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IBM and Palo Alto Networks Find Platformization is Key to Reduce Cybersecurity Complexity

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IBM and Palo Alto Networks released a global study revealing significant challenges in cybersecurity complexity. Organizations are managing an average of 83 security solutions from 29 vendors, with security fragmentation costing companies approximately 5% of annual revenue. 75% of organizations pursuing consolidated security agree better integration across security platforms is crucial.

The research shows that companies with high security platformization report better business outcomes, with 7 out of 10 seeing improved operational efficiencies and revenue generation. Organizations using platformization experience nearly 4 times better ROI and reduce incident response times by an average of 72-84 days. With 90% of executives planning to scale AI within two years, platform approaches are becoming important for security preparedness.

IBM e Palo Alto Networks hanno pubblicato uno studio globale che rivela sfide significative nella complessità della cybersecurity. Le organizzazioni gestiscono in media 83 soluzioni di sicurezza provenienti da 29 fornitori, con una frammentazione della sicurezza che costa alle aziende circa il 5% del fatturato annuale. Il 75% delle organizzazioni che cercano di consolidare la sicurezza concordano sul fatto che una migliore integrazione tra le piattaforme di sicurezza sia fondamentale.

La ricerca mostra che le aziende con una forte piattaformizzazione della sicurezza segnalano risultati aziendali migliori, con 7 su 10 che notano efficienze operative migliorate e generazione di fatturato. Le organizzazioni che utilizzano la piattaformizzazione registrano un ROI quasi 4 volte migliore e riducono i tempi di risposta agli incidenti di una media di 72-84 giorni. Con il 90% dei dirigenti che pianificano di espandere l'IA entro due anni, gli approcci basati su piattaforme stanno diventando importanti per la preparazione alla sicurezza.

IBM y Palo Alto Networks publicaron un estudio global que revela desafíos significativos en la complejidad de la ciberseguridad. Las organizaciones administran un promedio de 83 soluciones de seguridad de 29 proveedores, con una fragmentación de la seguridad que cuesta a las empresas aproximadamente el 5% de sus ingresos anuales. El 75% de las organizaciones que buscan una seguridad consolidada están de acuerdo en que una mejor integración entre las plataformas de seguridad es crucial.

La investigación muestra que las empresas con alta platformización de seguridad informan mejores resultados comerciales, con 7 de cada 10 que observan una mejora en la eficiencia operativa y la generación de ingresos. Las organizaciones que utilizan platformización experimentan un ROI casi 4 veces mejor y reducen los tiempos de respuesta a incidentes en un promedio de 72-84 días. Con el 90% de los ejecutivos planeando escalar la IA en dos años, los enfoques de plataforma se están volviendo importantes para la preparación en seguridad.

IBMPalo Alto Networks는 사이버 보안의 복잡성에 대한 주요 도전과제를 드러내는 글로벌 연구를 발표했습니다. 조직들은 평균 29개의 공급업체로부터 83개의 보안 솔루션을 관리하고 있으며, 보안의 단편화로 인해 기업들은 연간 수익의 약 5%를 잃고 있습니다. 75%의 통합 보안을 추구하는 조직들은 보안 플랫폼 간의 더 나은 통합이 중요하다고 동의합니다.

연구 결과, 보안 플랫폼화를 강력히 진행 중인 기업들은 더 나은 비즈니스 성과를 보고하며, 10개 중 7개가 운영 효율성과 수익 창출이 향상되었다고합니다. 플랫폼화를 사용하는 조직들은 ROI가 거의 4배 더 좋고, 사고 대응 시간을 평균 72-84일 단축합니다. 90%의 경영진이 2년 이내에 AI를 확장할 계획을 가지고 있으므로, 플랫폼 접근 방식이 보안 준비에 중요해지고 있습니다.

