Cyber Security: Is It a Smart Investment?
By Tom Seest
At BestCybersecurityNews, we help young learners and seniors learn more about cybersecurity.
Cyber security is an emerging and important sector that provides investors with the chance to diversify their portfolios. Additionally, it can reduce the risk of individual company share prices experiencing large fluctuations.
Cybersecurity is a multi-faceted field that necessitates management to assess, monitor, and maintain an organization’s security posture. This involves investments such as threat detection, detection, and response (TDIRS) as well as security analytics.
Table Of Contents
- Ready to Invest in Palo Alto Networks (PANW)? Here’s What You Need to Know!
- Is Investing in Microsoft (MSFT) a Smart Move for Cyber Security?
- Is Zscaler (ZS) the Best Cyber Security Stock to Invest In?
- Is Investing in IBM (IBM) a Smart Cyber Security Move?
- Is Investing in Cisco Systems (CSCO) the Right Move for Your Cyber Security Portfolio?
Cybersecurity is one of the world’s most critical industries, and investing in a company that specializes in cybersecurity can yield great returns for investors. Palo Alto Networks (NASDAQ: PANW), for example, is one such leader with an impressive track record for growth and profitability.
The company provides network security solutions and cloud services for customers around the world, including firewalls, endpoint protection, and threat intelligence. Furthermore, they offer cybersecurity consulting and training courses.
Established in 2005, Palo Alto Networks has earned a well-deserved reputation for offering reliable solutions to its customers. Their technology protects against cyberattacks while enabling companies to embrace digital transformation initiatives without disrupting their operations.
Though the cyber security industry has experienced recent challenges, PANW has experienced strong revenue and profit growth. Furthermore, its positive cash flow and strong balance sheet enable it to reinvest in the company’s future development and expansion.
The company is a leader in cyber security and boasts an impressive customer base across all industry sectors. Furthermore, its platform provides security operations centers with automation-first solutions to drastically enhance security outcomes.
For instance, the company’s Cortex XDR platform utilizes endpoint, network, and cloud data to protect customers against sophisticated attacks through AI and analytics. Furthermore, its Swiss infrastructure helps customers meet their data residency obligations while speeding up their SOC transformation.
Due to the ever-increasing variety and sophistication of cyber threats, businesses must invest in cybersecurity solutions. Palo Alto Networks stands as a prime beneficiary with its diverse product and service offering that should guarantee it remains an industry leader for years to come.
As the world moves toward the cloud, cybersecurity has become a top priority for businesses. Microsoft has invested billions of dollars into cybersecurity research and acquisitions over the last several years.
In 2022, Microsoft assisted the Ukrainian government in identifying a Russian-linked “wiper malware” attack targeting ministries and financial institutions. Furthermore, it created the Asia Pacific Public Sector Cyber Security Executive Council–an alliance between policymakers from government and state agencies with technology and industry leaders to foster collaboration and best practices for combatting cyber threats across the region.
Microsoft’s efforts will enable it to create a strong platform for its future security offerings. By 2022, the company expects to generate over $10 billion in security revenue – up from $5 billion in fiscal year 2020.
However, cybersecurity is an ever-evolving business and necessitates constant innovation. That’s why investing in a security company that regularly updates its technologies and enhances services to combat new threats is so important.
Microsoft (MSFT) is one of the world’s most successful cyber companies, offering a comprehensive suite of solutions to protect businesses against threats. The tech giant boasts an impressive customer base and provides security products for endpoint devices, email, and cloud platforms alike.
Additionally, it has an experienced cybersecurity policy team that collaborates with governments and policymakers to promote a safer online environment. Specifically, this team offers strategic advice, assesses the consequences of laws and policies, sets examples through example leadership, and conducts ground-breaking research.
The company also provides cloud services to businesses to manage data and distribute applications on any device. These cloud solutions are increasingly important as more organizations transition towards remote work and the 5G network.
