NASDAQ OMX

Improving Security Solutions Could Grow the Internet of Things Cybersecurity Market by $9-$11 Billion

Dela

New Bain & Company research identifies four steps IoT device vendors can take to address  security concerns that are holding back further growth in this market

 

NEW YORK, May 30, 2018 (GLOBE NEWSWIRE) -- Security concerns are a significant roadblock to investment in the Internet of Things (IoT).  According to a new Bain & Company report, Cybersecurity is the Key to Unlocking Demand in IoT 45 percent of IoT buyers say concerns about security remain a significant barrier and are hindering the adoption of IoT devices. 

If vendors could provide better security, enterprise customers surveyed say they would be willing to buy, on average, at least 70 percent more IoT devices.  In addition, 93 percent of executives said they would pay more for devices with better security - about 22 percent more on average.  Taken together, Bain & Company estimates that improving security solutions for these devices could grow the IoT cybersecurity market by $9-$11 billion.  For IoT device vendors - companies that make IoT devices as well as those that provide related solutions - the message is clear: improve security to gain a competitive edge and grow your market.

These are among Bain & Company's findings over the last three years and new, recently completed research on IoT security. 

"We expect growth in the markets that comprise the IoT to continue full steam ahead, but issues around security concerns could derail that progress," said Ann Bosche, a partner in Bain & Company's Telcom, Media and Technology Practice.  "Enterprise customers are moving cautiously until they can gain some reasonable assurance of the security of their data and operations, which increasingly rely on devices, sensors and the Internet of Things."

The Bain & Company survey found most executives (60 percent) said they were very concerned about the risks IoT devices pose to their companies - not surprising, given the damage that an IoT security breach can cause to operations, revenues and safety.

In determining solutions to guard against attacks, IoT device vendors can segment their target customers by levels of cybersecurity capability maturity.  The research finds that customers at the least-advanced end of the spectrum are more likely to seek out simplified and integrated security solutions, whereas those with more advanced capabilities prefer to invest in best-of-breed or customized point solutions.

Further, across segments, nearly all executives - 90 percent - said that IoT devices pose a moderate or significant risk to their organizations, and executives in companies with greater cybersecurity sophistication see more risk than those in less sophisticated companies.

The research also found that executives in some industries see themselves at greater risk than others. Those in durable goods, building and construction, energy and utilities, financial services, and technology were most likely to express a significant level of concern.

In response to these risks, executives who manage security said that, as customers, they want solutions that are highly effective, easy to integrate, and flexible to deploy.

Companies take a range of approaches to meet their security needs, based on their capabilities and the availability of marketplace solutions from vendors.  Only about a third of IoT cybersecurity solutions used today are from IoT device vendors, indicating that vendors are either not offering holistic, high quality, solutions that meet consumer needs or they are not promoting them well enough. Bain & Company found that companies with the most advanced cybersecurity capabilities rely more on internally developed security solutions, not only because they may have more complex needs but because they are more likely to have the talent and capabilities to develop their own solutions. Companies with ad hoc security capabilities have the most gaps across all IoT layers tested.

The research also looked at how companies deploy solutions by layer of security and found ample opportunity for IoT device vendors at every layer of the stack.   The access interface layer has the greatest level of protection, whether developed internally or provided by a manufacturer or third party. Other layers of the stack were protected by more internal solutions - or, in some cases, none at all. Customers' preference for internal solutions may be partially explained by considering the specific conditions of each layer. For example, data security solutions typically require more computing and power resources than are currently available on basic IoT devices. 

"Most enterprises want a cohesive set of tools and a unified overview of the security posture of their devices, but few IoT device makers understand their customers' operations well enough to provide that kind of solution," said Syed Ali, a cybersecurity expert in Bain & Company's IT Practice.  "Lacking well-designed IoT cybersecurity products and services, customers are devising their own solutions, foregoing them altogether, or failing to implement IOT solutions until vendors can fill the gap."

All IoT device vendors will need to pay more attention to security in the design, development and deployment of devices. Four steps can help executives frame their task:

  1. Understand how customers are using devices. Staying current by refreshing their understanding of customer use cases every 12 to 18 months will allow them to stay on top of evolving security requirements, and help identify unmet needs. Ascertaining the average cybersecurity maturity level of their customers will help manufacturers invest in the right out-of-the-box and add-on solutions.
     
