Page 65 - CDM-Cyber-Warnings-March-2014

growth", according to Daniel Schulman, Symantec’s Chairman. That will be determined once that individual is on board. As a part of Intel, McAfee has become more focused on investing in its own research and innovations rather than getting it from outside acquisitions. With Intel's deeper pockets and broad research organization, it has more resources to do so. That’s a lot different than the company was three years ago. Symantec and McAfee built their businesses on traditional firewalls and anti-virus products. It seems those technologies were built for a different time, when the focus was on protecting the perimeter. Now, thanks to mobile devices and cloud computing, networks are becoming more complex, which means there are more areas to protect against vulnerabilities. At the same time, the treasure trove of data being placed online has attracted more sophisticated state-sponsored and organized-crime hackers. As traditional methods of fighting cyber criminals such as antivirus software and firewalls have failed to keep companies safe, start-ups experimenting with new ideas have been welcomed with open arms by the venture capital industry. Global demand for information security technology is growing at a robust 9% compounded annually, says Gartner research director Lawrence Pingree. By 2016, Gartner anticipates that global spending on information security systems will soar to $85 billion, up from an estimated $65.7 billion this year. As a result there is renewed interest in cybersecurity in Silicon Valley. Over the last year, venture capitalists, angels, and private equity investors poured over $1.4 billion into the security market across 239 deals. Year-over-year (YoY) funding has jumped 29% behind a massive Q1’13, which saw 10 companies receive funding rounds over $10 million including AirWatch, WhiteHat Security and Nok Nok Labs. In fact, the most notable deal of the year may be the $154 MM capital raise by AirWatch led by Insight Ventures. Meanwhile, YoY deal growth in the security space hit 19% behind a surge in deal activity in 2013. This investment level is up substantially from approximately $1 billion in 2011 and some $500 million in 2010. " # % " $ " # ! !