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Businesses Spend 20% of IT Budgets on Security

Stony Stevenson writes "Security accounted for 20 percent of technology spending last year and it's expected to rise, according to a report released Tuesday. The Computing Technology Industry Association (CompTIA) surveyed 1,070 organisations and found that on average, they spent one-fifth of their technology budgets on security-related spending in 2006. That's up from the 15 percent of IT budgets spent on security in 2005, and the 12 percent spent in 2004."

31 of 141 comments (clear)

  1. that's how we roll around here by User+956 · · Score: 5, Funny

    Security accounted for 20 percent of technology spending last year and it's expected to rise, according to a report released Tuesday ... That's up from the 15 percent of IT budgets spent on security in 2005, and the 12 percent spent in 2004.

    That makes sense. I mean, nerf weapons count as a security expense, right?

    --
    The theory of relativity doesn't work right in Arkansas.
    1. Re:that's how we roll around here by Architect_sasyr · · Score: 4, Funny

      Definitely do. It's the only way I can keep the damn bean counters from getting into mission control!

      --
      Me failed English...
      FreeBSD over Linux. If my comments seem odd, this may explain...
  2. To bad most of it is Stupid Security. by jellomizer · · Score: 3, Insightful

    I have waisted more time making workarounds these "security fixes" then ever just because they
    want to think they are safe but they never really consider the underlining problems with security.
    90% of the Market is using the SAME FREAKING OS! So they work on blocking legit Web Mail so
    Windows Viruses cant get in. Scanning all attachments to make sure there is no VBScript in Office
    For Windows Documents. Trying to block sites that could possible be considered to have Windows Spyware.

    Stop using freaking Windows all the time. Linux/Mac Workstations with VMWare to load Windows for those
    Windows only apps, Stop wasting time with making Windows Console application and focus on Web Based Apps
    Even if it is with .NET on a Windows Server, which you can run the Apps on any other browser, and OS.

    Of course gust going to a different OS isn't the only solution you need good firewalls and such. But...
    The core of the problem is Windows. Get Rid of Windows or reduce it to more bit parts then your companies
    security is so much better.

    Yes PHB MBA wont get it, they are afraid of doing anything differently then the rest. IT people will resist
    too because they don't know Linux or Macs as well as windows and are not willing to learn. But if you need
    to focus on security you need be different then the rest.

    You need to be flexible so If Macs or Linux becomes insecure (One to many features can cause that problem) then
    your custom apps need to be multi-platform or at least cross compilable to move from one system to an other.
    That is the correct direction for security. Not this Block you from getting you work done stuff.

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    1. Re:To bad most of it is Stupid Security. by CaptainPatent · · Score: 4, Insightful

      Actually, a linux box in the hands of a clueless user can be just as dangerous if not more so than a windows box in the same hands.

      The real threat is ignorance here. That includes buying unnecessary security equipment, operating and running the system itself, and improperly using software firewall and routing.

      --
      Well, back to rejecting software patent applications.
    2. Re:To bad most of it is Stupid Security. by Lobster+Quadrille · · Score: 4, Insightful

      As the head of my company's security department, the problem does not lie with Windows.

      I am no fan of Microsoft- after much fighting with my boss over it, I'm the only person in a mid-sized web design company running Linux on his desktop, but the core problem has nothing to do with Windows- at least not solely.

      The problem comes down to several things:

      Incompetence of users: This is the only place the the end OS really makes a difference, but all in all, I'd rather see the morons using Windows than Linux, just because they are already familiar with it. It's pretty tough to convince the uppers to retrain an entire company. That time and effort could in fact be better spent working on virus protection, network monitoring, etc., which any responsible security team still needs to do.

      Pre-existing infrastructure: Companies start small, usually with the IT department consisting of a guy who sort of knows how to build computers. As the company grows, the infrastructure is forced to expand with it. Generally, this invlolves hacks and patching things together until it reaches a breaking point and a real network engineer is brought in. The problem there is that he still needs to keep everything up and running. You can't exactly take down a network, lead/customer management database, external web applications, etc, rebuild them all from scratch, then move everybody over. If the company can't maintain a baseline of functionality, than a security/network overhaul won't do anybody any good.

