IBM and Palo Alto Networks Find Platformization is Key to Reduce Cybersecurity Complexity

Dubai, UAE – A new global study conducted by the IBM Institute for Business Value (IBV) in collaboration with Palo Alto Networks reveals that organizations are grappling with significant cybersecurity complexity, managing an average of 83 different security solutions from 29 vendors. The research, titled “Capturing the Cybersecurity Dividend: How Security Platforms Generate Business Value,” highlights that 70% of companies with a high degree of security platformization report improved business outcomes, including operational efficiencies and revenue growth.

The study, which surveyed 1,000 executives across 21 industries and 18 countries, found that 52% of respondents believe the fragmentation of security solutions is hindering their ability to effectively combat cyber threats. However, 75% of organizations adopting a platformized security approach agree that better integration across security, hybrid cloud, AI, and other technology platforms is critical to their success.

Cybersecurity Complexity: A Growing Challenge
As digital interconnectedness expands, so do attack surfaces and vulnerabilities. Cyberattacks are becoming increasingly sophisticated, with both defenders and attackers leveraging AI, creating a race to enhance cybersecurity capabilities. The study estimates that security fragmentation and complexity cost organizations an average of 5% of their annual revenue. For a company generating $20 billion annually, this translates to a staggering $1 billion in losses due to security incidents, lost productivity, and reputational damage.

Mark Hughes, Global Managing Partner for Cybersecurity Services at IBM, emphasized the dual challenge organizations face: “Updating security postures to address new threats while reducing complexity and costs. Security executives must enable innovation, protect assets, and derive value from cybersecurity investments to drive business goals.”

The Platformization Advantage
The research underscores the benefits of consolidating multiple security tools into a unified platform. Organizations adopting this approach report nearly four times better return on investment (ROI) from their cybersecurity initiatives. Platformized organizations also experience significantly shorter mean time to identify (MTTI) and mean time to contain (MTTC) security incidents—72 and 84 days faster, respectively, compared to non-platformized peers.

Karim Temsamani, President of Next Generation Security at Palo Alto Networks, highlighted the importance of partnerships in today’s AI-driven world: “Platformization delivers value, operational efficiency, and security. IBM and Palo Alto Networks are aligned in creating better outcomes for our customers, enabling them to thrive in the future.”

Key Insights from the Study:

• 52% of executives cite complexity as the biggest impediment to cybersecurity operations.
• 80% face pressure to reduce security costs, with 41% noting that fragmentation has driven up procurement expenses.
• 80% of platformized organizations have full visibility into potential vulnerabilities and threats.
• 90% of executives plan to scale, optimize, or innovate with AI within the next two years, making platformization critical for integrating AI capabilities.

Tips for Successful Platformization:

1. Evaluate Partnerships: Streamline security missions by critically assessing current and potential technology partners.
2. Conduct Incident Response Drills: Use unified platforms to identify areas for improvement and enhance response capabilities.
3. Leverage Cyber Ranges: Prepare teams for emerging threats through immersive, organization-wide training. IBM and Palo Alto Networks now offer a joint Cyber Range experience in Cambridge, Massachusetts, to support continuous improvement and transformation.

Additional Resources:

• Learn more about IBM’s partnership with Palo Alto Networks: www.ibm.com/consulting/palo-alto
• Explore Palo Alto Networks’ perspectives on platformization: paloaltonetworks.com/resources/research/ibm-study-platforms-deliver-value

Study Methodology:
The IBM IBV research, conducted with Oxford Economics and published in partnership with Palo Alto Networks, surveyed executives from July to September 2024. The study analyzed data to create a “platformization index,” measuring the relationship between security platformization and business outcomes.

For more insights, visit the IBM Institute for Business Value at www.ibm.com/ibv