As with many areas of the economy, enterprise technology spending was hurt by the Covid-19 pandemic. According to consulting firm Gartner, worldwide IT spending declined 3.2% last year to mark a rare rollback in this category.
One important exception was cybersecurity spending, which grew 6.4% in 2020. And this year the segment continues to grow at an above-average rate as Gartner estimates global spending on information security and risk management services will top $150 billion — up 12.4% from last year, and about double the 6.2% growth rate for worldwide IT spending as a whole.
The reason for this extra cash flowing into security should be obvious. From high-profile events, like the second wave of cyberattacks in May from the hackers that targeted SolarWinds to the all-too-familiar warnings we get from our phone or laptop about potential phishing schemes, we are surrounded by cyber risks in 2021. And the problem is not going away.
Many investors have jumped into cybersecurity stocks in recent years to capitalize on this trend. However, it’s important to note that even if the overall pie is growing, there are some companies that have a decidedly bigger piece of that…