  2. Provide cybersecurity capabilities on the device and, where possible, partner with trusted cybersecurity vendors to provide additional solutions. Engineering teams should embed secure development practices in the software and hardware components of the device, and provide inherent solutions for the access interface, apps, data and device layers. Taking these measures can mitigate common vulnerabilities in IoT devices today such as default or embedded passwords, lack of data security for credentials and network communications, and weak safeguards for ensuring system integrity.
     
  3. Meet quality assurance thresholds and be able to certify that their IoT devices are free from known vulnerabilities. This would mitigate a major pain point for customers who sometimes install new devices without realizing they contain vulnerabilities. Deploying a more methodical process to identify and remove vulnerabilities across layers or engaging third-party vulnerability scanning and or penetration test firms can help manufacturers meet this bar.
     
  4. Fulfill their obligations during the warranty period by continuously testing for new vulnerabilities, providing software and firmware updates, as well as feature and functionality upgrades for out-of-box and aftermarket solutions. Delivering updates to firmware, operating systems and applications in response to newly discovered security vulnerabilities should remain a top priority through the warranty period.

"IoT device vendors and ecosystem players that move quickly to improve the security around IoT devices are likely to reap rewards not only from their ability to earn a premium, but also from an expanded market," said Frank Ford, a partner in Bain & Company's IT Practice.  "These four steps are a start, though by no means, the whole of what it will take to begin to address the security concerns that are holding back growth of the IoT."

Editor's Note: To arrange an interview, contact Dan Pinkney at dan.pinkney@bain.com or +1 646 562 8102

About Bain & Company 
Bain & Company is the management consulting firm that the world's business leaders come to when they want results. Bain advises clients on strategy, operations, information technology, organization, private equity, digital transformation and strategy, and mergers and acquisition, developing practical insights that clients act on and transferring skills that make change stick.  The firm aligns its incentives with clients by linking its fees to their results.  Bain clients have outperformed the stock market 4 to 1. Founded in 1973, Bain has 55 offices in 36 countries, and its deep expertise and client roster cross every industry and economic sector. For more information visit: www.bain.com.  Follow us on Twitter @BainAlerts.

Media Contact:

Dan Pinkney
Bain & Company
Tel: +1 646 562 8102
dan.pinkney@bain.com




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Bain & Company via Globenewswire

Om

NASDAQ OMX
NASDAQ OMX



Följ NASDAQ OMX

Abonnera på våra pressmeddelanden.

Senaste pressmeddelandena från NASDAQ OMX

CORRECTING and REPLACING -- PRESS ALERT & INVITATION: Arbitrade to Hold a Press Conference on June 28th From Bermuda - Its New Global Headquarters23.6.2018 14:00Pressmeddelande

NEW YORK, June 23, 2018 (GLOBE NEWSWIRE) -- In a press release issued under the same headline earlier today by Arbitrade, please note that the correct date of the event is Thursday, June 28, 2018 at 8:00 a.m. EDT. The corrected release follows: This is an invitation to all media following Arbitrade and/or covering the cryptocurrency markets. You are invited to join Arbitrade's Chairman, Len Schutzman, and management who will discuss their progress toward establishing Arbitrade as a world-class cryptocurrency exchange and coin company. They will also discuss their move and incorporation into Bermuda, one of the world's best regulated jurisdictions and a platform from which Arbitrade will reach out to several international markets. It will be a lively discussion that will also include details of the many economic and social advantages and new jobs that companies, like Arbitrade, will bring to countries in which they settle and do business around the world. Details of how to access the pr

15th Consecutive Nasdaq Closing Cross Sets Record for Number of Shares Traded During 2018 Russell US Indexes Reconstitution22.6.2018 23:19Pressmeddelande

NEW YORK, June 22, 2018 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq:NDAQ) today announced the Nasdaq Closing Cross had a record day as it was used for the 15th consecutive year to rebalance Nasdaq-listed securities in the entire family of Russell U.S. Indexes, part of leading global index provider FTSE Russell, during their annual reconstitution. A record 1.188 billion shares representing $39.26 billion were executed in the Closing Cross in 0.935 seconds across some 2,591 Nasdaq-listed stocks. This compares to 2017, when Nasdaq executed 972 million shares representing $28.9 billion executed in 0.861 seconds across 2,499 Nasdaq-listed stocks. "Today, we saw a record-breaking performance for the Nasdaq Closing Cross, which benefits issuers and investors alike with transparent and efficient price discovery," said Tom Wittman, Head of Global Equities and Executive Vice President of Global Trading and Market Services at Nasdaq. "The rebalance is an important event to ensure that the Russell U.S. ind

