Firms Expand Security to Counter More Advanced Attacks

Rhea-AI Summary

The 2024 ISG Provider Lens™ global Cybersecurity report highlights the growing adoption of advanced security systems by enterprises worldwide. Facing sophisticated cyber threats, companies are increasingly turning to extended detection and response (XDR) and security service edge (SSE) solutions. These technologies offer more comprehensive and scalable security frameworks for modern IT environments, including cloud-based applications and remote work setups.

XDR platforms provide a holistic view of an organization's security posture by correlating data from multiple security layers. SSE solutions centralize security policies and enforce them across all endpoints and applications. The report also notes the rising importance of identity and access management (IAM) and the demand for vendors offering open standards and pre-built integrations with existing security tools.

Positive

• Growing demand for advanced security capabilities like XDR and SSE
• XDR platforms offer holistic view of security posture across multiple layers
• SSE solutions help establish zero-trust security and form the foundation for SASE architectures
• Integration of AI and ML algorithms in XDR systems for better threat prediction and automated responses
• Rising importance of identity and access management (IAM) in cybersecurity solutions

Negative

• Enterprises face new security threats and bigger security management challenges due to IT modernization
• Traditional perimeter-based security failing to protect remote cloud users
• Companies struggling to secure numerous cloud applications

Insights

Cybersecurity Analyst

The increasing adoption of advanced security systems like Extended Detection and Response (XDR) and Security Service Edge (SSE) represents a significant shift in enterprise cybersecurity strategies. This trend is driven by the growing complexity of IT environments and the evolving nature of cyber threats.

XDR's integration of AI and ML algorithms for predictive threat detection and automated response is particularly noteworthy. This technology not only enhances security capabilities but also addresses the chronic shortage of skilled cybersecurity professionals. The convergence of XDR with SIEM systems creates a more unified and efficient security architecture, which is important for managing the vast amounts of data generated in modern IT environments.

SSE's role in enabling secure access to cloud applications from any location aligns perfectly with the ongoing trend of remote work and distributed IT systems. Its ability to reveal and secure unapproved cloud applications (shadow IT) is a game-changer for many organizations struggling with decentralized IT management.

The report's emphasis on pre-emptive security measures and the integration of identity and access management (IAM) indicates a shift towards more proactive and holistic security strategies. This approach is essential in an era where cyberattacks can rapidly damage corporate reputations and disrupt business operations.

For investors, this trend suggests potential growth opportunities in companies specializing in XDR, SSE and integrated cybersecurity solutions. However, the recent incident with CrowdStrike's failed software update serves as a reminder of the complexities and potential vulnerabilities even within advanced security systems.

Technology Industry Analyst

The cybersecurity market is undergoing a significant transformation, as evidenced by the growing demand for XDR and SSE solutions. This shift is driven by the increasing complexity of IT infrastructures and the limitations of traditional perimeter-based security models in protecting cloud-based and remote work environments.

The convergence of various security technologies, such as XDR integrating with SIEM systems, indicates a trend towards more comprehensive and unified security architectures. This consolidation could potentially reshape the competitive landscape, favoring vendors who can offer integrated, end-to-end solutions.

The emphasis on AI and ML in cybersecurity solutions is particularly noteworthy. These technologies are becoming critical for handling the volume and sophistication of modern cyber threats, potentially creating a significant competitive advantage for companies that can effectively leverage them.

The report's mention of open standards and pre-built integrations highlights the growing importance of interoperability in cybersecurity solutions. This trend could benefit smaller, specialized vendors who can integrate seamlessly with existing security ecosystems, while also putting pressure on larger vendors to open up their platforms.

For investors, these trends suggest a dynamic market with opportunities in both established leaders and innovative newcomers. However, the recent CrowdStrike incident underscores the operational risks associated with cybersecurity providers, highlighting the need for robust risk assessment in investment decisions.

Financial Analyst

The cybersecurity solutions market is showing strong growth potential, driven by increasing enterprise adoption of advanced technologies like XDR and SSE. This trend is likely to benefit companies listed as Leaders in the ISG report, such as Palo Alto Networks, Cisco and Microsoft, potentially boosting their revenue streams and market share.

The convergence of security technologies and the move towards unified security architectures could lead to increased M&A activity in the sector. Larger players may look to acquire specialized technologies to round out their offerings, which could create opportunities for investors in smaller, innovative cybersecurity firms.

The growing importance of AI and ML in cybersecurity solutions suggests that companies investing heavily in these technologies may see improved competitive positioning and potentially higher profit margins due to the scalability of AI-driven solutions.

However, the cybersecurity market also carries significant risks. The recent CrowdStrike incident highlights the potential for reputational damage and financial losses due to technical failures. This underscores the importance of robust risk management practices for companies in this sector.

For investors, the cybersecurity sector offers attractive growth prospects, but requires careful due diligence. Key factors to consider include a company's technological capabilities, particularly in AI and ML, their ability to offer integrated solutions and their risk management practices. The trend towards open standards and interoperability may also favor companies with more flexible, integration-friendly approaches.

