Lots and Lots of Cyber Security Companies

There are lots and lots of cyber security companies.

Did I say there are lots of them?

There are lots and lots of cyber security companies

We are compiling data on cyber security companies, and we recently passed more than 800 such companies. We are still counting.

The more we dig into this segment of the digital landscape, the more we find unseen numbers of cyber security companies around the world. Locating one or two leads to finding another five to ten cyber security companies we had not been seen before.

As we continue to survey the number of companies delivering cyber security services, products, subscriptions and managed - fixed fee - services, we are amassing troves of information.

For example, we've found the following:

  • 10 percent of cyber security companies are pure startups with fewer than 10 employees and less than $1 million in revenue
  • Another 10 percent of cyber security companies are established companies with more than 1,000 employees and more than $250 million in revenue
  • The other 80 percent of cyber security companies fall somewhere between these two with between 10 employees and 1,000, and between $1 million and $250 million in revenue

The world wide industry of cyber security companies is very dispersed in size - 10 percent startup, 10 percent large and established, and 80 percent in between.

The dispersed composition of this industry reminds us of prior periods of dramatic industry change, such as the one that occurred as minicomputer and mainframe giants ignored the small band of software startups for plug-compatible hardware that eventually disrupted an existing market order.

It also reminds us of the industry change that occurred when networking companies - such as 3Com, Cisco, Juniper Networks, Banyan and Novell - all broke into free-field runs for stardom starting in the mid- to late- 1980s, and then had to cope with the wide open fields of the Internet.

Figure 1: Composition of the Cyber Security Industry - 2018










The cyber security industry composition of 10-80-10 in 2018 is a harbinger of change to come.

Some of the change is predictable, and includes:

  • More than 1,000 cyber security companies
  • Unequal rates of revenue generation capability and market reach
  • Older cyber security companies becoming takeover fodder for private equity companies
  • One hit wonder cyber security unicorns emerging from a sea of eager startups
  • Subscription-based services taking larger shares of the enterprise digital spend pie

In addition to change, we are assembling demographics and factors driving cyber security companies, including their:

  • Headquarters
  • Leaders
  • Geographic markets served
  • Partnerships and get-to-market strategies
  • Customers
  • Digital ecosystems served
  • Industries served
  • Problems solved
  • Business models

The combination of who, what, where, when and why affecting this industry will be helpful for digital cyber planners who will need to make better informed decisions about which companies to select for innovation, fixed-fee managed services, integration services, hybrid operation services, Cloud subscription services, end-of-life support for some on-premises products and services, orchestration services, security operations services, response and recovery services, business process integration, and staff augmentation services among many other spend categories for cyber.

Look for more information - including what the data is and what it means - from us in the future as we continue to spotlight the cyber security market ecosystem.

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