IBM - FEATURED ARTICLES
September 08, 2015
IBM Security Report Q3 2015
By Steve Morgan
, Founder & CEO, Cybersecurity Ventures
IBM (News - Alert) Security: fastest growing vendor in the security software market
- Worldwide security software revenue totaled $21.4 billion in 2014, a 5.3 percent increase from the prior year, according to Gartner (News - Alert), Inc. Low growth in endpoint protection platforms and a decline in consumer security software — markets that together account for 39 percent of the market — offset the strong performance of high-growth areas, such as security information and event management (SIEM), secure Web gateway (SWG), identity governance and administration (IGA) and enterprise content-aware data loss prevention (DLP).
- Gartner recently listed the top five security software vendors by 2014 revenues (USD), market share, and growth. IBM leads the pack with a 17 percent growth rate, more than three times the nearest competitor. The top five by revenues: Symantec with $3.69 billion in revenues, 17.2 percent market share, and a (- 1.3 percent) decline in growth; Intel (News - Alert) Security with $1.825 billion in revenues, 8.5 percent market share, and 4.5 percent growth; IBM Security with $1.486 billion in revenues, 6.9 percent market share, and 17 percent growth; Trend Micro (News - Alert) with $1.052 billion in revenues, 4.9 percent market share, and a (-5.9 percent) decline in growth; EMC (includes its RSA business) with $798 million in revenues, 3.7 percent market share, and 5 percent growth.
- IBM Security has ascended to the No. 8 position on the Cybersecurity 500, a list of the world’s hottest and most innovative cybersecurity companies, and it is the top listed firm in the professional services category. Gartner has called IBM the largest security vendor selling exclusively to enterprises. IBM Security grew three times faster than the entire cybersecurity market in 2014.
- “IBM is ushering in an intelligence-driven era of security with our clients” says Brendan Hannigan, General Manager at IBM Security. “We are outpacing the competition because we help clients safeguard the full spectrum of a risk framework – people, data, applications and infrastructure – by deploying the industry’s broadest portfolio of security consulting, services, and software” adds Hannigan.
- Ginni Rometty, IBM Corp.’s Chairman, President and CEO, had the following to say at the recent IBM Security Summit in New York City, when she addressed CISOs (Chief Information Security Officers), CIOs, and CEOs from 123 companies in 24 industries. – “We believe that data is the phenomenon of our time. It is the world’s new natural resource. It is the new basis of competitive advantage, and it is transforming every profession and industry. If all of this is true – even inevitable – then cyber crime, by definition, is the greatest threat to every profession, every industry, every company in the world… That’s why IBM created a Security Business Unit, marshaling the knowledge of 6,000 experts.”
- Speaking at the IBM Security Summit, IBM’s CEO Ginni Rometty went on to say “We announced that more than 1,000 organizations across 16 industries are participating in our X-Force Exchange threat intelligence network. We only launched the network a month ago, so its rapid growth speaks to significant need. And we’re bringing a potent weapon to the fight – a 700 terabyte threat database including two decades of malicious cyberattack data from IBM’s security operations, as well as anonymous threat data from more than 4,000 organizations, which have contributed 300 new collections of data in the last month.”
- According to an article in The Wall Street Journal, IBM reported second-quarter (Q2 2015) revenue fell 13.5 percent. That adds to a string of quarterly declines that now spans 13 periods despite company efforts to scale back on legacy hardware and push into cloud-based software and services. Technology services revenue was down 10 percent; business services fell 12 percent; software dropped 10 percent; and overall hardware revenue sank 32 percent.
- “IBM’s security business is hot and innovative according to our criteria which includes the security sectors they cover, CISO and corporate security staff feedback, research and analyst firm observations and findings, investigative media coverage, demos and presentations at conferences, notable implementations, and revenue growth” says Steve Morgan, Editor-In-Chief of the Cybersecurity Market Report. “If there’s a concern, it’s that IBM’s security business only makes up 1 to 2 percent of IBM’s total revenues (before the recent revenue declines it was closer to 1 percent). If the company isn’t able to execute on its corporate strategy to reinvent itself around next generation technologies – then does it start to pull back on resources to a unit that contributes a tiny fraction to the bottom line?
Edited by Stefania Viscusi