The lure of the cybersecurity market

Cybersecurity is a booming market that now weighs in at 50 billion dollars. The point for investors.

Cybersecurity is back in the spotlight after an attack on a UK National Health Service (NHS) IT provider. The incident has serious implications for a system that is used to dispatch ambulances, book out-of-hours appointments and issue emergency prescriptions. It also embodies the complexity of the challenges the cybersecurity market is trying to tackle: protecting the entire value chain within a business sector, right down to the smallest integrated vendor. Finally, he proves those who claim that SMEs are too insignificant to be targeted are wrong.

Large organizations have been on high alert for years: in a recent interview with the Financial Timesthe CEO of Norway’s $1.2 trillion sovereign wealth fund says he is more concerned about cybersecurity than markets, noting that Norges Bank Investment Management records more than 1,000 serious and increasingly sophisticated attacks each year, twice as much as two to three years ago.

These two examples show that in the age of self-driving cars and home devices that communicate with each other, data breaches can have serious and immediate consequences for us and those around us.

Just look at the cost of a single attack to understand the severity of this global problem and the resulting business opportunities. If we take Switzerland as an example, the country’s major healthcare, finance and pharmaceuticals sectors rank in the top three in terms of cost impact.

Cloud cybersecurity combines technologies, protocols and best practices to protect cloud-based computing environments, applications and data.

Cloud cybersecurity is the answer to this challenge. It combines technologies, protocols and best practices to secure cloud-based computing, application and data environments. According to Morgan Stanley, the cybersecurity market today valued at 50 billion dollars is one of the most dynamic in the world in the IT sector; consumer spending is growing faster on cloud-based security software than on digital transformation, artificial intelligence (AI) and machine learning (ML), customer relationship management (CRM) and data analytics.

CB Insights notes that unicorns (companies with a valuation of over $1 billion) in cybersecurity reached 30 in 2021. Such a saturated market with a very fragmented supply? At Stableton, we believe that companies that can effectively combine cyber protection with data backup, disaster recovery and related services are more likely to win in this segment than those that focus on one part of the spectrum of needs.

The company Acronis fits exactly that profile and also illustrates how investors can position themselves on cybersecurity as an investment topic. This Schaffhausen-based company is rapidly growing and is described as a pioneer in its field by technology consultancy Gartner. Founded in Singapore in 2003, Acronis has built its entire offering to ensure seamless integration of new products through its all-in-one cloud platform.

The resulting interoperability is critical to the company’s success, with 3x to 5x more data interfaces being developed for critical customer applications in diverse and sometimes highly regulated industries. As of 2021, Acronis has deployed its products in over 150 countries. Its clientele ranges from large industrial groups such as Airbus, 3M and ABB to the government of Abu Dhabi, not to mention a large number of SMEs that today appear to be a prime target for hackers.

Given this dynamic, Acronis’ ambition is far from the utopia formulated by many start-ups in recent years. Acronis’ global expansion is supported by leading venture capitalists such as CVC, Goldman Sachs, BlackRock and Insight Partners. Acronis is a private company and has always stayed away from an IPO, thus avoiding exposing its valuation to the sometimes irrational behavior of public markets.

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