In 2022, 83% of organisations experienced one or more data breaches, costing them roughly US$4.35 million per incident.1 Collectively, global cybercrime costs totalled around US$7.1 trillion.2 Cybercrime is predicted to cost approximately US$8.15 trillion in 2023, and may grow to almost US$15 trillion within the decade.3 Closer to home, Australians have been no strangers to the direct effects of cybercrime. From Medibank to Optus, almost half of all Australians had their consumer information leaked in a slew of large-scale cyber incidents last year,4 and combined cybercrime losses reached a record high of $4 billion.5
In the wake of such alarming statistics and events, it’s clear that cybersecurity is becoming an ever more critical industry, whether it be for the average user or billion-dollar businesses. Below we highlight three companies that are leading the charge in preventing malicious attacks on our digital safety, each a key player in its sector of the cybersecurity industry.
CrowdStrike: A Leading Endpoint Protection Platform
CrowdStrike is a leader in endpoint protection platforms (EPP), which helps customers secure end-user devices such as mobile devices, laptops, and servers. CrowdStrike’s solution is a software-as-a-service (SaaS) that works continuously to detect and analyse threats. The system is built upon 100% cloud-based architecture, which gives CrowdStrike a competitive advantage versus legacy, non-cloud incumbents. The company can set up its solution quickly and effectively in many different IT environments. For example, in 2020, the company was able to onboard retail giant Target as a new client in just 10 days.6
In the past, on-premises anti-virus software prevented cyberattacks by monitoring and scanning known threats in end-point files. But that security layer is largely reactive. Today’s best offerings leverage artificial intelligence (AI). CrowdStrike’s industry-leading offering, Threat Graph, is the brains behind the company’s AI-enabled cybersecurity solutions. Threat Graph can help CrowdStrike handle more than a trillion cyber events and analyse over 15 petabytes (15000 terabytes) of data per day.7 The data sets are all processed in CrowdStrike’s cloud, creating a network effect where the more data analysed across customers, the better Threat Graph AI technology becomes.
Zscaler: A Top Player in Secure Web Gateways
Zscaler is also a 100% cloud-based cybersecurity platform, so there is no hardware to buy or manage, and the platform is always up to date by making 250,000 security cloud updates per day.8 Zscaler’s Secure Web Gateways (SGW) solutions primarily focus on giving customers secure access to internally managed applications, like corporate emails, through its Zscaler Private Access (ZPA). They also provide solutions for external applications, like customer relationship management (CRM) software, through Zscaler Internet Access (ZIA). A Secure Web Gateway prevents unsecured traffic from entering an internal network through external web applications. Zscaler is like a middleman, connecting users directly to applications without going through their network.
Zscaler offers capabilities that could eventually render virtual private network (VPN) technologies obsolete. The company’s ZPA solution is easier to deploy, easier to manage, and more secure than traditional VPN solutions. ZPA provides users with access to internal apps, without the need to connect to a company’s network or expose those users to the internet. This architecture also completely limits the ability of a cyberattack to move horizontally across the network during a breach. The company describes this architecture as a Zero Trust Network, never extending the network to all users. Essentially, the network becomes deemphasised, and the internet becomes the new corporate network.9
With the proliferation of remote and hybrid working, securing access to internal and external apps on laptops, smartphones, and other Internet of Things (IoT) devices is paramount for organisations. According to Zscaler, 90% of organisations migrating to the cloud have implemented, are implementing, or intend to implement zero trust architecture, and more than two-thirds of companies agree that Zero Trust Network Access is crucial to cloud transformation.10
Okta: A Fast-Growing Company in Identity Access Management
Okta is a leading Identity Access Management (IAM) service provider. It focuses on ensuring only approved individuals can access an organisation’s information by implementing multi-factor authentication (MFA), application programming interface (API) access management, and single sign-on (SSO) solutions.11
Companies in the IAM field are also expected to benefit from the shift towards remote and hybrid work environments. With employees working from different locations and connecting from multiple devices, IAM allows IT departments to constantly monitor network activity. IAM also helps companies manage and secure internal points of access given to contractors or customers.
From an end-user standpoint, Okta’s IAM solutions provide access to all applications within a single portal. This feature reduces login-related helpdesk calls by 50% and makes it 50% faster for users to log in and use new apps.12 Analysts estimate that the Identity & Access Management market was valued at roughly US$13 billion in 2022 and is projected to reach close to US$37 billion by 2030 at a growth rate of 14%.13 And Okta currently holds a 45% market share in the industry.14
Cybersecurity Must Grow to Ensure a Safe Digital Future
The growing number of cyberattacks and their potential implications for sectors and governments worldwide makes cybersecurity tools indispensable for organisations to operate securely across multiple business functions. Whether it’s email, identity management, or protecting end-user devices, the three companies highlighted here are key players in keeping this increasingly digital world safer and exemplify the multi-faceted nature of the cybersecurity industry.
For more insights on cybersecurity and the growth opportunity for investors, read our in-depth investment case here.
