Venture capital investment in cybersecurity startups doubled to $7.6bn in 2017
According to recent data taken from CB Insights, Cybersecurity startups raised $7.6bn in venture capital investments throughout 2017 – twice as much as the $3.8bn recorded in 2016.
Cybersecurity has increasingly become of significant importance of late, with a number of headline incidents such as the Equifax and WannaCry breaches having raised major concern surrounding the growth and evolution of cybercrime.
For example, according to recent research from Invotra, as many as 85% of IT professionals in the financial sector view cybersecurity as the biggest priority for firms in 2018.
With this having raised the profile of the industry, venture capital firms have invested heavily into technology startups throughout the past year.
The number of deals also rose, reaching 548 in 2017 compared to the 467 recorded a year earlier.
Some of the leading investments include data management startup Rubrik raising $180mn in a funding round, whilst cloud computing security firm Illumio raised $125mn in its own funding round, both occurring in April.
As a result of the increased emphasis being placed upon cybersecurity and the growth of the market, Gartner has predicted that global cybersecurity spending will reach $96.3bn through 2018.
Fastly's CDN Reportedly to Blame for Global Internet Outage
A huge outage has brought down a number of major websites around the world. Among those affected are gov.uk, Hulu, PayPal, Vimeo, and news outlets such as CNN, The Guardian, The New York Times, BBC, and Financial Times.
It is thought a glitch at Fastly ─ a popular CDN provider ─ is causing the worldwide issue. Fastly has confirmed it’s facing an outage on its status website but fails to specify a reason for the fault ─ only that the problem isn’t limited to a single data centre and, instead, is a “global CDN disruption” that is potentially affecting the company’s global network.
“We’re currently investigating potential impact to performance with our CDN services,” the firm said.
What is Fastly?
Fastly is a content delivery network (CDN) company that helps users view digital content more quickly. The company also provides security, video delivery, and so-called edge computing services. They use strategically distributed, highly performant POPs to help move data and applications closer to users and deliver up-to-date content quickly.
The firm has been proving increasingly popular among leading media websites. After going public on the New York Stock Exchange in 2019, shares rose exponentially in price, but after today’s outages, Fastly’s value has taken a sharp 5.21% fall and are currently trading at US$48.06.
What are CDNs?
Content delivery networks (CDNs) are a web of small computers, or servers, that link together to collaborate as a single computer. CDNs improve the performance of internet-connected devices by placing these servers as close as possible to the people using those devices in different locations, creating hundreds of points of presence, otherwise known as POPs.
They help minimise delays in loading web page content by reducing the physical distance between the server and the user. This helps users around the world view the same high-quality content without slow loading times.
Without a CDN, content origin servers must respond to every single end-user request. This results in significant traffic to the origin and subsequent load, thereby increasing the chances for origin failure if the traffic spikes are exceedingly high or if the load is persistent.
The Risk of CDNs
Over time, developers have attempted to protect users from the dangers of overreliance through the implementation of load balancing, DDoS (Denial of Service) protection, web application firewalls, and a myriad of other security features.
Clearly, by the state of today’s major website outage, these measures aren’t enough. Evidently, CDNs present a risk factor that is widely underestimated ─ which needs to be rectified with haste. Content delivery networks have become a key part of the global infrastructure, and so it’s imperative that organisations start to figure out risk mitigation strategies to protect companies reliant on the interconnected service from further disruption and disarray.