Cybersecurity company Palo Alto Networks released a new report showing that mid-sized organizations in Asia-Pacific and Japan, including the Philippines, are increasing their cybersecurity budgets. However, challenges remain in AI adoption, cyber resilience, and response planning.
In the Philippines, companies now allocate 13.3% of their revenue to cybersecurity. The biggest budget increases are focused on security software (47.09%), network security hardware (38.35%), and data protection and privacy (37.86%).
The report also found that more Philippine companies are turning to outside partners to manage their cybersecurity needs. Also, 61% rely on partners, with that number expected to reach 79% in two years. Managed security service providers (MSSPs) are the top choice at 40%, followed by managed service providers (MSPs) and systems integrators.
Key gaps remain
While many local companies have put technical protections in place, the report reveals lower scores in governance, identification, and incident response, based on the National Institute of Standards and Technology (NIST) framework. The country scored 3.95 in Govern, 3.06 in Identify, 4.05 in Protect, 4.05 in Detect, and 3.07 in Respond.
Application and data security, security operations center (SOC) functions, and network security are currently the most common cyber tools deployed in the country.
“Cybersecurity is no longer just an IT issue, it’s a business priority,” said Michelle Saw, VP, Ecosystems, Asia-Pacific and Japan at Palo Alto Networks. “As threats grow more sophisticated and AI reshapes the threat landscape, our benchmark study reveals that many mid-market organisations are still catching up.”
Role of partners and AI integration
Technical expertise (35.9%), resilience, and the ability to share knowledge are the top reasons companies choose cybersecurity partners. However, poor performance, major security breaches, and supply chain problems are the most common reasons for switching providers.
The study also points to the challenges of managing several tools and fragmented systems, which often reduce overall efficiency.
“This study helps mid-market organisations see where they stand and take the steps needed to achieve stronger security outcomes,” Saw said. “It also highlights the growing importance of partners, who must now evolve their offerings to focus more deeply on education, integration, AI adoption, and advanced technical expertise to better support customer needs.”
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