      Cluelessness of management: Spending money on security rarely affect's the company's bottom end directly. The only way to get them to take security seriously is to show them what it will cost them to not do so. This isn't as hard as it sounds though- if you can convince upper management to participate in creating company security policy, you can start to show them that A) security involves not just confidentiality, but also availability and integrity of assets- two aspects that are far more critical, particularly in upper management's eyes. B) Protection of those assets is the responsibility of management. Hiring a security guy will do no good unless he has support from the top. When something goes wrong, they may have a patsy, but they suddenly won't have that database of customer information.

      It's nice to hear that companies are spending 20% of IT budgets on security, though I don't believe it. Regardless, there is definitely a positive trend. The companies are starting to realize that security isn't something you can pick up for the price of a firewall and a pentest- it's a cyclical process involving constant auditing, defining and refining processes in all aspects of the company (which is why management support is so critical), and most importantly, fixing problems WITHOUT interrupting the normal flow of business.

      --
      "The cup is in turn designed for holding hot or cold liquids, and has an open rim and closed base." --US Patent #5425497
  3. I call bull by flyingfsck · · Score: 2, Funny

    Unless they count a UPS, RAID and tape drives as security, there is no way that security can eat up that much of the budget, except maybe if the surveyed all use Windoze...

    --
    Excuse me, but please get off my Pennisetum Clandestinum, eh!
    1. Re:I call bull by teh+moges · · Score: 5, Informative

      I'm not sure about you, but we (Windows mostly) use email filtering, web content filtering, anti virus and firewalls. Then you have the personal costs of running, maintaining and administering these products (such as releasing false positive emails, updating anti virus). Then I suppose you can count the fact we have a server for WSUS as an ongoing cost. We have very little in the way of wireless networks, but if we did, they would be another cost (more administration then anything).

      When I think about it, it probably isn't 20% of the total expenses, but it would have to be close.

    2. Re:I call bull by spykemail · · Score: 2, Funny

      When did IIS become #1? And where is the nearest suicide booth?

    3. Re:I call bull by jonadab · · Score: 3, Informative

      > Unless they count a UPS, RAID and tape drives as security, there is no way that security can eat up
      > that much of the budget, except maybe if the surveyed all use Windoze...

      I'm sure a significant percentage of them use Windows, but what you're probably missing is that a lot of the security stuff that's typically sold to corporations (including, even, firewall solutions) is sold on a subscription basis, so that you have to pay every n (typically, twelve) months just to keep the same level of protection that you already had.

      Most other computer stuff is licensed for an indefinite period of time, so if a given system has a lifespan of five years, you only pay for the hardware, OS, office suite, and so forth every five years, but you pay for the security stuff five times as often. So it could cost 1/20th as much as the rest and still take up 1/5th of the budget.

      For instance, you might buy a workstation for $500, which comes with Windows XP included and a keyboard and mouse. To go along with that you might also buy a $250 LCD and a $650 license for MS Office, and you might use the thing for five years. During that time you might pay for Norton Internet Security every year, at about $70 a pop. Those aren't atypical figures these days, but if you multiply it out, security is one-fifth of the total budget for that workstation over five years.

      It does get a little weirder when line-of-business software is included (you know, stuff in the "let us know you're interested and we'll assign a sales team" price range), because that stuff usually has annually-renewed maintenance contracts on everything, including the hardware. OTOH, security solutions at that kind of level tend to be more expensive as well, e.g., the vendor might roll one of Symantec's enterprise-level security products right into your plan and consider it a required part of the solution.

      --
      Cut that out, or I will ship you to Norilsk in a box.
    4. Re:I call bull by arivanov · · Score: 2, Informative

      It can.

      AV , Client firewall, Integrity checkers and patch deployment, VPN, Firewall, Compliance, etc in a Windows shop ramp up to somewhere around there. Actually, quite often they are even more.

      --
      Baker's Law: Misery no longer loves company. Nowadays it insists on it
      http://www.sigsegv.cx/
  4. pebkac security patch by wizardforce · · Score: 2, Insightful

    I wonder how much of that spending went to training their employees that "password", "letmein" and lastly "123" are *NOT* the best passwords.

