FULL DISCLOSURE: This is sponsored content for Plurilock.
The rising demand for cybersecurity professionals has become a critical issue in today’s digital landscape, as recent high-profile hacks and cyber attacks continue to expose vulnerabilities across industries. With the increasing sophistication of cyber threats, organizations are scrambling to bolster their defenses, leading to a surge in job opportunities and a growing need for skilled cybersecurity experts.
The frequency and scale of cyberattacks have escalated dramatically in recent years, with the FBI reporting an average of 758,000 incidents annually – a figure that has nearly doubled over the past five years. However, these numbers likely understate the true extent of the problem, as many attacks go unreported. The 2023 infiltration of the Hive ransomware network by the FBI revealed that only one in five victims had filed complaints with law enforcement.
This growing threat landscape has created a booming job market for cybersecurity specialists. The U.S. Department of Labor forecasts steady growth in the field, with a widely circulated report by Cybersecurity Ventures indicating that unfilled jobs in the industry have more than tripled worldwide since 2013. The Bureau of Labor Statistics estimates that demand for cybersecurity specialists will grow by nearly a third within a decade, adding approximately 16,800 openings annually.
In response to these challenges, the Biden administration has updated its National Cybersecurity Strategy Implementation Plan, recognizing the hundreds of thousands of cyber job vacancies as both an economic opportunity and a national security issue. The plan includes initiatives to provide all Americans with basic cyber literacy and expand both private sector and federal cybersecurity workforces.
Growth of private operators
Leading cybersecurity companies meanwhile are experiencing significant headcount growth as the demand for digital protection continues to surge in an increasingly interconnected world. Firms like Palo Alto Networks (NASDAQ: PANW), CrowdStrike Holdings (NASDAQ: CRWD), and Palantir Technologies (NASDAQ: PLTR) in the large cap category are expanding their workforces to meet the evolving needs of businesses and governments facing sophisticated cyber threats, while smaller scale operators such as Plurilock Security (TSXV: PLUR) also continue to see steady growth.
Palo Alto Networks, a major player in the firewall and cloud security space, has been steadily increasing its headcount. The company reported a 11% year-over-year increase in its workforce for the fiscal year 2023, bringing its total employee count to nearly 14,000. This growth aligns with Palo Alto’s strategic shift towards AI-driven security solutions and platformization efforts.
CrowdStrike, known for its cloud-native endpoint protection platform, has also shown aggressive hiring patterns. The company’s workforce expanded by nearly 9% in the past year, now exceeding 7,000 employees globally, following growth of over 46% in the prior year. This rapid growth reflects CrowdStrike’s strong market position and its continued focus on AI-powered threat detection and response capabilities.
Palantir, while not exclusively a cybersecurity firm, has also been ramping up its hiring in the data analytics and security sector. The company has reported a 31% increase in its workforce last year, with a particular emphasis on AI and machine learning specialists to enhance its data integration and analysis platforms for security applications.
On the smaller cap side, headcount growth is less clear, due to different reporting requirements. However, growth here can be deduced from a different means – revenue growth. Take, for example, Plurilock Security (TSXV: PLUR), a cybersecurity solutions provider focused on providing IT and security solutions to the US and Canadian federal governments, along with Global 2000 companies.
The company has seen absolutely explosion growth in topline revenues over the last five year time period, which infers that employee headcount has also growth following an M&A strategy that the firm has pursued. Revenues in 2019 totaled just $646,00, which pales in comparison to the over $70.4 million it recorded in revenue in 2023.
Industry analysts attribute this growth to several factors:
- Increasing frequency and sophistication of cyber attacks
- Growing adoption of cloud technologies, requiring new security paradigms
- Rising regulatory pressures for improved data protection
- Expansion of AI and machine learning in cybersecurity solutions
The robust hiring trends at these firms underscore the critical importance of cybersecurity in today’s digital landscape. As cyber threats continue to evolve companies both large and small are positioning themselves to meet the challenge by investing heavily in human capital and innovative technologies.
However, the cybersecurity industry still faces a significant skills gap, with demand for qualified professionals outpacing supply. This shortage is likely to drive further investment in training and education initiatives by major firms to cultivate the next generation of cybersecurity experts.
FULL DISCLOSURE: Plurilock Security is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Plurilock Security. The author has been compensated to cover Plurilock Security on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
