Organisations Face Growing Cybersecurity Complexity, Study Finds

A new global study by the IBM Institute for Business Value (IBV) and Palo Alto Networks has revealed that businesses are grappling with mounting cybersecurity complexity, managing an average of 83 different security solutions from 29 vendors. The research suggests that this fragmentation is limiting efficiency and increasing operational costs, with security platformisation emerging as a potential solution.

The study, titled “Capturing the Cybersecurity Dividend: How Security Platforms Generate Business Value,” found that 52% of surveyed executives believe security fragmentation is hindering their ability to tackle cyber threats effectively. However, 75% of organisations that have embraced a platform-based security approach report improved integration across security, hybrid cloud, and AI, leading to operational benefits and cost reductions.

Security Complexity Poses Financial Challenges

The financial implications of cybersecurity complexity are significant. Surveyed executives estimate that security fragmentation and inefficiencies cost their organisations an average of 5% of annual revenue. For a company with a revenue of $20 billion, this equates to a $1 billion impact. Costs stem from security incidents, lost productivity, stalled digital transformations, and reputational damage.

“Organisations continue to be challenged with updating their security posture to address new threats, while simultaneously being pressed to reduce complexity and decrease spend,” said Mark Hughes, Global Managing Partner for Cybersecurity Services at IBM. “Security executives need to enable innovation, protect assets and derive value from their cybersecurity investments to help their organisations thrive and further their business goals.”

Karim Temsamani, President of Next Generation Security at Palo Alto Networks, added: “We have seen the positive impacts of adopting a platformised approach to security, and the benefits it delivers to organisations. In today’s AI-fuelled world, strong partnerships are more essential than ever. IBM and Palo Alto Networks are aligned on a common vision of creating better outcomes for our customers—whether in value, operational, or security—and platformisation accomplishes all of them. This isn’t just about improving fragmentation today, it’s about enabling better outcomes for the future.”

Key Findings from the Research:

• 52% of executives cite complexity as the biggest challenge in cybersecurity operations.
• 80% face pressure to cut security costs, while 41% say fragmentation has increased procurement expenses.
• 4 in 5 organisations that lack a platform-based approach struggle to manage the volume of cyber threats effectively.
• 80% of businesses that have adopted platformisation report full visibility into vulnerabilities and threats.
• Companies using security platforms reduce their mean time to identify and contain cyber incidents by 72 and 84 days, respectively.

Platformisation as a Strategic Security Approach

The study underscores the benefits of consolidating security tools into a unified platform. Companies that have implemented a platform approach report nearly four times higher return on investment (ROI) from their cybersecurity spending, alongside revenue growth and improved operational efficiencies.

As AI adoption accelerates, 90% of surveyed executives expect to scale or optimise AI-driven security within the next two years. A platform approach allows organisations to integrate AI seamlessly, enhancing data analysis and decision-making while ensuring robust governance and security measures.

IBM and Palo Alto Networks are collaborating to support businesses in this transition. Through their joint Cyber Range experience in Cambridge, Massachusetts, organisations can train teams and refine security operations within a simulated cyber threat environment, helping them better navigate the evolving cybersecurity landscape.