    --
    Sigs are too short to say anything truly profound so read the above post instead.
    1. Re:pebkac security patch by UncleTogie · · Score: 5, Funny

      I wonder how much of that spending went to training their employees that "password", "letmein" and lastly "123" are *NOT* the best passwords.

      Just happened today: The uber-friendly shopkeeper next door asked me to help him void a transaction. When the password prompt came up, he looked at me and simply said, "1-2-3-4-5."

      I couldn't resist. I looked back at him and said, "That's funny. I've got the same combination on my luggage..."

      --
      Don't tell me to get a life. I'm a gamer; I have LOTS of lives!
    2. Re:pebkac security patch by jonadab · · Score: 3, Insightful

      > I wonder how much of that spending went to training their employees

      On average, not nearly enough. Employee training practically always gets shortchanged, and I'm not just talking about computer security, or even just about computer technology generally. It's true across the board in most industries.

      Worse, in a lot of industries, the money that _is_ budgetted for employee training gets mostly wasted on worthless nonsense, not spent on the training the employees could actually *use*.

      --
      Cut that out, or I will ship you to Norilsk in a box.
  5. And then what part goes to anti-spam? by damn_registrars · · Score: 3, Interesting

    Since we now have a way to track security expenditures, we should have some way to track money spent on anti-spam measures. Considering how well the anti-spam hardware and software sells, I'll venture its a nontrivial expense, as well.

    Even if you're just running some spiffy implementation of spam assasin, it still gets your time at some frequency to update the rules, amongst other things.

    --
    Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
  6. "Security" analysts by Da_Biz · · Score: 4, Insightful

    At some of my consulting client sites, I've been underwhelmed by the quality of their "security analyst" staff. I've found that staff seemed to be more interested in putting their name on boilerplate "best practices" to pass off to others, rather than taking a hands-on, collaborative approach in working with sysadmins to really verify that their systems are secure.

    Don't even get me started on social engineering and how circumventable many secured entry systems are. It's a sad thought that someone posing as a lowly janitor could have free rein in most data centers.

    P.S. Security policy writers: why not start by giving your employees with access to high-security areas a way to disable their keycards 24 hours a day by phone (including some sort of challenge/response question for them to answer)? Simple, inexpensive and effective compared to a lost or stolen keycard falling into the wrong hands.

    1. Re:"Security" analysts by MichaelSmith · · Score: 2, Interesting

      giving your employees with access to high-security areas a way to disable their keycards 24 hours a day by phone

      At my workplace the security people combined the ID card with the RFID access card so now if you lose the RFID card the person who finds it can go directly to our site and walk in.

  7. lol by spykemail · · Score: 4, Funny

    It's the same thing people always do when they screw something up and don't know how to fix it - throw money at it. I love it when IT companies get paid to implement "security" features (speed bumps) then "service" (disable) them. It would be like funding an invasion of a country then paying for the reconstruction of all the shit you just blew up~

  8. Hahaha by foo+fighter · · Score: 2, Insightful

    hahahahahaha!

    Twenty percent...

    Oh, that's rich. Oh my. Oh. Hoo!

    Flying Spaghetti Monster, I love surveys and statistics. I've worked in internal security for the past couple years at a big accounting firm and as a security consultant for many years before this.

    Everyone knows they should be doing more to stay secure, but that fact is security doesn't do anything obviously positive for the bottom line. It's like flossing: most people floss when they have some chicken stuck between their molars but they don't do it every night. (Little tip for everyone trying to get money for security: give up on ROI; sell it like you're selling an insurance policy.)

    When CIOs or CISOs get these surveys they fluff the numbers because they know they are supposed to be secure even if they have a hard time justifying security spending to the Board. "Oh yeah, we spent $X on Security. That's about 15-25% of our IT budget." What they don't say is that number includes the payroll (including salary, benefits, and payroll taxes) of all IT staff that have anything to do with security, audit, or regulatory compliance.

    Contrast that with asking them what they spent on email they'd probably tell you about their Exchange license fees and maybe some server hardware. They'll leave out staffing costs, retention software and SAN, etc.

    My guess is that the average IT budget is spending maybe -- MAYBE -- 10% on security, audit, and compliance related expenses.

