Gulf lags behind in security allocations

Gulf-based enterprises spend only three per cent of their IT budgets on security while businesses globally allocate at least 10 per cent.

"In the international marketplace customers typically spend 10 per cent of their IT budgets on security while the Gulf still has a long way to go," Premchand Kurup, CEO of IT security solutions company Paramount Computer Systems, told Emirates Business. "There is insufficient awareness about the risk of data theft.

"The security market is worth $90 million [Dh330m] to $100m in the UAE while Qatar, Bahrain, Oman and Kuwait are worth $100m and Saudi Arabia is also worth $100m. Presently, we have a 20 per cent market share in the security solutions segment and therefore there is a lot to achieve."

Guru Prasad, General Manager-Networking at IT security distributor FVC, agreed that spending on IT security is low.

"Compared to the global average, IT security spending in the region is only between three and seven per cent. Verticals such as finance, government and sectors regulated by public bodies spend on security. The region has a low average compared to global markets, mainly because of the small and medium businesses sector, which has a low uptake on security," he said.

He said: "In the advanced markets SMBs also spend on UTM [unified threat management] and not just on desktop, e-mail or perimeter security, which is the trend in the region."

SMBs in the region have a long way to go and security companies such as Fortinet are working on educating these users.

"These companies don't realise the value of security and, therefore, education is required. Large enterprises are implementing even advanced solutions such as the new web application for servers and are concerned about security compliances," said Judhi Prasetyo, Channel Manager at Fortinet.

Kurup said more banks have realised the importance of identity checks and data protection this year and are investing in this area.

"Thirty per cent of our business is from banking and they have continued to spend on identity and access management, which are crucial today with disgruntled employees leaving organisations. Though the level of investment has fallen in Dubai, the negative impact is offset by the external markets."

Kurup said banks are using technologies that enable a user to have a single sign-on for all applications instead of having to sign-on to each separately. "Biometrics are being used with this technology," he said. "In this area we have supplied 14 implementations in the region and plan to sign up an additional 10 customers by the end of the year. These customers are from the telecom, government, oil and gas and banking sectors. Investment is being made in this segment, especially as it is possible to make a cost justification."

Kurup has seen many customers taking advantage of consulting services before investing in security. "Paramount has seen an increase in IT consulting services of up to 40 per cent in 2009. This is mainly in the area of risk assessment and confirming ISO 20000 standards. We expect a 65 per cent growth from our existing customer base who are familiar with security processes and applications," he said.

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