Silicon Valley Bank Survey Finds Tech Companies Preparing for When, Not If, Cyber Attacks Occur
SANTA CLARA, Calif. –– September 24, 2013 — Silicon Valley Bank, financial partner to the innovation sector, found the majority of technology and healthcare companies view cyber security as a serious threat to both their data and business continuity, and only one-third are completely confident in the security of their information in a survey of more than 200 technology company executives.
The full report, “Cyber Security Impact on Innovation,” was part of a discussion led by Silicon Valley Bank between Silicon Valley-based CEOs and Michael Daniel, Special Assistant to the President and Cybersecurity Coordinator on September 20. The group discussed the impact of cyber security threats and attacks on growing and established technology companies.
“The survey shows us the threat of a cyber attack is not just hype. A surprising number of technology companies we heard from say the threat to their IP and their business is very serious,” said Bob Curley, Managing Director of corporate finance for Silicon Valley Bank. “Companies in the tech sector, particularly software companies, are feeling exposed, and increasingly having to expend resources to manage cyber attacks, rather than investing in the growth of their business. That’s a huge impact on a growing company, and eventually the economy overall.”
Nearly all (98 percent) of companies are maintaining or increasing their cyber security resources and of those, half are increasing resources devoted to online attacks this year. Resources are most likely to be invested in monitoring, preventative policies, training and staffing rather than in preventative infrastructure, indicating they are planning for when, not if, they are attacked.
While most respondents were moderately confident in the security of their information, they were less confident in their partners’, vendors’ and clients’ security measures. Most respondents are storing their data privately, showing a lower appetite for storing their information in the public cloud. Software companies were the exception with 59% using the public cloud, versus more private behavior by hardware, healthcare and cleantech companies.
Forty-six percent of companies, whose main offering is not security, include cyber security functionality in their product and 8% more plan to add a cyber security component to their core offering.
The study, based on a survey of 216 executives of technology-based companies, is the first in a series of pulse surveys of Silicon Valley Bank’s clients intended to give similar firms adequate benchmarks to compare themselves against as they build and run their businesses.
October is National Cyber Security Awareness Month sponsored by the Department of Homeland Security. Individuals and businesses are encouraged to learn more about protecting their data. To that end, Silicon Valley Bank will host a webinar on Fraud Prevention at the end of October. Registration information will be available at http://www.svb.com/events.aspx later this month.
About Silicon Valley Bank
Banking the world's most innovative companies and exclusive wineries, SVB's diverse financial services, knowledge, global network, and world class service increase our clients' probability of success. With $23 billion in assets and more than 1,600 employees, we provide commercial, international and private banking through 34 locations worldwide. Forbes Magazine ranks us among America's Best Banks and Fortune considered SVB one of the best places to work. (Nasdaq: SIVB) www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.