    I will admit here that I didn't RTFA. If the survey population was mostly US-based publicly traded companies that fall under SOX regulations the 20% number is a tiny bit more believable because CFOs and CEOs don't want to go to jail based on a fuckup by a minimum wage (in their frame of reference) IT staffer.

    --
    obviously no deficiencies vs. no obvious deficiencies
    1. Re:Hahaha by ScrewMaster · · Score: 2, Interesting

      Security is a subset of IT, and IT as a whole is not a profit-center ... it's an operating expense. Now, what is it that most execs try to do with operating expenses?

      --
      The higher the technology, the sharper that two-edged sword.
    2. Re:Hahaha by ScrewMaster · · Score: 4, Insightful

      And you so absofuckinglutely missed the point it's almost hard to bother replying. You seem confused about the term "profit center" which has a very specific meaning in most businesses. I didn't say that advanced technology was useless or doesn't help industry: I've been an industrial software developer for damn near thirty of those years, so there's no reason to get testy. I suspect you're just being deliberately obtuse so's you can use the word "absofuckinglutely". Good for you. If you'd actually grasped what I was trying to say, you'd have understood that I was referring to the perspective of the suits running a company, not the utility of information technology in general.

      Look, you run a company. How do you see the world? You see it in terms of money coming in ... and money going out. Those guys on the production floor making product? Money coming in. That programmer cranking out code for the latest release of the company's premier software product? Money coming in. That's what the corporate executive sees as a "profit making center", and that's how I defined it.

      Now, let's take a look at some other internal functions in any company:

      Sales & Marketing? Not a profit center, but without it there'll be no profits, plus which suits understand those departments. They generally haven't a clue how design and production work.

      Accounting? Not a profit center ... but even a suit sees that as money well spent so he can see how much money he has accumulated. Besides, there are numerous laws which require compliance.

      Customer support? Not a profit center. "Too bad our drain-bamaged customers can't handle all their own problems, we'd save a bundle. No, we're not going to upgrade the call center, matter of fact we're shipping it to India next month. Start training Habib here ... he's replacing you."

      Internal IT department? Not a profit center. "Too bad all those stupid people that work for us can't handle their own problems. We'd save a bundle. Also, you gotta watch those IT guys, always wanting to spend our money on the latest fancy computer toys."

      So far as external threats are concerned ... who cares? "What? You want me to authorize 250 grand for security upgrades to fend off potential threats? Forget it, I'd have to reduce our bonuses this year and that sure ain't gonna happen ... here's fifty K and you're lucky to get that. Besides, I don't understand all this "black hat" "white hat" shit. What's a firewall, anyway? I think my car has one. My dog had worms once."

      That's what I'm talking about. I'm sorry if you're an IT guy and took offense, but the facts are clear: IT and its very important offshoot, network security are simply not in the average PHBs top ten list of important areas to spend money. There are some corporations that get it, and make themselves into hard targets, but not enough. Not nearly enough. Part of the problem is that good security is more a matter of good people that it is good equipment.

      --
      The higher the technology, the sharper that two-edged sword.
    3. Re:Hahaha by SL+Baur · · Score: 2, Insightful
      Well put.

      Part of the problem is that good security is more a matter of good people that it is good equipment. And the other parts you laid out pretty nicely.
  9. Security is tricky... by Dirtside · · Score: 4, Insightful

    The trickiest thing about security is that there's no reliable way to tell for sure whether it's worked or not. Any security system can be defeated by a properly designed attack, although for a given system this may never happen if there's no one who has both the resources and desire to defeat it.

    But the trick is, a sufficiently well-planned attack can defeat security without anyone knowing it happened. So you can't really rely on a count like the number of detected intrusions (whether they were thwarted or not). The result of this fact is that there's a huge amount of crosstalk about "best practices" and what's Good Security and what's not. You could have a system that tracks N intrusions per year, and thwarts them all, but if there were 2N intrusions that were not detected (let alone thwarted)... you go around claiming you've got great security, but do you really?

    This doesn't mean we shouldn't try to have security, obviously, but it does mean that security is a giant, tricky grey area.

