Cybersecurity spending will continue to increase amid accelerating digitalisation and the development of artificial intelligence, forcing companies to incorporate these costs into the prices of their products and services, according to Yugo Neumorni, President of CIO Council Romania.

Speaking at the Energy Cybersecurity Forum in Cluj-Napoca, he also raised concerns about the security risks associated with technology equipment manufactured in China, particularly when deployed in critical infrastructure.

According to Yugo Neumorni, estimates by research and consulting firm Gartner point to an annual increase of approximately 10% in global cybersecurity budgets.

“Gartner estimates that cybersecurity budgets are growing by 10% annually worldwide. They account for somewhere between 0.5% and almost 1% of a company’s revenue, which is an enormous amount, and this is a continuing trend,” Neumorni said.

He explained that these expenditures are becoming particularly difficult to sustain for entrepreneurial businesses, which must allocate additional resources to protecting their IT systems alongside the investments required for their core operations.

“Things have certainly reached this stage in Romania as well. If we look further down the market, towards entrepreneurial businesses, this type of budget is not particularly easy to sustain. It is not easy for an entrepreneur running a manufacturing business or any other type of operation to invest in cybersecurity as well, but they have to do it,” he said.

“Cybersecurity is a cost, not an investment”

Yugo Neumorni believes cybersecurity should be regarded as an ongoing operating expense, essential to running a company, and incorporated into the cost of products and services.

“I continue to believe that cybersecurity is a cost, not an investment. Suppliers generally consider it an investment, and we thank them for supporting us. From another perspective, it may indeed be an investment, but it is a cost that needs to be incorporated into the cost of goods sold, into the price of the product or service. Unfortunately, this cost appears set to increase further and further,” he said.

In his view, this reality is also putting pressure on energy companies, which must justify additional expenditure at a time when consumers are already facing high energy bills.