A recent survey from strategy consulting firm Altman Vilandrie & Company is stating that nearly half of U.S. companies using an Internet of Things (IoT) network have been hit by a recent security breach, which reportedly cost up to 13 percent of smaller companies’ annual revenues.
The survey, which polled about 400 IT executives across 19 industries, showed that 48 percent of firms have experienced at least one IoT security breach. The respondents to the survey also revealed that the cost of the breaches represented 13.4 percent of the total revenues for companies with revenues under $5 million annually and amounted to tens of millions of dollars lost for the largest firms. Nearly half of firms with annual revenues above $2 billon estimated the potential cost of one IoT breach at more than $20 million.
“While traditional cybersecurity has grabbed the nation’s attention, IoT security has been somewhat under the radar, even for some companies that have a lot to lose through a breach,” said Stefan Bewley (News - Alert), Director, Altman Vilandrie & Company, who co-directed the survey. “IoT attacks expose companies to the loss of data and services and can render connected devices dangerous to customers, employees and the public at large. The potential vulnerabilities for firms of all sizes will continue to grow as more devices become Internet dependent.”
The data indicates that companies that have not experienced a security incursion have invested 65 percent more on IoT security than those who have been breached, and that IT decision-makers often chose IoT security solutions on provider reputation and product quality rather than cost.
“We see it being critical for security providers to build a strong brand and reputation in the IoT security space. There are lots of providers developing innovative solutions, but when it comes to purchasing decisions, buyers are looking for a brand and product they trust,” said Ryan Dean, Principal, Altman Vilandrie & Company, who co-directed the survey. “Price is a secondary concern that buyers tend to evaluate after they have narrowed their options down to a few strong security solutions.”
To learn concrete strategies to avoid such security breaches, join us at the IoT Evolution Expo, July 17 to 20 at Caesars Palace, Las Vegas.