The Band-Aid Effect: From Threats to Opportunities

In the midst of a revolution in the way we conceive, create and apply information in the form of digital data, the potential benefits are colossal. Nevertheless, this discussion has encountered the inevitable, increasingly so in recent years, as the pervasiveness of data has been met with issues particularly surrounding security. Reports from Goldman Sachs demonstrate a trend indicating a more than likely increase in spending on cyber-security in the coming year. But what is truly notable here is a fascinating correlation—the correlation between the jump in share value of cyber-security companies in the past few years and the steady increase in the quantity of cyber-attacks during a similar period. What we know so far from our observations of the trends tell us this much:

1.    The pervasiveness of data is increasing rapidly

2.    The pervasiveness of cyber-attacks is steadily increasing

3.    Opportunities are increasingly presenting themselves for effective data security solutions

Much like the field of medicine, medication and treatments must rapidly adapt to keep up with or stay ahead of the biological adaptation of viruses, diseases, and general ailments that may inflict damage upon the human body. The pharmaceutical industry, among other industries that intend to provide solutions for the human body, has found such a niche in the constant and continuous necessity for adaptation in this field. The relationship here is quite simple: the more cuts there are, the more band-aids you buy. And naturally, you are likely to bring a more comprehensive first-aid kit to a football game than to a golf tournament. We will call it "the band-aid effect". Ultimately, increased sensitivity to damage or injury in any context warrants greater precaution, prevention, and proactive behavior. Issues always precede opportunity, and challenges breed demand for solutions. However, in this case, a robust and dynamic data environment is in a state of constant expansion, and in perpetual need of both protection and patchwork.

Think of the vast body of information that we call data as a single entity. As this quantity increases in its entirety, there is a subsequent increase in threats and vulnerability.

-       "Last year 3,014 data breach incidents occurred worldwide exposing 1.1 billion records, with 97% related to either hacking (83%) or fraud (14%)," Kostin [Goldman Sachs] said. "Both incidents and exposed records jumped by 25% during the last year."

We know that the way that we now create and consume data is not simply a trend; rather we have only scratched the tip of the iceberg. The sheer quantity and rates of growth of this quantity tell us that traditional modes of data storage are long gone, and cloud based storage (or some modification of it) is here to stay. With this shift, threats have already been well established, and many more are surely on the horizon. Thus, critically delving into the trends that might arise as outcomes of a new demand for security may provide some purely valuable insight. Based on the evidence at hand, expect to see the necessity of innovative, comprehensively secure solutions continuously on the rise and cashing in all the while.