2 min read How COVID-19 Is Driving the Need for Digital Security
COVID-19 is driving rapid adopting of SaaS technology in sectors ranging from telehealth, remote management, virtual conferences, and more. As the world and with it the workplace moves online, we are seeing great leaps in efficiency.
However, we are also seeing weaknesses emerge. One of these weaknesses, the reason the virtual work realm hasn’t emerged sooner, is trust in the security of the system. Privacy and security of data, both personal and business, are becoming imperative needs. And when there is a need, there is an innovative company that will emerge to fill it.
Why Is Digital Security Suddenly Such A Concern?
Covid has driven the vast majority of companies to transition to an online workspace. This means every employee is working from their homes, using their own computer and their own WiFi network.
When people work from home in this way, there are more endpoints. Essentially, every employee becomes a potential access point of possibly confidential information. Because of this, companies are suddenly more vulnerable to hacks and intrusions.
The increased scalability of cloud infrastructure and the widely distributed workforce add to this susceptibility, making impactful solutions to the issue of data security now even more impactful and valuable.
We also are seeing critical societal services being forced for the first time into the virtual workspace that require high-level security. Accountants and lawyers who typically pass paper hand to hand are now working remotely and needing to find ways to manage the security of document transfers and sensitive client information.
This shift is leading to innovation and the adoption of new tools in the digital security sector.
Investing in the Digital Security Sector
Again, when there is a demand or a need, there is always a company that will step up and fill that space. These are the companies you should be looking for as an investor.
For example, companies like Zoom had a large increase in their user base and had to build out new security features on their platforms. In the beginning, there were mishaps like the one dubbed the Zoom bomb. People were randomly popping into meetings and sharing things they shouldn’t be sharing within the webinar or group meeting taking place. In response to this, Zoom added new security features to enable waiting rooms. They also required a supervisor to approve everyone that came into the virtual meeting.
There is a shift towards companies filling new needs in the marketplace. This includes everything from e-commerce to tools for increased efficiency in the manufacturing and supply chains of businesses during mass crises. And of course, this includes companies offering innovative and effective means of ensuring digital security.
So What’s the Takeaway?
The adoption of this technology, while rapid, is still in an early phase.
A lot of data will be gathered from this time and applied to the next iteration of applied software or service applications.
As an investor, you want to look for a company in this sector that can gather the incoming data, process it, and ultimately make it actionable.
Read more in the TEN Capital eGuide: The Future of Investing in SaaS
Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group
