Software Now Commands 40% of Cybersecurity Budgets — Surpassing Hardware and Outsourcing
Security software spending now commands 40% of enterprise cybersecurity budgets, surpassing hardware at 15% and exceeding personnel costs by 11 percentage points. Global spending reaches $240B in 2026 with 12.5% YoY growth acceleration. XDR delivers 40-60% faster detection. Microsegmentation cuts breach costs 45%. APAC leads with 22% expecting double-digit growth. However, organizations with $25M+ budgets show 35% probability of managing 50+ tools. CISOs must consolidate platforms, budget AI security explicitly, and validate risk reduction.