SIEM Spending to Exceed $6.4 Billion by 2027

SIEM Spending to Exceed $6.4 Billion by 2027
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Total business spending on SIEM (Security Identity & Event Management) will exceed $6.4 billion globally by 2027, from just over $4.4 billion in 2022, according to a new study from Juniper Research. The study predicts that this growth of 45% will be driven by the transition from term license (where businesses can use SIEM for specific license lengths) to more flexible SaaS (Software-as-a-Service) models (where SIEM solutions are purchased via monthly subscription). This will enable small businesses to access previously unaffordable services.

The research identified the world’s leading SIEM providers by evaluating their offerings, and the key factors that have led to their respective success, such as the breadth and depth of their platforms. The top 3 vendors are IBM, Rapid7, and Splunk. “Juniper Research has ranked IBM as leading in the global SIEM market, based on its highly successful analytics platform and its ease of integration. SIEM vendors aiming to compete must design scalable solutions that are accessible to smaller businesses, which can provide easy-to-understand, actionable insights for less experienced cybersecurity teams,“ explained research co-author Nick Maynard.

Additionally, the research found that SaaS business models within SIEM are gaining traction; accounting for almost 73% of global business spending on SIEM in 2027, from only 37% in 2022. This significant increase represents an opportunity for newer vendors to break into the market with appealing SaaS-based models, but SIEM vendors must be careful not to leave larger enterprises, which still prefer term licenses, behind.