IBM et Palo Alto Networks ont publié une étude mondiale révélant des défis significatifs dans la complexité de la cybersécurité. Les organisations gèrent en moyenne 83 solutions de sécurité provenant de 29 fournisseurs, la fragmentation de la sécurité coûtant aux entreprises environ 5 % de leur chiffre d'affaires annuel. 75 % des organisations cherchant à consolider leur sécurité conviennent que la meilleure intégration des plateformes de sécurité est cruciale.

La recherche montre que les entreprises avec une forte plateforme de sécurité rapportent de meilleurs résultats commerciaux, avec 7 sur 10 observant des améliorations de l'efficacité opérationnelle et de la génération de revenus. Les organisations qui utilisent la plateforme bénéficient d'un ROI presque 4 fois meilleur et réduisent les temps de réponse aux incidents d'une moyenne de 72 à 84 jours. Avec 90 % des dirigeants prévoyant de développer l'IA dans les deux ans, les approches basées sur des plateformes deviennent importantes pour la préparation à la sécurité.

IBM und Palo Alto Networks haben eine globale Studie veröffentlicht, die bedeutende Herausforderungen in der Komplexität der Cybersicherheit aufzeigt. Organisationen verwalten im Durchschnitt 83 Sicherheitslösungen von 29 Anbietern, wobei die Fragmentierung der Sicherheit Unternehmen etwa 5% des Jahresumsatzes kostet. 75% der Organisationen, die eine konsolidierte Sicherheit anstreben, sind sich einig, dass eine bessere Integration der Sicherheitsplattformen entscheidend ist.

Die Forschung zeigt, dass Unternehmen mit hoher Plattformisierung der Sicherheit bessere Geschäftsergebnisse berichten, wobei 7 von 10 eine Verbesserung der betrieblichen Effizienz und der Umsatzgenerierung feststellen. Organisationen, die Plattformisierung nutzen, weisen eine fast viermal bessere Rendite auf und reduzieren die Vorfallreaktionszeiten um durchschnittlich 72-84 Tage. Mit 90% der Führungskräfte, die planen, KI innerhalb von zwei Jahren zu skalieren, werden plattformbasierte Ansätze für die Sicherheitsvorbereitung immer wichtiger.

Positive
  • Organizations with platformized security report 4x better ROI
  • Platform approach reduces security incident response time by 72-84 days
  • 80% of platformization adopters achieve full visibility into threats
  • 70% of companies with high security platformization report improved business outcomes
Negative
  • Organizations juggling 83 different security solutions from 29 vendors
  • Security fragmentation costs companies 5% of annual revenue
  • 52% of executives report complexity limiting cyber threat response
  • 41% indicate security fragmentation increases procurement costs

Insights

This comprehensive study presents compelling evidence for a major shift in enterprise cybersecurity strategy, with significant implications for both IBM and the broader technology sector. The research reveals a critical inefficiency in current cybersecurity approaches, with organizations managing an overwhelming 83 different security solutions from 29 vendors. This fragmentation translates to an estimated 5% annual revenue loss - a staggering figure that should capture the attention of C-suite executives and shareholders alike.

The strategic partnership between IBM and Palo Alto Networks represents a calculated response to this market opportunity. Their joint platform approach addresses a important pain point, as 52% of executives identify complexity as their primary cybersecurity challenge. The reported 72 and 84-day improvements in threat identification and containment times for platformized organizations represent substantial operational advantages that could translate into significant cost savings and risk reduction.

The timing of this initiative is particularly strategic given the accelerating AI adoption curve, with 90% of executives planning to scale AI operations within two years. The integration of AI capabilities into a unified security platform positions both companies to capitalize on this trend while addressing the growing complexity of cyber threats.

The establishment of a joint Cyber Range facility in Cambridge demonstrates a commitment to practical implementation and customer success, potentially creating a powerful competitive moat through customer lock-in and ecosystem development. This could drive recurring revenue streams and deeper customer relationships, particularly valuable in the enterprise security market where switching costs are high.

