Fed IT Security Spending to Jump 20%

Federal agency spending on IT security will grow by 20 percent over the next
five years, according to a report issued by government analyst INPUT. The
growth rate will take IT security spending from $6.1 billion this year to
$7.3 billion in 2010.

“Over the past few years we have seen a rise in crippling network viruses
and federal agencies are realizing their current systems are not enough to
fend off attacks and breaches,” Chris Campbell, a senior analyst at INPUT,
said in a statement.

The most recent Federal Information Security Modernization Act (FISMA)
report to Congress shows that federal agencies have made “moderate headway”
in reviewing information systems and implementing security plans.

Last year, 76 percent of federal IT systems reported having an up-to-date
security plan, a 12 percent increase over the previous year. Nevertheless,
federal agencies are still far off the 90 percent goal set by the Office of
Management and Budget (OMB).

“Federal agencies are feeling the pressure from OMB to get their systems
certified and accredited by the end of the year, which accounts for the
majority of the spending increase. Without a detailed security plan,
agencies will have little chance of receiving program funding,” Campbell

During the current growth stage, he added, IT security vendors need to look
for partnership opportunities.

“As a part of its cost-saving efforts, OMB has added IT security as a sixth
line of business. Although the effects of this effort will not be seen for
many years, we will likely see federal agencies consolidate programs in an
effort to reduce redundant systems,” he said. “Therefore, teaming
partnerships will become even more important to security vendors in the long

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