The Secret to Cybersecurity: How Automation is Quietly Transforming the Industry

Cyber Security Investing
Security Investing

Oppenheimer analyst Shaul Eyal shares his views on the cybersecurity market.

When we last left off with analyst Shaul Eyal, managing director at Oppenheimer, he touched upon all of the buzzwords in cybersecurity. The mobile revolution, rise of big data and increasing prevalence of analytics were just a few of the major trends he saw developing in the field.
However, being a buzzword is both a blessing and a curse in today’s tech market. Media hype can generate investor interest, push up valuations, and help the best technology market rise to the top. On the flip side, it can led to a bubble which, when it bursts, scares investors away from a once promising market.
To avoid the vagaries of a hype market, we probed Eyal about the secret trends emerging in the cybersecurity market – those developments which are leading the pack in terms of technology and management, but haven’t received a comisurate degree of media attention. Essentially, we asked him what cybersecurity experts themselves were investing in.
Well, the secret is out. According to Eyal, automation one of the biggest trends in cybersecurity, and nobody is talking about it.

Behind the scenes impact: automation leads the pack

Cybersecurity technology has got to the point where it can detect all sorts of threats from varying angles. However, despite the advanced nature of this technology, it can be difficult to put the information into action and act on this data. That’s because the industry itself is quite fragmented. There are a lot of different specialists developing technology in all aspects of the field but, right now, there is no easy to use, single platform that integrates all of this information.
“God bless the system administrators that come in on a daily basis, sit at their terminals, and see all of the faults and red lights at their station terminals,” says Eyal. This on the ground job is one of the most challenging in the sector, because these system administrators have to make immediate, often contradicting calls, about which threat is the most pressing at a specific moment in time.

Eyal has spent much time with these professionals and “frequently, they say that if someone can come up with an automation system that prioritizes which threats to look at first,” it would transform their experience of cybersecurity. Such a platform would “need to prioritize what [IT professionals] test or check first.” Not only would this streamline their job, it would make them more effective defenders against cyber attack and save their companies money with efficiency.
Therefore, while automation is one of “the least sexy aspects of cybersecurity,” this “behind the scenes need” is “highly mission critical.” Wise investors then, should cover their bases. Big data, analytics, and the mobile revolution will surely lead the pack in terms of flashy cybersecurity innovation. However, it seems like automation will be making a much less hyped, although no less significant, progression. Long term, this could pan out to be one of the strongest niches for investment in the market.
To find out more about the cybersecurity market, stay tuned for more expert insights into the biggest trends and hottest companies to watch. Also, if you have specific questions for our analysts, give us a shout – either in the comments below, or on twitter at @INN_Technology.
Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.

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