Global survey reveals 75% of surveyed organizations pursuing a consolidated approach to security agree better integration across security, hybrid cloud, AI and other technology platforms is crucial

ARMONK, N.Y. and SANTA CLARA, Calif., Jan. 28, 2025 /PRNewswire/ -- New global research from the IBM (NYSE: IBM) Institute for Business Value (IBV) and Palo Alto Networks® (NASDAQ: PANW), found that surveyed organizations are facing security complexity challenges as they juggle an average of 83 different security solutions from 29 vendors. It also shows 7 out of 10 surveyed companies with a high degree of security platformization report their cybersecurity investments have helped business outcomes such as operational efficiencies and revenue generation.

In the study, "Capturing the cybersecurity dividend: How security platforms generate business value," more than half (52%) of surveyed executives note fragmentation of security solutions is limiting their ability to deal with cyber threats, but 75% of organizations that have embraced security platformization agree that better integration across security, hybrid cloud, AI, and other technology platforms is crucial. The analysis suggests the trend of adding more solutions to combat evolving security threats is contributing to inefficiency – impacting both performance and the bottom line – while moving to a platformized security approach can help businesses achieve reduced response times and costs without sacrificing security efficacy.

Cybersecurity Complexity is a Daunting Reality
Increased digital interconnectedness expands attack surfaces and can create new cybersecurity vulnerabilities. Cyberattacks are becoming more sophisticated and harder to defend against, while AI is being used by both defenders and attackers, creating a race in cybersecurity capabilities.

In an evolving threat landscape, surveyed executives estimate security fragmentation and complexity costs their organizations an average of 5% of their annual revenue. For a $20 billion annual revenue company, that's a $1 billion cost to the business in aggregate. Tally the costs of security incidents, lost productivity, failed digital transformations, stalled AI initiatives, loss of customer trust and reputational damage and the numbers add up.

"Organizations continue to be challenged with updating their security posture to address new threats, while simultaneously being pressed to reduce complexity and decrease spend," said Mark Hughes, Global Managing Partner for Cybersecurity Services, IBM. "Security executives need to enable innovation, protect assets and derive value from their cybersecurity investments to help their organizations thrive and further their business goals."

"We have seen the positive impacts of adopting a platformized approach to security, and the benefits it delivers to organizations. In today's AI-fueled world, strong partnerships are more essential than ever," said Karim Temsamani, President, Next Generation Security, Palo Alto Networks. "IBM and Palo Alto Networks are aligned on a common vision of creating better outcomes for our customers - whether in value, operational, or security…and platformization accomplishes all of them. This isn't just about improving fragmentation today, it's about enabling better outcomes for the future."

Key insights from surveyed business leaders:

  • 52% of executives say complexity is the biggest impediment to their cybersecurity operations;
  • 80% agree they face pressure to reduce the cost of security, and 41% say security fragmentation has driven up procurement costs;
  • 4 out of 5 non-platform organizations say their security operations cannot effectively deal with the sheer quantity of threats and attacks;
  • 80% of platformization adopters say they have full visibility into potential vulnerabilities and threats; and,
  • For platformized organizations, mean time to identify (MTTI) and mean time to contain (MTTC) security incidents are shorter by an average of 72 and 84 days, respectively.

Enhancing Businesses with Platformization: Unleashing the Power of Digital Transformation
In today's world, the research finds effective security requires platformization. Consolidating multiple tools into a unified platform not only bolsters security posture but enables organizations to experience nearly 4 times better return on investment (ROI) from their cybersecurity investments, leading to revenue generation and increased operational efficiencies.

When it comes to AI, a platform approach can also enable an organization to better ingest and analyze data to deliver actionable insights. With 90% of surveyed executives expecting to scale, optimize, or innovate with AI within the next two years, integrating AI into their platforms can play a critical role in advancing their security preparedness. For example, accelerating adoption of agentic AI for security and tapping platformization for fewer investment cycles; or, using platformization to create the common governance needed to deliver the AI capabilities shaping the future.

