Data Shows Tech Companies Are Growing Bigger By Investing Large Revenue In Cybersecurity Sectors

In August 2021, the leading people of the top five technology companies, Google (AKA Alphabet), Apple, Facebook (AKA Meta), Amazon and Microsoft (GAFAM), met the president of the US, Joe Biden, to discuss things regarding the ongoing cybersecurity problems and guaranteed to put money in this department to strengthen US cybersecurity. According to the information gathered by CB insights, these tech companies invested $2.4 billion in funds and purchasing of cybersecurity companies collectively, along with providing 250,000 new jobs and cybersecurity training and skills. However, fully purchasing a company is very unlikely in this sector. Since 2016, the GAFAM corporations were only able to purchase just 17 companies, with Microsoft buying eight and Amazon buying four companies, leading the other tech companies.

On March 8, Google revealed that it is about to be acquiring Mandiant, a cybersecurity firm for $5.4 billion in order to protect its cloud customers. Along with being Google’s second-largest acquisition, it is going to be one of the greatest acquisitions made by the Big Tech in the department of cybersecurity. GAFAM had recognized it long before that this cyber security was worth putting money into, but in 2021, it was seen to be making significantly large amounts of investments in this department.

Initially, cloud security and the constant expansion of the Internet of Things appears to be the topmost priority of technology users nowadays. This has been a big problem since some of the companies adopted remote/hybrid working models that give you more privilege and flexibility, but along with that it also weakens the basic structure of cybersecurity as more attack points become visible to hackers. As per Cybercrime Magazine, in just 2021, the average cost of reported cyber attacks increased up to $6 trillion and till 2025 it is expected to rise over $10 trillion.

H/T: Statista.

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