The divide between cloud security specialists, uniquely dedicated to the data protection, and broad based software companies leveraging their expertise in cloud management and information networks is noticeable: volatile share prices for the specialists, primed for growth, and exposure to the large information and network technology industry for established companies
However, upward trends since 2017 point to underlying strengths, solid client demand and expanding markets in cybersecurity; disappointing quarterly results may set share prices back as these specialists have little room to smooth operating profit across divisions, but price volatility appears to be an investment opportunity
Private equity acquisitions – as was the case for Barracuda Networks in November '17 – signal that the growth potential of cybersecurity is alive and well - and many more acquisitions led by Thoma Bravo private equity confirm the trend
