Solid growth in uncertain times

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Solid growth in uncertain times


The number of cyber attacks continues to increase. Companies that offer appropriate security software could therefore grow vigorously in the long term – and bring investors nice returns.


The latest figures from the Federal Criminal Police Office also show that cyber attacks are on the rise.


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The latest figures from the Federal Criminal Police Office also show that cyber attacks are on the rise.


What has only interested managing directors and system administrators for years now concerns us all. Since the home office has become the new normal and more and more people prefer to work at home regardless of lockdown and curfew, IT security begins on the sofa at home. It is not uncommon for employees in the home office to use their own laptop or private smartphone. Owing to Vulnerabilities can be a problem and offer hackers a gateway. F-Secure experts report that email is the most common way of spreading malware. If a user opens such attachments, a system that is not optimally protected is quickly infected. In the home office in particular, there are no colleagues to help users in doubt strange mails be able to interview – this increases the chance for attackers and the danger for the company.

But not only employees working from home are a potential security risk, the trend towards the Internet of Things also harbors dangers. As the Cybersicherheitsunternehmen Beyond Trust Predicted years ago, connected devices will become the most popular target for hackers. Smart speakers, intelligent lightbulbs or sockets that can be switched via WLAN – all of these devices can be a threat to the network in your own four walls.

More and more cyber attacks require increasing investments

While the flashing ceiling light in the bedroom at home is still the smallest problem, the danger of hacker attacks on networked devices becomes all the more apparent when we think of terms like Industry 4.0 or autonomous driving. Classic industry is already increasingly networked today. This trend should continue and soon reach other areas of the production and supply chains. If everything runs smoothly, companies can look forward to cost advantages and increased efficiency. If, however, sand gets into the gears in the form of malware or tangible hacker attacks, there is a risk of downtime, loss of production and damage to reputation.

The latest figures from the Federal Criminal Police Office also show that cyber attacks are on the rise: the authority has Over 100,500 cybercrime-related acts in 2019 recorded and refers to an increase of 15 percent over the previous year. In view of the expected high number of unreported cases, this is a worrying development. But the companies have recognized the situation and are investing in their IT systems despite the stresses related to Corona. As the industry association Bitkom reports, they should Expenditures for IT security in Germany will grow by 5.6 percent in 2020. The industry could even face almost double-digit growth in 2021.

IT security titles cannot be compared with Tesla and Co.

In view of the start of the 5G mobile communications standard and the general trend towards digitization, which does not leave out any branch of industry and is also turning the service sector upside down, investors can also rely on IT security as a solid future technology. The market has been growing solidly for years and is picking up speed. In addition, current developments, such as the trend towards more home work, are generating additional growth. Companies like Palo Alto Networks or Cyberark are often the first point of contact for companies when it comes to securing IT infrastructure and reacting to new threats. Although stocks have so far not been able to keep up with tech giants such as Tesla, Amazon or PayPal in terms of their return, the values ​​can stabilize a portfolio and ensure constant long-term returns.

Please note that Disclaimer of liability.

Dr. Marcus C. Zschaber is the founder of VMZ Vermögensverwaltungsgesellschaft. For t3n, the multi-award-winning portfolio manager analyzes the stock market prospects for the technology and digitization industry as well as other megatrends of the 21st century.

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