The cybersecurity industry will be fiercely competitive in 2017


December 8, 2016

2017 is shaping up to be a fiercely competitive year for the cybersecurity industry. Here is how I see the market playing out in the next 12 months.

Hundreds of cybersecurity startups have raised billions of dollars in venture funding over the past three years. The companies who have successfully built their technology and fielded competent sales forces will be the disruptors. The tech giants, large pure plays, big consulting firms, and niche regional players will all be facing a large pool of new market entrants next year. Many of the startups are influenced and controlled by anxious investors who are looking for a return on their money.

Tech giants Cisco and IBM have grown their security businesses to the tune of around $2 billion each. Both gained another 10 percent last quarter. Expect to see more growth from them, and other large participants including Unisys who view cyber as growth vehicles for their businesses. Big tech will go big cyber in 2017.