Security News > 2020 > March > Cybersecurity Sector Faces Reckoning After Coronavirus Hits

"Forecast: short term cloudy and cold, but long term sunny and hot," he says, adding that the long-term enterprise adoption of technologies such as cloud computing, agile development, operation technology, internet of things devices and 5G will continue to serve as catalysts for security companies, boosting their bottom lines.

Before the market plummeted on Monday, Sequoia Capital - one of the world's largest venture capital firms and a major investor in security companies such as Armis, FireEye and Okta - released a report on Thursday warning of a likely Black Swan event, which is defined as any unforeseen event that has a major, often catastrophic effect.

In the short term Coviello says security firms face a likely reckoning from COVID-19 concerns over their valuations.

"Security companies with the best value propositions, traction and technology will recover much faster and I would expect to see unevenness in any bounce back as a result - both public and private," he says.

Even amidst the Monday chaos, as Wall Street markets crashed and trading was briefly halted, cybersecurity M&A activity continued in the form of WatchGuard Technologies, which is known for its network security tools and threat intelligence, announcing a deal to acquire Panda Security, a 30-year-old security firm that specializes in endpoint protection and is based in Spain.

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