By adopting a platformization approach, businesses can align technologies, drive innovation, and prioritize security as a core business requirement. Through IBM and Palo Alto Networks' strategic partnership, the companies are bringing together leading security platforms, AI, and transformation capabilities to help organizations confidently navigate their digital transformation journey, achieve their desired outcomes and drive substantial business value.

Tips for Platformization Success

  • Choose partners that streamline your security mission and trim those that don't. Critically evaluate current and potential technology, services, and support partners, and make hard decisions about where to double down and when to part ways.
  • Run your playbook. Stage incident response drills to assess where a unified platform can deliver the greatest impact. Take action to improve your incident response capabilities.
  • Help your business get prepared to respond to threats by putting it to the test. Visit a cyber range to prepare business and technical teams to address the latest cyber threats through an immersive, organization-wide business-focused engagement. IBM and Palo Alto Networks now provide a joint Cyber Range experience in Cambridge, Massachusetts, where clients can leverage the facility to support continuous improvement, training, and change management as they transform their security operating models with platformization.

Additional Resources:

Study Methodology
This IBM Institute of Business Value (IBV) research, conducted in collaboration with Oxford Economics and published in partnership with Palo Alto Networks, surveyed 1,000 executives across 21 industries and 18 countries from July through September 2024. The IBM IBV team then analyzed insights and data from respondents to facilitate the creation of a "platformization index," which measures the extent to which an organization has moved toward security platformization, then used that index to ascertain the relationship between security platformization and security and business outcomes.

The IBM IBV, IBM's thought leadership think tank, combines global research and performance data with expertise from industry thinkers and leading academics to deliver insights that make business leaders smarter. For more world-class thought leadership, visit: www.ibm.com/ibv.

About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. More than 4,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM's breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM's long-standing commitment to trust, transparency, responsibility, inclusivity and service. Visit ibm.com for more information.

About Palo Alto Networks
Palo Alto Networks is the global cybersecurity leader, committed to making each day safer than the one before with industry-leading, AI-powered solutions in network security, cloud security and security operations. Powered by Precision AI, our technologies deliver precise threat detection and swift response, minimizing false positives and enhancing security effectiveness. Our platformization approach integrates diverse security solutions into a unified, scalable platform, streamlining management and providing operational efficiencies with comprehensive protection. From defending network perimeters to safeguarding cloud environments and ensuring rapid incident response, Palo Alto Networks empowers businesses to achieve Zero Trust security and confidently embrace digital transformation in an ever-evolving threat landscape. This unwavering commitment to security and innovation makes us the cybersecurity partner of choice.

At Palo Alto Networks, we're committed to bringing together the very best people in service of our mission, so we're also proud to be the cybersecurity workplace of choice, recognized among Newsweek's Most Loved Workplaces (2021-2024), with a score of 100 on the Disability Equality Index (2024, 2023, 2022), and HRC Best Places for LGBTQ+ Equality (2022). For more information, visit www.paloaltonetworks.com.

Media Contacts:
Joel Rushing, IBM
Joel.Rushing@ibm.com

Nicole Hockin, Palo Alto Networks
nhockin@paloaltonetworks.com 

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SOURCE IBM

FAQ

How much revenue do companies lose due to security fragmentation according to IBM's 2025 study?

According to the IBM study, organizations lose approximately 5% of their annual revenue due to security fragmentation and complexity.

What ROI improvement do companies see from IBM's security platformization approach?

Companies implementing security platformization experience nearly 4 times better return on investment (ROI) from their cybersecurity investments.

How many security solutions do companies manage according to IBM's 2025 research?

Organizations are managing an average of 83 different security solutions from 29 vendors.

What percentage of IBM's surveyed companies plan to scale AI within two years?

90% of surveyed executives expect to scale, optimize, or innovate with AI within the next two years.

How much faster do IBM's platformized organizations resolve security incidents?

Organizations using platformization reduce mean time to identify (MTTI) and mean time to contain (MTTC) security incidents by 72 and 84 days respectively.

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