Can International Business Machines Corp. (NYSE:IBM) Help Stall The $400 Billion Cybercrime Loss?
It is emerging that businesses lose a whopping $400 billion every year to cyber crime with other estimates putting the loss at $500 million annually. That’s a problem. Can International Business Machines Corp. (NYSE:IBM) be the solution? According to IBM’s CEO, GinniRometty, cyber crime is the greatest threat currently facing almost every company and profession.
With businesses losing billions of dollars through cyberattacks, International Business Machines Corp. (NYSE:IBM) can be seen trying to present itself as the solution. Through its IBM Security unit, the company is targeting enterprises with data protection solutions that it hopes can keep them secure from hackers and allow them to save the billions of dollars lost through data breaches.
6,000 security experts
IBM Security boasts about 6,000 security experts whose role involves tackling the cybercrime epidemic. Not only is IBM stepping forward to put its technology to work in securing data for corporations, but the company is also aggressive about raising cyber crime awareness.
At the International Business Machines Corp. (NYSE:IBM) Security Summit sometime earlier this year, Rometty spared no effort to talk about the threat of cyber crime and how organizations can work to secure their data. According to Rometty, data has become the new natural resource of the world as it forms the basis of competition in almost every industry and profession. As precious as data has become, protecting it needs to become a priority for every business, IBM believes. Toward that end, the company has its IBM Security unit through which it develops data security solutions targeting corporations.
$400 billion cybercrime loss
It is estimated $400 billion is lost every year because of cyber crime. Some estimates quote the figure loss annually through cyberattacks at $500 billion. The loss comes in the form direct damage to business operations and post-attack restoration costs.
$170 billion economy
With International Business Machines Corp. (NYSE:IBM) trying to put its best foot forward to deal with cybercrime, the company is also looking to unlock new revenue or at least incremental revenue. According to Gartner, IBM Security is the largest security vendor that targets enterprises exclusively. The division generates about $1.5 billion in revenues and grows at the rate of17%. Cybersecurity is a nearly $77 billion economy and is expected to rise to $170 billion by the next five years.
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