Investments in Security Solutions in Southeast Europe Grow Faster than the Global Average

Security threats, as shown by a recent study by the global analytics firm IDC, are particularly pronounced in Southeast Europe where less effective security solutions are present (50 percent of companies have only basic ones), and awareness of growing dangers and risks is lower. On the other hand, local hackers, especially in Romania and Bulgaria, are among the most sophisticated in the world as many global cyber attacks originate from this region.

Mobile solutions, cloud computing, social networks, and big data, or what IDC calls the third computing platform, along with the rapid development of the Internet of Things in recent years, are dramatically changing the IT environment. By 2020, the number of devices connected to the internet in Southeast Europe is expected to exceed the number of its inhabitants by more than four times. Alongside this development comes the growth of security threats and challenges. Therefore, the formulation of strategies and decisions regarding IT security should be based on a better understanding of global threats and current trends.

The IDC Executive Brief, a study sponsored by IBM, analyzes the main security threats faced by companies and organizations in Southeast Europe and those they may encounter in the future. The study was based on interviews with organizations, security solution providers, and industry leaders in Hungary, Romania, Bulgaria, Croatia, Slovenia, and Serbia. Key technological and business factors affecting security that organizations should consider include migration to the so-called third computing platform, millennials connecting to multiple devices, being more active on social networks, and having different attitudes towards sharing private information, the prevalence of software whose vulnerabilities are at the root of increased cyber attacks, and the proliferation of malware. All these trends are present in Southeast Europe – the third platform is no longer just a “hype”, spending on mobile devices reached nearly 27 percent of total IT spending in 2014, spending on public cloud services increased by 50 percent last year, etc. As a result, cyber attacks in this region increased last year both in frequency and complexity.

To cope with new threats and mitigate risks, organizations in Southeast Europe are increasing investments in IT security. According to IDC, total spending on security solutions is expected to grow by 47 percent by 2019, which is higher than the global average of 31 percent.

– What we see in the market is that various organizations, from governments and financial institutions to small businesses and individuals, are strongly investing in the security of their networks. We have reached a turning point and need a different approach to IT security. Given today’s spectrum of security threats, the question for almost every organization is not whether an attack will happen but when it will happen – says Michael Paier, General Manager of IBM for Southeast Europe, adding that companies are sometimes not even aware that they have been attacked and it may take some time before they realize it.

According to data from IDC’s SEE Security Survey 2015, 45 percent of organizations in Southeast Europe need more than one day to deal with the consequences of a security breach, and 25 percent of them need more than a month to fully recover from the worst security violations.

– Today’s defense against cyber attacks should start long before an attack can occur. A proactive defense strategy should cover the entire organization: IT platforms, including infrastructure, applications, cloud environments, mobile devices, employees and their regular training, and the physical assets of the organization. The development and implementation of a comprehensive long-term cybersecurity strategy should be at the top of every C-level manager’s agenda – emphasizes Paier.

According to data from the IDC Executive Brief, protection against cyber attacks is a top priority for 58 percent of surveyed organizations. Following that are data loss prevention, user experience, operational efficiency, cost reduction, etc. Cybercrime is clearly increasing, threats are more diverse than ever, and attacks are becoming more personal and sophisticated. The explosion of data has further complicated the security landscape. As much as 90 percent of the world’s data has been created in recent years, and so far less than one percent of that data has been analyzed.

– Organizations in Southeast Europe are using less effective and outdated IT infrastructure, making them more vulnerable to cyber attacks. At the same time, spending on mobile devices is rising, and with the proliferation of mobile applications that may not have built-in security, the BYOD (bring your own device) trend often can mean BYOV (bring your own virus) – says Paier.

Additionally, the regulatory framework in Southeast Europe is still developing. The introduction of various public e-services in Southeast European countries (such as the e-citizen service in Croatia) is also expected to further stimulate cybercrime given the large amount of data that will be present there, considering the weak institutional capacity to deal with security threats.

In recent years, IBM has confirmed its position as a provider of security solutions through a series of acquisitions that have expanded their security portfolio.

– We now offer comprehensive, integrated, multi-layered solutions consolidated under one business unit. Our security portfolio includes hardware, software, and services, designed to help organizations detect threats and respond to them, prioritize, and prevent security breaches – says Paier.

Among the companies in Southeast Europe using IBM security solutions are BRD-Groupe Societe Generale in Romania and Societe Generale Banka Srbija, which focus on preventing fraud using IBM Security Trusteer to protect web applications, computers, and mobile devices against advanced malware and phishing attacks, as well as United Bulgarian Bank and Zagrebačka banka and Splitska banka in Croatia.