Zscaler (ZS) provides cloud security solutions that protect companies’ network connections from cybercrimes like ransomware and phishing attempts. Their services also include malware prevention and data loss prevention (DLP).
Over the past several years, cybersecurity has become one of the most contentious areas in technology. With the growth of cloud and remote working technologies, there has been an uptick in demand for modern security products that can protect businesses against malicious activity.
Zero Trust Exchange is a platform developed by the company that acts as an intelligent switchboard for user-to-app, app-to-app, and machine-to-machine communications. With 150 data centers around the world, it helps customers secure their connections and prevent unauthorized access or data loss.
Zscaler is a leading Zero Trust provider with strong connections to enterprise customers. These partnerships enable them to sell their core Zero Trust products on an individual and per-workload basis, making their sales efforts more efficient.
Recently, they unveiled their Workloads product to provide enterprise-grade protection of workloads in the cloud. This enables companies to utilize Zero Trust Exchange encryption on all users’ traffic, shielding them from malicious attacks.
Zscaler has an exciting opportunity to expand into the workload and IoT markets, which will expand its addressable market. Additionally, they restructured their sales strategy to target smaller enterprises, enabling them to scale faster. Since focusing on small businesses again, Zscaler is now adding approximately 1,100 customers annually.
If you’re searching for an excellent cybersecurity company to invest in, IBM (IBM) is your best bet. They provide a vast array of computer software and hardware, as well as technology and business services like cloud computing and data analytics.
Though much of its operations remain in hardware sales, the company has expanded into other sectors, such as management consulting and IT outsourcing. This latter activity has become an integral component of their business model – one which continues to expand.
In 2011, IBM unveiled SmartCloud, a software-as-a-service (SaaS) offering that competes with Amazon Web Services and Microsoft Azure. In 2013, the company acquired SoftLayer Technologies, an infrastructure as a service provider. In 2016, IBM Cloud merged SoftLayer with Bluemix, its platform-as-a-service offering, to form IBM Cloud.
Cybersecurity is becoming an increasing concern across industries, leaving organizations in those sectors particularly vulnerable to attacks. According to IBM Security X-Force, cyberattacks against energy companies quadrupled from last year while manufacturers experienced more ransomware incidents than any other sector.
To prevent such an occurrence, it is essential to take a proactive approach to cybersecurity. This includes informing employees about the significance of security, conducting regular vulnerability testing, and staying abreast of best practices.
Maintaining an up-to-date understanding of cybersecurity news and trends is essential for making informed decisions about which cybersecurity companies might make good investments for your portfolio.
Additionally, it’s essential to assess the company’s future. For instance, if they have experienced recent turmoil, investing may not be wise. On the contrary, if they plan on expanding their business operations, investing could prove worthwhile.
Cisco (CSCO) designs and manufactures networking equipment, security software, and data center systems. It sells its products across North America, Europe, Asia Pacific, Japan and China. Its major product lines include switches, routers, wireless network management interfaces/modules, optical network access points, and outdoor/industrial access points.
Cisco holds a dominant market position in networking and is widely recognized for its products’ reliability and performance. Its network gear can be found running the majority of corporate and telecom networks around the world.
The company provides cloud computing and video conferencing platforms. Its Webex conference-room platform, which competes with Microsoft (MSFT) and Zoom Video Communications (ZM), represents a key growth opportunity.
Cisco and Arista Networks (ANET) are expected to gain from the growing popularity of artificial intelligence software, which requires more computer resources and network bandwidth. Cisco is expected to continue investing in companies within this space.
Analysts anticipate CSCO stock to appreciate in value over time due to the strong growth of AI applications, particularly within enterprise and telecom industries. Furthermore, analysts anticipate demand for cloud-based security solutions will increase as more internet-connected devices become prevalent in the future.
Cisco is forecasted to increase its revenue and earnings in the coming years. Furthermore, the company intends to return more of its profits to shareholders, which could eventually lead to an increase in share price over time.
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