CybersecurityCybersecurity sector welcomes Obama’s $14 billion cybersecurity initiatives in 2016 budget

Massachusetts cybersecurity firms applauded President Barack Obama proposed $14 billion toward cybersecurity initiatives in his 2016 budget.. If approved, the federal government would spend more money on intrusion detection and prevention capabilities, as well as cyber offensive measures. Waltham-based defense contractor Raytheon, whose government clients already use the firm for its cybersecurity capabilities and expertise, believes the cybersecurity industry is expected to grow even faster in the coming years.

A study by technology research firm Gartner predicts that by 2020, 75 percent of large-scale companies’ security budgets will be allocated to cyber-related rapid detection and response approaches. “Given the confluence of knowledge and entrepreneurship in the region around big data, Internet of Things, and security, Massachusetts companies are poised to be major leaders in solving security challenges and likely suppliers to government security programs,” said Jen Ellis, senior director of public affairs for Boston-based IT security company Rapid7.

“The increase in spending will hopefully make its way to Massachusetts as government agencies try to keep critical information out of malicious hands,” adds Gil Zimmermann, CEO and co-founder of Waltham-based cloud security firm CloudLock, in an e-mail to the Boston Business Journal. “The opportunity for Massachusetts is appealing and the state just may see some of those resources.”

Recent stories of hacks against U.S. private sector firms have led the federal government to increase its efforts to protect consumer information. “These days, you can’t turn on the TV or scan your news feed without hearing about another breach causing huge losses of personal information, including credit card data and passwords,” Zimmermann said. Government efforts to improve credit card security include the mandate that government-issued credit cards will have a chip built into them for better security against fraud. The current cards with a magnetic stripe will be phased out. “The chip by itself will dramatically reduce counterfeit fraud, which is the most predominant fraud type today,” said Oliver Manahan, MasterCard’s vice president of emerging payments.

Patrick Morley, CEO of Waltham-based cybersecurity firm Bit9 + Carbon Black, said increased federal spending on cybersecurity will help spur advancement in research and improve security measures for consumers and the government. “Having increased focus on cyber security at the federal level is good for the country,” Morley said. “In today’s world of relentless threats and attacks aimed at specific targets, such as major retailers, this type of commitment from the federal government is critical.”