Escalating IT expenditure in response to advancing cyber threats, as reported by Crowdstrike
A recent survey, commissioned by CrowdStrike and conducted by Vanson Bourne, has shed light on the evolving cybersecurity landscape in the wake of the COVID-19 pandemic. The report, which polled 2,200 senior-level IT decision makers and IT security experts across various countries, reveals a significant rise in ransomware attacks and the accelerated adoption of digital transformation strategies.
According to the findings, about 56% of the surveyed companies have experienced a ransomware attack over the past 12 months. On average, these companies paid $1.1 million as ransom to get information released. This underscores the growing threat of ransomware and the need for robust cybersecurity measures.
The report also predicts similar threat risks, warning about the growth of ransomware and the increased use of phishing, business email compromise, and malware attacks. Gartner, in a June report, had issued a similar warning, highlighting the increased vulnerabilities that the pandemic has brought about.
In response to these threats, companies are boosting their spending. Companies that have migrated to the cloud have performed better in the current environment, according to Crowdstrike. On average, these companies have spent about $4.9 million over the period. The statement from CrowdStrike officials suggests that the proliferation of work from anywhere business models is a driving factor in the migration to the cloud.
The migration to the cloud is now a necessity for corporate survival and effectively supporting the remote workforce, the officials added. About 84% of organizations have accelerated their digital transformation efforts during the pandemic. A majority of companies (61%) have spent more than $1 million on digital transformation over the last three years.
However, the report also reveals vulnerabilities. Legacy systems like firewalls and antivirus software have been found insufficient during the pandemic. Vulnerabilities such as employees bringing their devices to the network or operating with home Wi-Fi networks are exposing the company to malicious attacks.
The survey did not provide information about the specific industries or sizes of the companies involved. It did, however, show that about 90% of companies have spent at least $100,000 to adapt to the particular security challenges posed by COVID-19. About 18% of Gartner's customers plan to adjust their security budgets mid-cycle in response to significant changes in their business.
Moreover, about two-thirds of companies have invested in digital security tools and/or increased the use of cloud technologies. The survey shows that attacks on companies are often motivated by access to customer data, valuable financial information, or intellectual property.
The interviews for the report were conducted in August and September, 2020. Approximately 89% of respondents expressed concern that international rivalries between countries could increase the risk of an attack. The survey, therefore, underscores the urgent need for companies to strengthen their cybersecurity defences in these challenging times.
For instance, Data I/O, a company that has adapted to the challenges posed by the COVID-19 pandemic environment, reported spending about $180,000 in Q3 2025 for cybersecurity incident remediation, including adapting its security measures in response to these challenges.
In conclusion, the report highlights the increasing threats posed by ransomware and the need for companies to boost their cybersecurity spending. It also underscores the benefits of digital transformation and the migration to the cloud in supporting remote workforces. However, it also reveals vulnerabilities that companies need to address to stay secure in these challenging times.
