NEW DELHI: India born Jay Chaudhry, founder of California-based cybersecurity company Zscaler, climbed 577 spots in Harun Global Rich list of 2021 to become one of the top ten richest Indians, after his net worth rose 271% annually. His company’s revenue grew 10% sequentially and 55% annually to reach $157 million in Q2 FY21.
Chaudhary’s rise can be attributed to the pandemic driven digital rush that has seen companies across the world step up IT spending, particularly on cybersecurity.
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In the light of growing cases of cyberattacks trying to exploit any weak links in the remote working model, cybersecurity emerged as a high investment priority among both large and small organisations. It accounted for 26% of entire IT spending by SMEs in 2020, up from 23% on year. In large enterprises, the share grew to 29% in 2020 from 26% in 2019, as per Kaspersky.
Industry reports indicate that organisations are expect their cybersecurity budget to grow faster over the next few years. For instance, Gartner expects India to spend $362 million on cloud management and security services in 2021, an increase of 31.2% year-on-year. In 2020, spending grew 10%.
Similarly, Data Security Council of India (DSCI) expects global cybersecurity services market to grow 10% to reach $89 billion in 2022. In comparison, Indian cybcersecurity industry is expected to grow at an even higher 21% to reach $7.6 billion in 2022.
As per DSCI, the number of cybersecurity companies in India has also grown in last 1-2 years. Around 225 cybersecurity startups in India, generated revenue of $1 billion in 2020, up from $475 million generated in 2018.
In addition to private enterprises, entities in government sector are also expected to scale up IT spending this year. A recent report by Gartner, IT spending by India’s government sector is likely to grow annually at 9.4% amounting to $7.3 billion in 2021 as compared to $6.6 billion spent a year ago.
Apart from Zscaler, other security companies have also reported jump in revenue. For instance, US based McAfee reported a 14% annual increase in net revenue in fourth quarter of the fiscal year which ended December 2020. Among Indian companies, Quick Heal’s quarterly revenue in Q3 FY21 grew by 6.3% annually, while revenue for nine months fiscal year 21 ending December 2020 grew by 2.64%.