Investment trends in cloud cybersecurity
Dr. Evangelo Damigos; PhD | Head of Digital Futures Research Desk
- Competitive Differentiation
Publication | Update: Sep 2022
As cyber threats follow enterprises into the cloud, two key software markets are set to converge into a single discipline for more effective threat prevention, detection and response.
As companies accelerate the move of their operations, applications and digital services into the cloud, security challenges have intensified. Tools that were once effective at diagnosing and monitoring the performance of IT infrastructure are now falling short, requiring a more modern approach.
“Cloud-era IT architectures have become much more dynamic and distributed, making them harder to monitor and analyze,” says equity analyst Keith Weiss, who heads U.S. Software Research. “Data often gets trapped in silos, limiting a company’s overall ability to detect and quickly respond to alerts.”
To mitigate new threats, two previously distinct markets, Security Analytics and Observability, are poised to converge into a combined discipline, enabling more effective threat prevention, detection and response.
The first market, Security Analytics, is the more traditional approach largely tied to on-premise application architectures. It uses data collection, data aggregation and analysis tools for threat detection and security monitoring. These tools allow an organisation to analyse security events to detect potential threats before they can negatively affect the company's infrastructure.
For investors eyeing opportunities, cloud security vendors may have an advantage, at least initially. “While the Observability players may have a better ability to digest and analyse large amounts of data versus those primarily in the security domain, we expect the market to favor converged solutions from cloud security vendors in the near-term,” says Weiss. “This is largely due to their deeper level of domain expertise and closer relationships with decision makers in the security department.”
However, opportunities may also exist for modern observability players among mid-market customers running a cloud operating model. This reflects a growing trend towards convergence across development, operations and security teams for these types of customers.
Read more: https://www.morganstanley.com/ideas/cloud-cybersecurity-convergence
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