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Security Expected To Take A Larger Bite Out Of IT Budgets

Spending on security-related technology is expected to increase over the next couple of years, leveling off at 5 percent to 8 percent of the IT budget of global 2000 companies, a market-research firm said Monday.

Security spending takes up from 3 percent to 4 percent of IT budgets today, the Meta Group said in a report on calculating information-security spending. That amount, however, is expected to increases at a compound annual growth rate of between 8 percent and 10 percent through 2006, before reaching a plateau.

In general, information security doesn't have metrics for return on investment that's been adopted across industries.

A chief financial officer typically defines ROI as dollars spent balanced by additional revenue or accrued profit, but "security doesn't generate revenue or improve profits in a predictable manner," Meta analyst Chris Byrnes said.

Therefore, Meta recommends that companies look to best practices in their industry as a way to determine how much they should spend as a percentage of their IT budgets.

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