IBM and Palo Alto Networks expose the hidden costs of security fragmentation

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A study by IBM Institute for Business Value (IBV) and Palo Alto Networks has revealed a pressing challenge in the industry: security complexity is increasing operational inefficiencies and driving up costs for businesses worldwide.

The research found that organizations are struggling to manage an average of 83 different security solutions from 29 vendors, leading to fragmented security operations and increased vulnerabilities. In contrast, companies that have adopted a cybersecurity platformization strategy report stronger security outcomes, better efficiency, and higher returns on cybersecurity investments.

With 75% of surveyed organizations agreeing that integrating security, AI, and hybrid is crucial, the findings underscore why businesses must move away from fragmented security architectures toward a unified approach.

Why is security complexity a growing challenge for businesses?

As digital landscapes expand, organizations face an ever-growing array of cybersecurity threats. The shift towards cloud-based infrastructures, AI-powered automation, and remote work has broadened attack surfaces, making security management more complex than ever.

The study highlights that 52% of executives believe fragmented security solutions limit their ability to detect and respond to cyber threats effectively. Companies that rely on multiple disconnected security tools often experience longer response times, increased costs, and a lack of real-time visibility into their security environments.

“Security leaders are being challenged to protect digital assets while optimizing costs and minimizing complexity,” said Mark Hughes, Global Managing Partner for Cybersecurity Services at IBM. “The ability to derive value from cybersecurity investments while reducing inefficiencies is critical for business success.”

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Adding to this, cybersecurity platformization strategy is proving to be a viable solution for reducing complexity. Businesses that consolidate their security tools under a unified platform experience significant cost savings and operational efficiencies, reinforcing why the shift to platformization is a necessary evolution in cybersecurity management.

How much is security fragmentation costing businesses?

One of the most startling revelations from the study is the financial impact of security complexity challenges. Organizations estimate that security fragmentation and inefficiencies cost them an average of 5% of their annual revenue.

For a company generating $20 billion in revenue, this equates to a $1 billion financial burden—a staggering cost attributed to security incidents, operational inefficiencies, AI integration failures, and reputational damage.

Additionally, the report finds that 41% of executives believe security fragmentation has led to higher procurement costs, making cybersecurity investments more expensive than necessary.

By adopting solutions through platformization, companies can significantly reduce these costs. The research indicates that platformized security operations can cut incident response times, enhance visibility into security risks, and ultimately increase return on investment (ROI) from cybersecurity spending.

What are the benefits of security platformization?

Organizations that have embraced AI-driven security solutions and security platformization strategies are seeing measurable improvements in their cybersecurity operations. The study found that:

  • Platformized organizations experience faster threat response times, with a 72-day shorter mean time to identify (MTTI) security incidents and an 84-day reduction in mean time to contain (MTTC) threats.
  • 80% of platformization adopters report full visibility into cybersecurity risks, compared to only a fraction of non-platformized businesses.
  • Companies that integrate AI-driven security solutions see improved threat intelligence, real-time analysis, and faster incident detection.
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Karim Temsamani, President of Next Generation Security at Palo Alto Networks, emphasized the growing importance of security platformization:

“We have seen firsthand how organizations benefit from a unified cybersecurity approach. IBM and Palo Alto Networks are aligned in our vision of delivering better security outcomes through platformization. This is not just about reducing complexity today—it’s about securing the future.”

How can businesses successfully adopt security platformization?

As organizations navigate evolving cyber threats, security platformization is becoming a critical strategy for . To implement a cybersecurity platformization strategy effectively, companies should:

  • Assess their current security infrastructure to identify inefficiencies and gaps in visibility.
  • Integrate AI-driven security solutions to enhance real-time monitoring and incident response.
  • Work with trusted security partners that can provide end-to-end platformized security solutions tailored to their industry needs.

IBM and Palo Alto Networks have taken steps to support businesses in their cybersecurity transformation. One initiative includes the Cyber Range facility in Cambridge, Massachusetts, where companies can:

  • Participate in real-world cyber threat simulations to refine their response strategies.
  • Train security teams in AI-driven security solutions and incident response best practices.
  • Develop a tailored security platformization strategy that aligns with business goals.
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As cyber threats continue to evolve, companies that fail to consolidate their security architecture risk increased vulnerabilities, higher costs, and prolonged response times. The findings from IBM and Palo Alto Networks provide a clear call to action: businesses must shift towards a unified, AI-driven cybersecurity approach to remain competitive and resilient.

The future of cybersecurity lies in security platformization strategies that reduce complexity, enhance AI-driven threat detection, and improve operational efficiency. With organizations managing an overwhelming number of security tools, the need for a consolidated, AI-driven security approach has never been more critical.

As the study demonstrates, businesses that invest in AI-driven security solutions and security platformization strategies will see not only improved cybersecurity outcomes but also tangible financial and operational benefits. IBM and Palo Alto Networks continue to lead the way in helping businesses navigate this transformation, ensuring stronger security postures for the digital age.


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