PRESS ALERT & INVITATION: Arbitrade to Hold a Press Conference on June 28th From Bermuda - Its New Global Headquarters22.6.2018 22:29Pressmeddelande

NEW YORK, June 22, 2018 (GLOBE NEWSWIRE) -- This is an invitation to all media following Arbitrade and/or covering the cryptocurrency markets. You are invited to join Arbitrade's Chairman, Len Schutzman, and management who will discuss their progress toward establishing Arbitrade as a world-class cryptocurrency exchange and coin company. They will also discuss their move and incorporation into Bermuda, one of the world's best regulated jurisdictions and a platform from which Arbitrade will reach out to several international markets. It will be a lively discussion that will also include details of the many economic and social advantages and new jobs that companies, like Arbitrade, will bring to countries in which they settle and do business around the world. Details of how to access the press briefing webcast are as follows: Please register now for the upcoming Arbitrade Conference Call: Date: Wednesday, June 27, 2018 Time: 8:00 a.m. EST We recommend that you connect to the meeting at l

Northland Power's Hai Long Offshore Wind Project Awarded Additional 744 Megawatts in Taiwan Auction22.6.2018 14:15Pressmeddelande

TORONTO, June 22, 2018 (GLOBE NEWSWIRE) -- Northland Power Inc. ("Northland") (TSX:NPI) today announced that the Taiwan Bureau of Energy ("BOE") has awarded 232 megawatts ("MW") to the Hai Long 2 offshore wind farm ("Hai Long 2") and 512 MW to the Hai Long 3 offshore wind farm ("Hai Long 3") under Taiwan's offshore wind auction program. These awards are separate from and in addition to the 300 MW in 2024 that Hai Long 2 was allocated by the Taiwan BOE on April 30, 2018 under Taiwan's Feed-in-Tariff ("FIT") program. Northland and its partner Yushan Energy Co. Ltd. ("Yushan Energy") own 60% and 40%, respectively, of Hai Long 2 and Hai Long 3. This is another significant step for Northland in Taiwan, with a second and third project progressing to connect to Taiwan's grid in 2025, subject to securing 20-year power purchase agreements. Taken together with the FIT award, the Hai Long 2 and Hai Long 3 offshore wind farms now total 1,044 MW of offshore wind capacity in Taiwan. Northland is bui

Williams Scotsman to Acquire ModSpace22.6.2018 13:09Pressmeddelande

Creates an industry-leading specialty rental services provider with over $1 billion of combined revenue and over 160,000 rental units across North America Leverages, and further strengthens, Williams Scotsman's scalable operating platform to capture an estimated $60 million of cost synergies Combines the best of both companies' go-to-market strategies, benefiting our customers and accelerating the expansion of Williams Scotsman's turnkey "Ready To Work" solutions across a broader asset base and enhanced branch network Total enterprise value of approximately $1.1 billion represents 6.6x ModSpace's Adjusted EBITDA for the twelve month period ended March 31, 2018, inclusive of forecast cost synergies and the expected value of acquired tax attributes1 ,2 BALTIMORE, June 22, 2018 (GLOBE NEWSWIRE) -- WillScot Corporation (NASDAQ:WSC) ("Williams Scotsman") the leading specialty rental services provider of innovative modular space and portable storage solutions across North America, today anno

GMAC Launches 'Study in China' Initiative in Partnership with 11 Leading Business Schools in China22.6.2018 06:01Pressmeddelande

BEIJING and HONG KONG, June 22, 2018 (GLOBE NEWSWIRE) -- On June 22, the Graduate Management Admission Council (GMAC) joins hands with 11 leading business schools in China to launch the "Study in China" initiative. This partnership marks the opening of an interactive platform for international students across 20 Belt and Road (B&R) regions to explore opportunities in China and to pursue higher education in business-related fields. The "Study in China" initiative aims to meet rapidly growing international student demand and to champion China as a world-class study destination and emerging global hub for business education. The "Study in China" online portal (www.studyinchinamba.com) officially launched today allows students to discover more about studying and living in China. The newly designed English-language website connects prospective students with partner business schools and offers access to an abundance of information to help find the perfect fit for their China education experi

I vårt pressrum kan du läsa de senaste pressmeddelandena, få tillgång till pressmaterial och hitta kontaktinformation.

Besök vårt pressrum