A new global study conducted by the IBM Institute for Business Value (IBV) and Palo Alto Networks reveals that organizations are struggling with the complexity of managing cybersecurity, using an average of 83 different security solutions from 29 providers. The report also highlights that 7 out of 10 organizations that have heavily adopted security platformization report that their cybersecurity investments directly support business outcomes, such as improving operational efficiency and generating revenue.
The study, titled “The Benefits of Cybersecurity: How Security Platforms Drive Business Value”, found that more than half (52%) of surveyed executives admit that the fragmentation of security solutions limits their ability to counter cyber threats effectively. At the same time, 75% of organizations that have embraced platformization believe that better integration across technologies—spanning security, hybrid cloud, AI, and more—is essential. The analysis suggests that adding more tools to combat evolving threats leads to inefficiencies, impacting performance and financial outcomes. In contrast, platformization helps companies reduce response times and costs without compromising security effectiveness.
Cybersecurity Complexity: A Modern Challenge
Increasing digital interdependence is expanding the attack surface and creating new security vulnerabilities. Cyberattacks are becoming more sophisticated and challenging to defend against, with artificial intelligence being used by both defenders and attackers in an escalating arms race of cybersecurity capabilities.
Faced with this evolving threat landscape, executives estimate that security fragmentation and complexity cost their organizations an average of 5% of annual revenue. For a company generating $20 billion in revenue, this amounts to $1 billion in costs. Additional expenses related to security incidents, lost productivity, stalled digital transformations, delayed AI initiatives, customer trust erosion, and reputational damage further exacerbate these costs.
“Organizations continue to face the challenge of aligning their security strategy with new threats while simultaneously reducing complexity and lowering costs,” said Mark Hughes, Global Managing Partner for Cybersecurity Services at IBM. “Security leaders must support innovation, protect assets, and extract value from cybersecurity investments to enable organizational growth and achieve business goals.”
“We have observed positive outcomes from implementing a platformized approach to security and the benefits it brings to organizations. In today’s AI-driven world, strong partnerships are more critical than ever,” said Karim Temsamani, President of Next-Generation Security at Palo Alto Networks. “IBM and Palo Alto Networks share a common vision of improving customer outcomes—delivering value, operational excellence, and security. Platformization is a step into the future, yielding benefits both now and in the years to come.”
Key Findings from the Study
- 52% of managers identify complexity as the biggest obstacle in security operations.
- 80% feel pressured to reduce security costs, and 41% admit that fragmentation increases the cost of acquiring technology.
- 4 out of 5 organizations that have not adopted platformization struggle to manage the overwhelming number of threats effectively.
- 80% of platformized organizations have full visibility into potential vulnerabilities and threats.
- Organizations adopting platformization reduced the Mean Time to Identify (MTTI) and Mean Time to Contain (MTTC) incidents by 72 and 84 days, respectively.
AI and Digital Transformation Powered by Platformization
The report emphasizes that effective security requires platformization. Consolidating tools into a single platform not only strengthens security postures but also enables companies to achieve nearly 4x better Return on Investment (ROI), driving revenue growth and operational efficiency.
In the context of AI, platformization allows for better data analysis, generating actionable insights. 90% of surveyed leaders plan to scale, optimize, or innovate with AI within the next two years, making AI integration with platforms crucial for enhancing threat readiness.
Methodology
The IBM IBV study, conducted in collaboration with Oxford Economics, surveyed 1,000 executives from 21 industries across 18 countries between July and September 2024.