    --
    "Destroy science and religion. Science would re-emerge exactly the same; but not religion." - Penn Jillette, paraphrased
    1. Re:Security is tricky... by Time+Ed · · Score: 2, Informative

      I'm sorry, but this is wrong. And a trap a lot of IT managers fall in to. Don't negate pragmatism with cynicism. Thinking that no barriers will hinder an attack then sitting on your hands because of it keeps the dollars out of your budget.

      Security isn't "tricky" or a "grey area". Security is awareness. Understanding how and where the machines on your network communicate is usually all that's required. If you take the time to study the traffic flows every day, monitor your choke points, and respect the computing requirements of your users (who, by the way, are the business), you have a very good chance of thwarting a targeted attack or spotting a previously successful one (remember that anyone who gets in to your network has to get back out).

      The best security tools are free. What costs are bodies. Salary plus benefits for a decent analyst can top $150k/yr. Good security engineers or consultants can be twice that or more. I don't know if those costs are figured into TFA percentage. Then there's the cost of compliance - which is a real cost. Audits and compliance take bodies from other projects and initiatives, alter business timelines, and add complexity to the infrastructure. Anyone who's been through a PCI audit can attest to the expense. Audit costs leave very little for machines and software.

      Want money for security? Show your managers where the weak spots are. Where is your machine and software inventory? What are your critical systems? How is your patch management system working? Are your IDS's tuned to your inventory and patch level? What about the change management system? Do you know what changes have been made on your network? Do you have an accounting of all the ACL's in your firewalls and routers? Do you know how traffic flows in your network? Can you demonstrate it? The business parlance for these things today is "process". Do you have a Security Process? Want money? Demonstrate your Process....
      Regards,
      t-e

  10. In Short... by Hooya · · Score: 2, Insightful

    ... Business spend 20% of their IT budgets - but only after spending 80% of the budget on MS software.

    I can't believe business (we currently do) have "hiring/bonus/travel" freeze but don't think twice about spending money on MS Software specifically. I guess better to pay MS employees than your own.

  11. Evidently coffee must be = 21% of IT budgets by MadMidnightBomber · · Score: 2, Insightful

    "If you spend more on coffee than on IT security, then you will be hacked," [Richard] Clarke said during his keynote address. "What's more, you deserve to be hacked."

    --
    "It doesn't cost enough, and it makes too much sense."
  12. Depends on your view of "security" by pedestrian+crossing · · Score: 3, Informative

    A clueless Admin hosting something maybe. But by default install of Desktop Linux those services that can be cracked if not correctly setup are not running.

    You are taking a very shallow view of security here. Sure, controlling what services are listening is a good first step. But your biggest threat isn't the outside hacker. It's the inside guy. It's being able to -prove- who did what, when.

    A defualt install of Desktop Linux is far more secure and safe then the default install of Windows.

    But once you move beyond that default install, and beyond shutting down unnecessary services, Linux isn't necessarily that "secure". The default install of Linux still has many problems that have to be addressed in order to have a secure system. Of course, so does Windows, but my point is that you cannot just load Linux, turn off services, and think you have anything like a secure system. In fact there are some advisable security requirements that are harder to implement on Linux than on Windows.

    I have secured both to NSA recommended standards, and yes, in general I prefer Linux, but don't fool yourself that any like a default Linux install is inherently secure, especially when it comes to auditing and attribution.

    --
    A house divided against itself cannot stand.
  13. Re:necessary precautions though? by pedestrian+crossing · · Score: 2, Insightful

    Do these firms spend these security dollars properly or do they just do as recommended by whichever software/analyst group wants to sell them more software/and or information on holes? How much of the $$$ designated forward security is worth it?

    Insightful question.

    Managers and the clueless (obviously not mutually exclusive sets!) are always looking for a "security product", the silver bullet.

    The reality is that security is a process, not a product. You have to incorporate it into your policies, plans and products from the ground up.

    Security "products" (firewalls, IDS, NMS, etc.) are the icing on the cake, but are pretty much meaningless on their own. This is clearly not what most managers want to hear, they want to spend some money and be done. That's why there is so much money to be made in security snake oil, because the reality of information security is that it is expensive, not in terms of buying stuff, but in terms of an ongoing commitment to incorporating the principles into everything you do.

    Many times this translates into the fact that the easiest path to getting something done is not the best path. That is a difficult reality for management to relate to.

