Global IT corporations to enter security market¡¦Competition method to change
Lee Gyung Tak | kt87@ | 2018-01-29 11:14:16

By Yonhab News

Global IT corporations are anticipating a shift in the security market as the cyber security business competes. Major companies such as Google, Amazon and Microsoft, which are in the IT market, have been actively establishing security companies and developing M & A along with their own solutions.

Google`s holding company, Alphabet, stated on January 25 that it decided to separate the Chronicle, an internal research organization, as a cyber security specialist. It is the third time that the Google X business was established as an independent entity under the alphabet, following Beryli, a biotech unit in the autonomous car segment. Cyber security is seen as a major growth area in the future, and it is interpreted as a sign of full-fledged competition. Chronicle started in early 2016 as an internal team of Google X, the future business research and development organization of Alphabet.

The CEO of the independent company will be Chief Operating Officer (COO) of former Symantec, Stephen Gillett. Cyber security data analysis, and malicious code threat warning. Especially, it aims to reduce the time of detecting security incidents from days, hours to minutes by using machine learning technology. It is a strategy to overtake existing security companies and take control of the market quickly.

Amazon acquired the cyber security company `Sqrrl` for the security services of Amazon Web Services (AWS), a cloud service subsidiary, on Wednesday. Founded by former NSA staff, the company proactively detects and tracks zero-day security threats through a solution called the "threat hunting platform" with machine learning technology. In December, Amazon unveiled the Amazon Guard Duty, an intelligent threat detection service. To increase competitiveness in the smart home device market, it acquired Blink, a wireless security camera developer.

Meanwhile, Microsoft has been steadily acquiring Israeli security startups such as Aorato, Adallom, Secure Island and Hexadite to boost technology. In the meantime, it announced that it will invest more than USD 1 billion in cyber security research and development (R & D) every year since last year. There is also a rumor in the industry that Microsoft may pursue the acquisition of Fireey, a global security company.

Intel has acquired Intel cyber security company McAfee in 2011 and established Intel Security. Last year, 51% of the shares were sold to private equity funds, but it is expected to take aggressive action in the field of cyber security again after suffering from recent security issues. Tencent, the largest IT company in China, is also attracting its allies by declaring that it will build a "cyber security community" by opening its own technology on January 14.

Park Chun-sik, a professor at Seoul Women`s University, pointed out, "The move of global corporations is aimed at strengthening the security of their services and products. However, as the security market has expanded recently due to the spread of IoT, "As we are making preemptive investments such as M & A, we need to look at large domestic companies and make a strategy."

"It seems that global IT companies with tremendous financial resources are likely to rapidly expand their market by internalizing security as a basic service and offering intelligence services," a security industry official said. "It can be a crisis for traditional security companies." "Unlike foreign companies, major Korean companies such as Samsung, LG, SK, and KT are not likely to enter the security market. They will be able to actively participate in the market, while SMEs need to increase their technological competitiveness. "He added.

According to market research firm Market Research Future, the global cyber security market is expected to reach USD 163.2 billion (USD 173 trillion) in 2023, an annual average growth rate of 10.7 %.

By Lee Gyung Tak kt87@


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