UK Firms’ IT Security Spending Tops $3 Billion in 2011

UK businesses are expected to spend more than £3 billion on IT security, a new report released by PricewaterhouseCoopers (PwC) claims.

The company said that businesses were concerned over the security shortcomings of cloud computing, the use of mobile phones at work places and the increase in cyber-attacks and were increasing their spending for protecting themselves against these threats.

According to the PwC, the total amount of mergers and acquisitions in the security market topped £22 billion in the last three years alone. In the first half of 2011, 37 acquisitions had been made, worth more than £10 billion.

The total security market is worth £60 billion and is expected to rise by 10 per cent every year in the next three years.

"Deal activity in cyber security is expected to continue to grow given the fragmentation of the market and the attractive growth outlook," said Barry Jaber, PwC's security Industry Leader reports CBR.

"Technology and IT companies are making acquisitions to differentiate their offerings while defence firms continue to do deals to diversify away from shrinking defence budgets," he added.

The report also listed some of the largest security mergers and acquisitions done this year including the $7.8 billion acquisition of McAfee by Intel.