Companies worldwide adopt multi-layer threat detection, comprehensive policies to prevent and shut down intrusions, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- Facing ever more sophisticated cybersecurity threats, a growing number of enterprises are adopting advanced security systems that go beyond traditional perimeter defenses, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ global Cybersecurity — Solutions and Services global report finds demand is growing for cutting-edge security capabilities, especially extended detection and response (XDR) and security service edge (SSE). Enterprises are adopting solutions like these as they deepen their reliance on cloud-based applications, remote work and distributed, interconnected IT systems.

“Companies modernizing their IT environments often face both new security threats and bigger security management challenges,” said Doug Saylors, partner and co-leader of ISG Cybersecurity. “They are turning to solution providers for more comprehensive security frameworks.”

XDR and SSE provide more scalable, higher performance security across expanding and evolving IT landscapes, the report says. XDR platforms collect and correlate data from multiple security layers, including endpoints, servers and cloud workloads, for a holistic view of an organization’s security posture. Using analytics and automation, they can detect, investigate and respond to threats anywhere in the enterprise. SSE solutions centralize security policies and enforce them across all endpoints and applications, helping companies meet governance and compliance requirements.

Companies are turning to XDR as an array of new features expand its capabilities, ISG says. Integrated AI and ML algorithms allow XDR systems to better predict attacks and automate responses, reducing work for security teams. The platforms are converging with other solutions, such as security information and event management (SIEM), to form a unified security architecture. Integration of external threat intelligence feeds gives enterprises more context for decision-making.

Companies struggling to secure myriad cloud applications are adopting SSE for visibility and control, the report says. As traditional perimeter-based security fails to protect remote cloud users, SSE ensures secure access to applications from any location or device and uses AI to personalize security policies based on user behavior. It can even reveal unapproved cloud applications that business units or departments have deployed and secure access to them.

For a growing number of organizations, SSE solutions help to establish zero-trust security based on continuous verification, ISG says. For others, they are the foundation of secure access service edge (SASE) architectures, which integrate network and cloud security into a single cloud-delivered service.

“Enterprises are becoming more pre-emptive about security, because cyberattacks can quickly damage corporate reputations,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “New, comprehensive security solutions make this possible.”

The report also explores other global trends around cybersecurity solutions, including the rising importance of identity and access management (IAM) and the growing demand for vendors to offer open standards and pre-built integrations with existing security tools.

For more insights into enterprise challenges relevant to cybersecurity solutions, including the shortcomings of VPNs and of reactive threat detection systems, plus ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ global Cybersecurity — Solutions and Services global report evaluates the capabilities of 35 providers across two quadrants: Extended Detection and Response and Security Service Edge.

The report names Palo Alto Networks as a Leader in both quadrants. It names Broadcom, Cato Networks, Cisco, CrowdStrike, Forcepoint, Fortinet, IBM, Microsoft, Netskope, SentinelOne, Trend Micro, Versa Networks and Zscaler as Leaders in one quadrant each.

Aase, the head of ISG Provider Lens Research, noted CrowdStrike was named a Leader in one of the report’s quadrants before the recent incident involving a failed CrowdStrike software update impacted global computer systems. He said ISG stands by its research and rating of CrowdStrike.

“CrowdStrike is one of the largest providers of cybersecurity solutions in the world. It’s important to note the recent computer outages were not caused by a cyberattack, but a failed software update that impacted Microsoft 365 systems,” said Aase. “These outages, while highly disruptive, underscore the complexity and interconnectedness of modern ecosystems and the need for ongoing cyber vigilance.”

In addition to the Leaders mentioned above, Skyhigh Security and Trellix are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Zensar Technologies is named the global ISG CX Star Performer for 2024 among cybersecurity providers. Zensar Technologies earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

A customized version of the report is available from IBM.

The 2024 ISG Provider Lens™ global Cybersecurity — Solutions and Services report is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240730252511/en/

Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What are the key cybersecurity solutions highlighted in the 2024 ISG Provider Lens report?

The report highlights extended detection and response (XDR) and security service edge (SSE) as key cybersecurity solutions being adopted by enterprises to counter advanced threats.

How does XDR improve cybersecurity according to the ISG report?

XDR platforms collect and correlate data from multiple security layers, providing a holistic view of an organization's security posture. They use AI and ML algorithms to predict attacks and automate responses, reducing work for security teams.

What benefits does SSE offer for cloud security, as per the ISG report?

SSE ensures secure access to applications from any location or device, uses AI to personalize security policies based on user behavior, and helps establish zero-trust security. It also aids in revealing and securing unapproved cloud applications.

Which companies were named Leaders in the ISG Provider Lens Cybersecurity report?

Palo Alto Networks was named a Leader in both quadrants. Other Leaders in one quadrant each include Broadcom, Cisco, CrowdStrike, Fortinet, IBM, Microsoft, and Zscaler, among others.

How did Information Services Group (III) address the recent CrowdStrike incident in their report?

ISG acknowledged the incident but stood by their research and rating of CrowdStrike. They noted that the outage was due to a failed software update, not a cyberattack, and emphasized the complexity of modern ecosystems and the need for ongoing cyber vigilance.