Financial Services Lead Spend in $650m Software Security Industry

Financial Services is the leading spender in the $650 million software security industry, with fin tech firms using security as a business differentiator, Gary McGraw told delegate this morning.

Now that firms are aware of software security issues, they’re thinking about what to do about security holes and problems, he said.“Security is an explicit expectation in services,” he told SIFMA. “Spend on security software is about doubling every year now.”

What was $250 to $270 million in 2006, according to Yankee Group, clocked in at between $450 and $500million in 2007 and now is approaching $650million for 2008.

However, McGraw had a word of warning. Testing for security is key, but there isn’t a fail safe ‘what to know’ that a firm’s software is secure – the best a company can do I just test to know that it isn’t. This is a big issue the software industry is grappling with and lawyers have stepped in as liability is now a growing concern.