Author: Rajesh Muru

Rajesh is a Principle Analyst covering Cyber Security, Network Services and Digital Transformation. His work entails engaging with global vendors, service providers and end users, and providing valuable strategic advise on these given markets. His particular interests include next generation converged/digitised eco-systems, encompassing IoT, Blockchain, big data and AI, and the role security plays within that. Rajesh is a seasoned professional with over 28 years experience working in Strategy within the IT and Telecoms sector.

Positioning Considerations for Cybersecurity Providers Targeting the Energy Sector

January 18, 2024 by Rajesh Muru, posted in Big Data, Cloud Enable, IT Leader, Secure

Summary Bullets:

• The energy sector is complex with a highly interconnected ecosystem. This will impact client organizations’ security posture, often influenced by the inherent nature of their infrastructure.

• Cybersecurity providers, and in particular managed security companies, will need an ‘integrated’ approach to security addressing the energy sector value chain.

Cybersecurity Providers Should Factor in Energy Sector Future Economic Challenges
From a market performance perspective, 2023 continued to be a difficult year for the world’s energy market, with some analysts speculating it to be one of the worst sectors in terms of crises resulting in a cascaded impact effect both economically, globally, and socially. The United Nations Framework Convention on Climate Change (UNFCCC) and the Conference of the Parties to the Convention (COP) continue to strive in ambition and responsibilities as well as identify and assess climate measures. In addition to progressing toward the existing Paris goals, COP28 in Dubai (UAE) gained agreement on a number of areas, covering fast-tracking the move to clean energy sources, cutting greenhouse gas emissions before 2030, delivering money for climate action from richer to poorer countries, and working on a new deal for developing nations.

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Telecom Wholesale: Strategic Cloud Options for Consideration

October 24, 2023 by Rajesh Muru, posted in Cloud Enable, Internet of Things, IT Leader, Secure

Summary Bullets:

• Incumbent wholesalers should develop a robust cloud architecture framework to deliver future wholesale services, utilizing carriers’ unique capabilities in owning the network.

• Incumbent wholesalers must develop an underlying strategy for cloud that is interlinked across the different business units – promotes greater agility to operate effectively in future ecosystems.

Focus on Agility, Simplicity, and Automation in the Context of Cloud
GlobalData’s discussions during the 2022-2023 period with leading wholesale providers continue to highlight agility, simplicity, and automation as being key in the development of future products and services. Wholesale customers continue to demand the flexibility and agility to scale up/down their capacity, order their services online, pick and choose the required services, and have access to on-demand/pay-as-you-go billing models. Wholesale providers continue to become platform-centric with open application programming interfaces (APIs) and greater automation – artificial intelligence (AI) will play a key role here in the future.

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Strategic Considerations for Leading European MSSPs Addressing the SMB Segment

September 29, 2023 by Rajesh Muru, posted in Secure

Summary Bullets:

• With a market value of $20.32 billion in 2027, the SMB cybersecurity market in Western, Central, and Eastern Europe is worth pursuing, and businesses are underserved.

• Leading Western MSSPs will require investment to redefine their propositions for the SMB segment, utilizing a high-touch, asset-lite, automated proposition.

The Western, Central, and Eastern European SMB Segment is Worth Pursuing
According to GlobalData, total cybersecurity revenues for Western, Central, and Eastern Europe for the small and medium-sized business (SMB) segment (0-249 employees) will reach $20.32 billion in 2027 with a CAGR of 13.3%, whereas the large business segment (250+ employees) will generate $38.37 billion with a CAGR of 11.24%. At a high level, these revenue forecast projections are indicative of SMBs being an important segment for cybersecurity. Consequently, cybersecurity providers, including large tier one and two players as well as local smaller players, are all attempting to pursue opportunities in the SMB segment. However, the downside is that the SMB segment, like the corporate segment, has been suffering as a result of the global economic slowdown, resulting in tighter spending on enterprise ICT and IT. But there is some hope with incremental falling inflation in countries like the UK, influencing business confidence in 2024.

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Gulf States Investment in European Telcos Accelerates

September 22, 2023 by Rajesh Muru, posted in Communicate, IT Leader, Network, Secure

Summary Bullets:

• Gulf states funds will continue to invest in European telcos, fueled by strong regional growth and large cash reserves.

• Gulf investment in European telcos will promote greater collaboration on innovation between Gulf-based and European telcos that are funded by the same fund entities.

Increased Investment in European Telco by Gulf States Investment Funds
Overall, mergers and acquisitions (M&A) activity in the technology, media, and telecom (TMT) segment has been increasing since 2018, but the trend reversed in 2022. Total global M&A deal value dropped 39% in 2022 to $754 billion, compared to $1.1 trillion in the previous year. Deal volume reached 612 deals in 2022, down 39% from 2021.

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Telcos Will Face Market Uncertainty as They Progress Toward 2030

July 25, 2023 by Rajesh Muru, posted in Cloud Enable, Communicate, Internet of Things, Network, Secure

Summary Bullets:

• Advancements in technology place telcos in good footing to innovate, as majority of telcos re-engineer operationally, capitalize on their core network strengths, and rationalize portfolio.

• Future telco success will be hampered by the global economic climate (particularly inflation), rising energy costs, increased regulatory pressures, and increased direct and indirect (cloud providers) competition.

