have started collaborating with start-ups who offer disruptive cybersecurity services. These trends in cyber-protection have unlocked a high-potential market for ‘Service Integrators’ (SI).

Companies across the globe have started collaborating with start-ups who offer disruptive cyber security services

A vendor that promises to ‘solve’ cybersecurity isn’t enough – when it comes to sophisticated cybercrimes, there’s no such thing as a one-stop-shop. Enterprises should go beyond adding a layer of security – and partner with SI’s who can build a tailor-made suite that offers end-to-end, as well as domain-specific, security.

When it comes to sophisticated cybercrimes, there’s no such thing as a one-stop-shop.

They can evaluate, adopt, and deliver these emerging start-up cybersecurity solutions and technologies ‘As a Service’ to global enterprises. Equipped with years of experience in working with traditional and emerging security solutions, SIs can play a vital role in fortifying cybersecurity solutions – defending the enterprise-wide security value chain from today’s sophisticated and persistent threats.