Government-backed cyber security has a long way to go, warns Arctic Wolf
The boss of Arctic Wolf, one of the world’s biggest cybersecurity companies, has warned that governments need to invest in cybersecurity.
Nick Schneider spoke to CityAM ahead of the Labour government’s first Budget earlier this week.
Acknowledging the rise in demand for the sector, he argued: “Whilst it is encouraging that most governing bodies are looking to ensure that they have the mechanisms to protect critical infrastructure from cyber attacks…the majority of the sector remains driven by private sectors”.
As cyber threats have evolved with generative AI, the need for robust security measures has only become more critical.
While government interest in safeguarding infrastructure has also risen accordingly, Schneider said that much of the responsibility for individual protection has remained in the private security sector.
Arctic Wolf told City PM that this is an ongoing challenge, especially for smaller organisations which may lack extensive resources.
Schneider said this affects SMEs even more: “If you’re a massive organisation, you can implement whatever you need, but midsize and small organisations often have to balance against a range of budget items”.
However, governments are aware of the sector’s rising importance and the need to invest in it.
The UK government has launched a new cyber team competition designed to encourage the next generation to pursue careers in cyber security.
The UK has established global cyber companies such as BT and Sophos and various incubators to support early-stage companies in their growth and development.
With 50,000 employed in the sector across the UK, The King’s Speech introduced several initiatives scuch as a new Cyber Security and Resilience Bill to highlight the critical need for heightened cyber protection.
Yet, economic uncertainty complicates the allocation of resources for cyber defence, and the evolving threat landscape requires enhanced data protection laws and new guidelines for new generative AI technologies.
Growing demand for cyber security
To match this hike in demand, Arctic Wolf has focused on delivering multifaceted security solutions rather than general blanket resolutions.
Schneider argued that in the past, one cyber attack would lead to the rise of new solutions to counteract that very specific form of attack.
Yet today, the broader demand is for holistic platforms which cover multiple security aspects, rather than single-function tools as “customers aren’t looking for a quick fix to a new threat; they want a consistent partner to protect them across attack surfaces”, he said.
“We’re operating at a massive scale”, he continued. “Arctic Wolf processes seven trillion observations weekly, which feeds into better, more intuitive security outcomes for our customers”.
Gearing up for an IPO
Arctic Wolf’s potential IPO has been long discussed. The company is well-placed to go public when market conditions are favourable.
When Schneider spoke to City PM earlier this year, he said the firm had shelved its plans to go public until market conditions improve.
“We’ve been at public-ready scale for quite some time”, said Schneider, noting that the company is managing the balance of its strategic goals with the market landscape.
Tech IPOs have faced mixed receptions recently, so Arctic Wolf is keeping a close watch on next year, which Schneider said will be an active IPO window.
M&As are also on the firm’s radar, as it remains ‘opportunistic’ about potential acquisitions, especially in areas that complement its existing services.
Election-related cyber threats
As the US election nears, AW has anticipated an increase in politically motivated cyber attacks.
Phishing campaigns, disinformation and a mass circulation of fraudulent messages are all likely to ramp up.
Arctic Wolf stressed the importance of basic blocking and tackling practices like multifactor authentication and staff training to help companies and individuals prepare for a hike in these threats.
More importantly however, training workers on recognising phishing attacks and misinformation is vital during this period, helping to mitigate human error.
As Schneider argued, governments should talk about investing accordingly, as these trends increase amid geopolitical tensions.