UBS predicts flat corporate spending on IT as cloud computing service providers look set to take over cybersecurity customers.
Legacy cybersecurity products appear to be on the decline and analysts predict slow corporate IT spending as the cybersecurity industry moves over to cloud computing, says an Investopedia report. Investor’s Business Daily quotes research analyst Brent Hill of investment firm UBS as claiming that the US software cybersecurity market is on its last leg and competition will force vendors to cut prices.
“We are three years-plus into the cybersecurity spending ‘supercycle,’ where indiscriminate budgets and ‘binge buying’ seen in 2014/2015 appear to be firmly behind us,” says Hill.
However, he believes some industry giants are well-positioned to ride out the spending shift, because they have made moves into the cloud-based security market and teamed up with cloud providers.
Cybersecurity stocks are currently subjected to bouts of volatility but the upcoming earnings season, says Investopedia, will make things clearer.
Read full report here.
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