6 Cybersecurity Industry Predictions For 2018

2018 cybersecurity predictions

This is the time of the year when all the cybersecurity company and media outlets race to summarize the last year and predict what lies ahead in 2018. But most of these predictions concentrate on cyber trends (both cybercrime and cyber- espionage) and fail to touch upon the industry we are all part of. So we at CyberDB have made a little extra effort and try to predict the trends that will dominate the cybersecurity industry in 2018.

1. Consolidation

A trend that has played a major role in 2017, with several prominent M&A deals- such as Palo Alto Networks buying lightcyber, Microsoft buying Hexadite , and Symantec buying Fireglass and Skycure. We predict this trends will intensify in 2018- with more companies reaching product maturity and failing to raise further capital (and with IPO looking like a distant option for many of the small to mid-sized companies). We said the same regarding 2016 and 2017, and we really feel the industry and customers will benefit from a smaller amount of “feature” solutions in comparison to platforms and integrated offerings.

2. VC money to finance fewer deals, but larger rounds

We predict that fewer cybersecurity startups will emerge this year, and this will be in part due to VCs surfeit with cyber investments. The ones that will manage to raise cash will enjoy larger funding rounds. This will have both positive and negative impact- it is supposed to weed out the companies with less market-appeal (which is good for the customers) but on the other hand it will make it harder for novel (yet to be proven) ideas to raise sufficient funds to pass their initial product development stages. This is a subset of a global trend of subsiding investments in seed stages (The seed and early-stage investing market has cooled substantially in the past few years). The lucky startups to cross this phase will enjoy larger financing rounds (all that money still needs to be invested).

3. Defense player will make more moves

French Defense giant Thales just announced it will be acquiring Gemalto  and we foresee many defense companies following their footsteps. The Defense industry has been too slow to develop cyber solutions, have had only minor success in penetrating the civilian markets and so the logical steps is to buy mature companies and boost their offerings. This has been going on for some time now (for instance- Cybereason partnership with Lockheed- Martin) and will likely to grow in 2017 due to decline in global defense budgets and the need to develop alternative sources of revenue.

4. Innovation to come from outside of US and Israel

So far, the US and Israel lead the cybersecurity industry in terms of the total number of cybersecurity companies and innovation. However, we are seeing more European cyber startups stepping up, especially in the UK.  and also hearing of innovation coming from India a nation with strong technological prowess and deep ties to Silicon Valley.

5. GDPR

Speaking of Europe, GDPR is all the rage when it comes to cybersecurity regulation. We think it’s a little over-hyped and probably won’t have such a huge impact on cybersecurity- at least not until the first company will be penalized due to negligent handling of customers’ data. Still- as it comes to effect in may 2018 (here’s a link with a countdown clock) it is one of the main trends affecting this year.

6. IoT

IoT security exploded onto the scene exactly one year ago- in the final months of 2016. Since then it has become clear that this is a growing concern with very few cybersecurity solutions that are able to address it properly. Being very different to “ordinary” IT or even cloud deployments, it is not likely that mainstream security companies will be the ones developing the solutions to secure it- these will more likely come from smaller startups with roots in the IoT world.

We wish all our friends and partners in the Cybersecurity industry a happy new year and an even better year in 2018!

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