Telcos growth ambitions (through a transitioned operationally agile innovative business) will experience several external threats
As 2030 approaches, there is much discussion within the telecommunications industry surrounding how telcos will evolve. Several influencing factors include the maturity of digitalization in consumer and enterprise settings, which potentially could be further accelerated by artificial intelligence (AI), including generative AI. In addition, maturity of cloud and edge computing will continue to spur innovation as telcos further identify industry use cases. However, it will not be clear sailing for telcos.

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Cybersecurity Providers Should Plan for Portfolio Expansion to Counter Future Attacks on AI

June 15, 2023 by Rajesh Muru, posted in IT Leader, Secure

Summary Bullets:

• Cybersecurity providers will be expected to drive thought leadership in various regulatory bodies to address future cyberattacks on AI.

• Innovation in R&D will entail encryption and validation of AI/ML models through XDR as well as close integration of AI/ML models to SIEM and SOAR.

AI will Demonstrate Strong Growth Across Multiple Consumer and Vertical Settings
It’s pleasing to see artificial intelligence (AI) finally overcome many historic challenges around computing power and commercial implementation. And recent advances around the improvement of algorithms (e.g., Google’s AlphaGo, OpenAI’s GPT-3) as well as increasing computing power have accelerated AI across a number of potential applications and use cases. Use cases stem across automotive (e.g., computer vision and conversational platforms), consumer electronics (e.g., implementing virtual assistants, authentication via facial recognition – i.e., Apple’s FaceID), and ecommerce and retail (e.g., voice-enabled shopping assistants, personalized shop). Accordingly, based on GlobalData forecasts, the total AI market is demonstrating strong growth (includes software, hardware, and services) and will be worth $383.3 billion in 2030, having grown at a compound annual growth rate (CAGR) of 21.4% from $81.3 billion in 2022. As a result, many of these use cases will be across a number of consumer and business application settings.

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Telecom Wholesalers will Require an Underlying Strategy for AI

May 1, 2023 by Rajesh Muru, posted in Big Data, Cloud Enable, IT Leader, Network

Summary Bullets:

• The telecom wholesale segment is behind the AI implementation curve, and companies need to do more by embracing innovation – i.e., exploiting opportunities for generative AI.

• Success for telecom wholesalers will entail developing an underlying AI strategy across the portfolio and company in a connected manner.

Telecom Wholesale Trends in 2023
GlobalData’s discussions over the last year with global leading telecom wholesale providers highlights a commonality in strategy among telecom providers selling wholesale connectivity, both in terms of strategic vision and in the products and services they offer. Where companies differ is influenced by the nature of the core networks that support products and services, global geographical reach, and strength of product/service brand (e.g., antifraud solutions, mobile roaming), and lastly partnerships.

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Does Broadcom’s Acquisition of VMware Create an Unfair Playing Field?

March 30, 2023March 30, 2023 by Rajesh Muru, posted in Cloud Enable, IT Leader

Summary Bullets:

• The proposed Broadcom and VMware deal could create a conglomerate effect in the server virtualization market.

• The uncertainty of the deal will impact customers on their decisions on current and future VMware investments, resulting in some customers switching to competitors.

Broadcom has a Checkered M&A History
GlobalData previously provided commentary questioning if Broadcom had the right profile, but more importantly, the right pedigree to be the company acquiring VMware. After all this is one of the largest potential acquisitions resulting in VMware being acquired by Broadcom for approximately $61 billion in a cash-and-stock transaction, together with VMware’s net debt of $8 billion.

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Cybersecurity Providers Must Approach 2023 with Product Simplicity and Consolidation in Mind

March 29, 2023 by Rajesh Muru, posted in Secure

Summary Bullets:

• Vendors with wider portfolio and high growth product suites should focus on enterprise portfolio consolidation, with strong supporting business case.

• Vendors must factor in their revenue projections longer sales cycles and project delays on more complex cybersecurity deals in 2023.

Enterprise Trends:
As 2023 progresses, enterprises continue to face tough economic conditions. This year has already witnessed mass layoffs in technology and other sectors as organizations look to cut costs and streamline operations ahead of what is expected to be major reductions in consumer and corporate spending. IT budgets are expected to suffer as planned projects get shelved and executives reassess priorities.

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2023 Update on Cybersecurity Investment Trends and Considerations for Investors

March 1, 2023 by Rajesh Muru, posted in IT Leader, Network, Secure

Summary Bullets:

• Mergers and acquisitions (M&A) in cybersecurity continues to cause uncertainty in the investment community, but latest Q4 2022 projections show investments have picked up.

• Success for investors will entail investing in the right cybersecurity technology segments and ensuring investors back companies that are visionaries and have strong customer alignment.

Cybersecurity Revenues Remain High, but Investment Reservations Exist
GlobalData’s deals database highlights that in value, cybersecurity deal activity decreased previously by 98% in Q3 2022 compared to the Q3 2021 total of $7.7 billion. Similarly, deal volume also remained flat in Q3 2022, compared to Q3 2021, and was even lower by 33% in the same quarter in 2021. These trends indicate that although revenues among cybersecurity companies remain positive, there are still investment reservations in cybersecurity due to the unsettling economic climate and a possibility that cybersecurity stocks could follow in a similar fashion to tech stocks.

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