SMBs Spend Big To Be Secure

by CXOtoday Staff    Apr 20, 2006

As Indian SMBs continue to grow, so does their wallet size. A clear testament to this fact is their increasing adoption of IT and their continuing heavy investments in IT security, driven by their adoption of advanced enterprise applications and storage solutions.

According to New York Based AMI-Partners latest report, small and medium businesses in India are going to spend close to $133.6 million purely on purchasing IT security solutions this year. These predictions, if true, will mark an impressive 53% increase of spends as compared to last year.

Increased PC penetration, Internet access, network connectivity and increased storage capacity in recent years also warrants a proportional increased attention to IT security because of the obvious risks of running an IT enabled business.

According to Neha Jalan, Kolkata-based analyst at AMI-Partners, “Many SMBs have seen the loss in productivity and have experienced the damage that online viruses can inflict. With the explosive growth of the Internet, the advent of broadband ‘always-on’ technology, and the increased prevalence of viruses and malicious worms, data security has assumed greater significance.”

Having realized the importance of data security, many SMBs are either deploying or planning to deploy sophisticated anti-virus software, anti-spam software on their PCs to protect critical business data. Also a majority of LAN small and medium businesses have deployed a software-based firewall on their PCs or LAN servers.

Until recently Indian SMBs have primarily deploying stand-alone security solutions, however with vendors now offering integrated security solutions that address a variety of security threats, SMBs are gradually shifting their focus from stand-alones to unified security solutions.

Security vendors like Symantec, McAfee are already hawking tightly knit security solutions that are designed to tackle a range of security issues.

“India SMBs prefer to manage their security deployment internally, and as most are still investing in basic security products, this strategy has been effective. Nevertheless, as businesses progress towards deploying firewalls, VPNs and IDS, managed security services offer the twin benefits of convenience and cost-effectiveness,” opines Jalan.