The Great IT Security Paradox

On average, the total cost of an IT security breach is closing in on a million dollars. Although large companies have more at stake than smaller ones, fixing the breach only accounts for about 15 percent of the total cost, according to the findings of new survey conducted by Vanson Bourne on behalf of NTT Communications. Based on a poll of 1,000 business decision-makers, the study shows that legal fees, fines and compensating customers and suppliers for losses make up the vast majority of the costs incurred when an IT security breach occurs. For IT solution providers across the channel, that means the cost of contracting their security services is generally still a fraction of what's at risk. However, the challenge is that even though most executives expect security breaches at their companies, the majority still felt their data was secure. Unfortunately, that paradox often makes it difficult to sell additional security services until well after a prospective customer has already been victimized. Channel Insider looks at key findings from the NTT Communications research.