Satya Nadella, CEO of Microsoft
MicrosoftThe security business is growing faster than any of its core products, and the company is now adding weight to its offering with three new services designed to help organizations detect and respond to cybersecurity incidents.
Microsoft is among the leaders in software and cloud infrastructure, which means that its technology is already the backbone for many companies of all sizes. This allows the company not only to make security software available to its customer base, but also to offer consulting-oriented services in a market where demand far exceeds supply.
The investment comes as organizations increase their security spending to handle the growing threats of ransomware attacks and network hacks. Last year, Microsoft and others technology companies have made a commitment to help fill approximately 500,000 cybersecurity jobs in the United States and CEO of Microsoft Satya Nadella annual said expenditure on research and development in cybersecurity would jump to $ 4 billion from $ 1 billion.
Security already represents a $ 15 billion annual business for Microsoft, and in 2021 it has increased faster than any other significant product or service the company sold.
Vasu Jakkal, a security-focused corporate vice president of Microsoft, told CNBC that much of Microsoft’s additional spending is on people.
“We are just widening the scale due to the demands we are seeing,” said Jakkal.
Among the new products launched is Microsoft Defender Experts for Hunting. It will involve Microsoft engineers who report problems they find in customer devices, Office 365 productivity software installations, cloud applications, and identity programs, for $ 3 per person per month. The launch will put Microsoft in more direct competition with pure-play security software companies such as Shot of the crowd.
There is also Microsoft Defender Experts for XDR, which costs $ 14 per person per month. It’s a heavy duty service that empowers Microsoft employees to help companies take action in the event of threats. That type of work is done by a variety of companies today, including the big four accounting firms.
The third new offering is Microsoft Security Services for Enterprise, which includes an even broader set of people-based services.
Craig Robinson, a security analyst at IDC, said Microsoft is poised to gain market share in managed security services.
“The whole area is growing in double digits,” Robinson said, citing the talent shortage.
One of Microsoft’s main cloud competitors, Google, it is also trying to grow in space. In March, Google announced its intention to acquire customer for $ 5.4 billion. Bloomberg reported in February that Microsoft was in talks to purchase Mandiant, which for years has been assisting government agencies and companies with violations.
With its new services, Microsoft must now scale to meet demand.
“I’m sure there are 1,000 openings at Microsoft right now, at least safely,” Robinson said.