Why Asia Is Concerned About Cybersecurity

According to an article published on Channel News Asia, eight in 10 firms believe that their cybersecurity software is not as good as it should be. Ernst & Young surveyed 1,755 organizations in 67 countries.

Focusing on the finding of Singapore companies, Calvin Hui wrote, "The annual survey also found that 56 percent of Singaporean respondents felt that their budgets should be increased by up to 50 per cent to align their organization's need for cyber protection, with its management's' tolerance for risk. In addition, 68 percent cited budget constraints as a key reason for not boosting their cybersecurity capabilities."

Industry experts believe cybersecurity should constitute at least 6-8 percent of a firm's IT budget, particularly smaller companies who many believe are at a high risk for security breaches.

These findings are good news for network security companies such as Palo Alto Networks Inc. (NYSE: PANW), FireEye Inc. (NASDAQ: FEYE) and Cyberark Software Ltd. (NASDAQ: CYBR). As companies allocate a greater amount of their budget for IT security, these companies should be prepared to capitalize on the increase in demand for their services.