    --
    A house divided against itself cannot stand.
  14. Honesty? by Speed+Pour · · Score: 3, Insightful

    Crazy question...since nobody else has bothered to ask it...is it possible that the average company feels they will appear more "privacy responsible" by claiming to spend a huge portion on security?

    Somehow I'm picturing companies answering surveys with 20%, stock investors are probably hearing 2%-5%, and the people who actually make decisions are really putting in about 7%-12%.

    --
    - Nobody would know what RTFA meant if it didn't need to be said all the time
  15. Y2K Redux by bstarrfield · · Score: 2, Insightful

    Seems to me that we're seeing another Y2k scenario - there is a real issue, and let's all overreact. Y2K was a profitable business for many consulting firms, contractors, and software vendors. The Y2K situation was something that needed to be addressed but by scaring C-level executives there's great profit to be made!

    Read one of the security journals, look at the marketing hype coming out of Symantec, McAfee, and any number of security consulting firms - the primary message is fear. Fear of some unquantifiable buggiman come to get your precious data. Precious little data on how many monsters are out to get your data, but you best be afraid. And I agree - there is reason to be concerned, but no reason to be hysterical and dedicate one fifth of your IT budget to the nebulous Security functions.

    How many of these security consultants are brand new? How many are receiving certifications from the very same groups that are attempting to promote the opinion that there's a security crisis? Can you fix security problems yourself, within your own firm? Damn likely. Many IT groups underestimate their abilities (or their senior managers do), and outsource a job that could, perhaps, be done better in house.

    I realize that we can't ignore the security issue, just as we couldn't ignore Y2K. But hysterically throwing money onto the problem won't solve the problem either. Don't waste your money if you can avoid it. Don't just fall for the drama of the moment if at all possible

    --
    /* Dang, I can't type that well. */
  16. Re:Thanks, Bill! by drsmithy · · Score: 2, Insightful

    A common misconception but easily corrected by paying attention.

    Anyone who doesn't think market share is a significant contributor to a product's "security record", is a fool blinded by zealotry. There are so many critical aspects of "security" that are related to market share, it's simply an inescapable factor.

    The Apache vs Microsoft ISS example where market share is skewed in the opposite direction shows the market share thing is either a feeble excuse or complete and utter marketing bullshit.

    Those "paying attention" will notice that a) IIS has had better "security" for some time now and b) IIS and Apache have similar levels of marketshare. Even before then, cherrypicking an atypical example from a tiny subset of the market, does not make for a compelling argument (neither for nor against) in the general case. The plural of anecdote is not data.

    Furthurmore you HAVE to bring technical aspects into the discussion for it to be anything other than worthless fortunetelling.

    From a technical perspective, all the major platforms have been basically equivalent for over half a decade now (and before that, Windows NT was - "technically speaking" - streets ahead of unix variants, ironically refuting the whole "bad design" argument in one fell swoop). Further, the single biggest influence on security - users - is "non-technical".

    Finally, your "marketshare is irrelevant" argument completely misses the point I was making - that even if all else was equal (ie: in any given situation, a Linux machine and a Windows machine had exactly the same probability of being compromised) you still expect to have "dozens" more Windows machines compromised than Linux machines, because they outnumber them ca. 40 to 1. Here, I'll even make a car analogy to emphasise the point; There are 100 identical cars in a garage. Ninety of them are owned by Caucasians, six by Asians, three by Negros and one by an Indian. Which ethnicity do you expect have the largest number of cars stolen from them ? Do you believe this is due to racism or statistics ?

    Or, to put it another way, if you believe Windows - today - should have anything close to as "good" a "security record" as Linux, you fail at basic logic, reasoning and maths.

  17. Re:increase in security budgets by SCHecklerX · · Score: 2, Insightful

    It's more because infrastructure 'security' has been commoditized. You now by a product to do this, another to do that, etc. What management doesn't get is that security is a process, and good security does not equal buying a bunch of commodity products. We can do without them, but most companies would rather pay consultants and vendors than listen to their own security analyst staff who have likely already given the managment 10 different ways to mitigate vulnerability to specific threats, but it only became 'real' when there was something to buy to deal with it.