On average, only 0.4% of a company’s revenue is dedicated to information security in the United States. By 2011, however, that figure will increase by 10 times to 4% of revenue, according to a new survey* by Gartner.
Information security expenditures include costs for people, hardware, software, external services and physical security for all information security activities within an enterprise.
“While e-mail viruses and international espionage steal the media limelight, security issues span every business process,” said Gartner research director Roberta Witty. “Responsible security practices begin with business planning and carry through to the technology purchasing, implementation and improvement stages. After all, there’s no sense investing in locks if you’ve built your house out of paper.”
According to the Gartner, by 2004, 80% of enterprises will be using the Internet as an integral part of their business processes. Half will experience a financially significant loss due to Internet-borne incidents by that time.
“Open supply chain communications will explode over the Internet over the next two years,” continued Witty. “Enterprises will save a lot of money and headaches if they address their total security plans now.”
* Total Cost of Ownership Model for Information Security
About Gartner, Inc.
Gartner is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. The company is headquartered in Stamford, Connecticut and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide.