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Cybersecurity Investment Market: Here’s to the Resilient Ones

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cybersecurity Investment Market

By Anastasia Komissarova – Deputy CEO at Group-IB

I guess we all agree that AI is the hottest segment today – 90% of all discussions in VC / Tech are around AI, mega-rounds, extreme multiples. 3-4 years ago, the very same discussions were about cybersecurity.

Cyber was and still is one of the most well-funded tech segments  – in 2021 alone cybersecurity companies received an unprecedent amount of $21.8 bn (just $8.7 bn in 2023 though). 2021-2022 were the days of crazy valuations and 10x+ EV/Revenue multiples. Basically, it didn’t even matter if you were profitable or even planning to be profitable – if you were good in marketing, had a nice pitch and could sell fear well, the money was yours.

It all changed in 2023. The cost of funds, global instability, new technological shifts led to cooling of investors’ appetite for risk and thus raised quite existential questions for cybersecurity players. 

At the same time cyber threats continue to grow worldwide. In latest Hi-Tech Crime Trends 2023/2024 Group-IB disclosed 74% yoy growth in data leaks, 70% yoy increase in zero-day exploits for sale, 30% reduction of average price of corporate access etc. 

However fear is not selling that well anymore – we start seeing a certain level of fatigue from constant growth of cybersecurity expenses on the customers’ side. New siloed solutions arise every day and CISOs receive hundreds of pitches per month. But is just another EDR a gamechanger for the customer? Or are businesses more interested in receiving a holistic proposal covering most of the key attack vectors? 

If the latter is true (which it is) it could only mean one thing – limited growth opportunities for mono-product vendors. Limited growth of revenue means higher increase of cash burn rate.  Since in most cases such companies got used to accessibility of external financing, which is now gone, we shall be prepared for a new wave of M&As in cybersecurity or for some companies going out of business.

It’s also true that some 5 years ago founders of cybersecurity shops facing doubts about next round valuations could have used another goldmine of tech companies – Initial public offering (IPO). In the past if you were growing fast and generating some $50 mn in annual recurring revenue (ARR) – you were a great IPO target. Most of cybersecurity companies became publicly traded unicorns with ARR around $100 mn. Today it’s also not an option. With current 4-5x EV/Revenue multiples, you need to have a solid ARR of at least $250 mn to be able to have a moderately successful IPO.

So, let’s recap that now:

  • • Growing fatigue level of executives in B2B segment limits growth opportunities for niche cybersecurity players
  • • Private capital became less available, investor’s now look not only how cool the tech is but how sustainable the business model is.
  • • Public markets’ requirements are toughening: only companies that reach significant revenue levels can be viewed as attractive IPO targets.

Some might feel that such shifts limit innovative potential and set higher barriers for entering the market. But I am feeling quite positive as it means the game is becoming more fair and more mature. It’s not just about those who burn cash on marketing and customers acquisition or spend more time in the Valley but more about those who know how to invest smartly and do more with less. I believe everyone will win from such shift in investment perspective:

  • • Businesses will be getting better solutions as vendors will focus more on quality of the product than on marketing.
  • • Start-ups will learn better financial discipline and healthier growth strategies.
  • • Scale-ups will focus on building billion-dollar-revenue companies rather than on billion-dollar valuations.
  • • Investors that do choose to invest into cybersecurity shops matching the new criteria even now will generate higher returns as their funds will be used more efficiently.

Cybersecurity has already become an existential part of each company’s strategy and it will preserve its place for years to come. Social significance of cybersecurity issues is crucial: from loss of privacy and advanced disinformation to artificial intelligence abuse. And this shall constantly drive the level of responsibility of cybersecurity companies. Tightening financial requirements, higher maturity of spending decisions from customers and investors will lead to more sustainable growth, higher resilience of cybersecurity companies and thus more probability to minimize cyber threats in the future.

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Tech Features

Leading Enterprise Systems Through Smart Integration

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IT professionals in formal attire working together around a cloud dashboard and server racks, with holographic interfaces showing connection diagrams and performance metrics.

Exclusive Interview with Bibin Varghese & Jins Alex, Managing Partners, Hedges Information Technology LLC

Enterprise systems integration is more than just linking hardware; it’s about forging trust-based partnerships, delivering tailored solutions, and providing ongoing support. In this exclusive interview, Bibin Varghese and Jins Alex, Managing Partners at Hedges Information Technology LLC, share how they steer complex integrations in the UAE market.

What Sets You Apart in Enterprise Systems Integration?

Bibin Varghese:

At Hedges, we’ve always believed that technology alone doesn’t drive value—relationships do. What sets us apart is our commitment to building long-term partnerships based on trust, agility, and results. We don’t operate as just another vendor; we become embedded in our clients’ growth journeys. Every solution is tailored to the client’s unique environment, backed by deep technical expertise, and approached with complete ownership. That’s why clients across sectors rely on us not only for today’s needs but as future-ready advisors.

Technology Partners Fueling Enterprise Systems Integration

Jins Alex:

Over the years, we’ve curated partnerships with leaders like Bitdefender for next-gen cybersecurity, Synology for scalable backup and storage, and Dell and HP for robust infrastructure. Post-implementation, our managed services include proactive system monitoring and both remote and on-site support—because for us, support isn’t an afterthought, it’s a strategic commitment.

UAE Trends in Enterprise Systems Integration

Bibin Varghese:

Enterprises here are embracing hybrid digital ecosystems—mixing cloud and on-premises infrastructure for agility and compliance. To stay ahead, we integrate Dell and HP enterprise servers, Synology storage solutions, and Bitdefender security into a unified stack that underpins our client’s digital transformation initiatives.

Cybersecurity Integration: Securing Your Enterprise Systems

Jins Alex:

Cybersecurity is a business-critical function. We deploy Bitdefender’s AI-powered threat detection, Synology’s structured backup, and secure Dell/HP hardware to build multilayered defenses. In the UAE, the shift is from reactive to predictive security—automated threat response, integrated monitoring, and real-time threat intelligence are the next frontier.

Cloud Integration Strategies for Enterprise Systems

Bibin Varghese:

Cloud is now core to digital strategy. We guide clients through readiness assessments, strategy, migration, and long-term governance across public, private, and hybrid environments. Our cloud offerings leverage our OEM partnerships and a dedicated services team to ensure cost control, scalability, and security.

Sales Literacy in Enterprise Systems Integration

Jins Alex:

While not every sales rep must be deeply technical, a solid grasp of AI, cybersecurity, infrastructure, and cloud is essential. Our sales professionals translate technical value into business impact, enabling them to have meaningful conversations with CIOs and CTOs and ensure smooth, aligned implementations.

AI-Driven Enterprise Systems Integration

Bibin Varghese:

We treat AI not just as a tool but as a differentiator. From Bitdefender’s AI threat detection to Dell’s intelligent servers, we help clients map out use cases, manage change, and make AI actionable, turning abstract concepts into real business value.

Startup Collaborations in Enterprise Systems Integration

Jins Alex:

We work with startups in health tech, logistics, e-commerce, and fintech, providing secure, scalable IT foundations from day one. The most exciting verticals in the UAE are AI-driven applications, sustainable technologies, and digital finance—areas where robust integration can make all the difference.

Find out more on Digital Magazine Technology – The Integrator

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Tech Features

Artificial Intelligence and the Future of Education

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A modern UAE classroom where students use tablets and an AI-powered smart board displaying personalized learning modules, guided by a teacher.

By Stewart Monk, Senior Vice President and General Manager, International at PowerSchool

AI in education is revolutionizing how we learn, teach, and manage classrooms. By embedding adaptive platforms, personalized feedback systems, and data-driven insights into every lesson, schools can empower students, streamline administration, and uphold ethical best practices from day one.

AI in Education: Real-World Implementation

Empowering students to become AI creators rather than passive consumers is essential. The UAE’s initiative to integrate AI into the national curriculum equips learners with skills in data analysis, algorithmic thinking, and software development, preparing them for a future where AI drives industry innovation. Early exposure fosters digital literacy, ethical reasoning, and hands-on project design that bridge theory and practice.

Schools are already transforming through tools like adaptive learning platforms, personalized feedback systems, and advanced data analytics. These innovations streamline administrative tasks, tailor instruction to individual needs, and free educators to focus on student engagement and mentorship.

Ethical AI in Education

With a majority of educators advocating early AI education, ethical considerations must be front and center. Protecting student data through secure, in-house AI deployments and enforcing strict access controls are best practices. Addressing bias requires vendors to share training data for third-party audits and continuous system monitoring to ensure fairness and inclusivity.

AI in Education as Your Study Buddy

AI isn’t just a buzzword—it’s becoming an integral part of the educational experience. In a recent UAE-based study, 86% of students said they use AI tools for academic tasks, and over half rely on them weekly for things like summarization, brainstorming, and coding assistance. Tools like the “All Day TA” from the University of Toronto—now adopted by nearly 100 universities globally—answer thousands of student queries per semester, showing us what’s possible when tech meets educator.

Ensuring AI Assists, Not Replaces

AI’s integration into grading, lesson planning, and operations lets teachers devote more time to creativity, critical thinking, and relationship-building. Educators also need robust AI literacy training to understand limitations, ethical use, and the necessity of human oversight.

The Future of Artificial Intelligence in Education

AI promises a dynamic, efficient, and responsive education system—personalizing learning, supporting teachers, and addressing equity. Thoughtful implementation, grounded in ethical principles and continuous oversight, will ensure every student stays on a path toward academic growth and long-term success.

Read more about smart learning in MENA in our article Beyond the Blackboard: The Arab World’s Leap into Smart Learning (Digital Magazine Technology – The Integrator)

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Tech Features

Role of EdTech in MENA region: How Online Education is Enhancing Future Readiness of Workforce

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a tablet with an AI agent portrayed in on the screen placed on a table alongside papers, pencils and a cup of coffee - all depicting AI-powered online education
By Vikraman Poduval, CEO of Saal.ai
a portrait of Vikraman-Poduval, CEO of Saal.ai
Vikraman Poduval, CEO, Saal.ai

The EdTech industry in the Middle East and North Africa (MENA) region is undergoing rapid expansion. The regional online education market is projected to reach a value of USD 1.31 billion by 2029, with a compound annual growth rate (CAGR) of 19.81% between 2025 and 2029.

EdTech plays an important role in modernising the regional education landscape as it can enhance learning experiences, Moreover, as the ongoing digital revolution raises concerns about employability and skill gaps, advanced digital learning solutions promise to drive innovation in learning, promote continuous professional development, and help foster a digitally literate workforce, aligning with the demands of a knowledge-based economy.

For instance,  Saal’s AI-based learning platform synergises the capabilities of AI and big data to create detailed skill maps for individuals, align them with target roles or desired career paths, and streamline their journey to professional success. Furthermore, online educational platforms help optimise the search for the right talents, by maintaining a comprehensive skill and occupation-based database, a competency mapping engine, leadership development modules, and robust mechanisms for aggregating data from diverse systems.

UAE’s role as a key driver of the regional EdTech revolution

The UAE stands out as a trailblazer and a true pioneer, catalysing the ongoing growth of the regional online education industry, through its groundbreaking initiatives such as the recent decision to make AI a formal subject in the national curriculum. This makes the UAE one of the first nations to integrate AI as an integral facet of its foundational education framework.

This strategic decision is poised to help develop a robust local talent pipeline, by developing AI literacy at an early age and building a self-sustaining ecosystem consisting of future developers, and engineers. It will also help equip learners with critical thinking and technical skills, which are necessary to succeed in a tech-centric world. This exemplary strategic endeavour also provides a practical model which the rest of the world can aspire to emulate, highlighting the nation’s enduring commitment to innovation and positioning education as the cornerstone of broader economic transformation.

In such a scenario, there is a need for smart, scalable platform which promote competency-based education using AI algorithms that can tailor content, assessments, and learning paths in real-time based on student needs. Such advanced systems also feature unique capabilities like AI-powered learning companions, intelligent feedback and progress monitoring, real-time risk detection and predictive analytics to guide timely intervention.

Furthermore, these tools enable learners to consistently enhance market-specific skills, while gaining powerful insights via behavioural tracking, cohort analysis, and content effectiveness metrics. Institutions can leverage these tools to ensure improved student outcomes, optimised teaching strategies, and better alignment with industry demands. Advanced AI learning platforms also automate routine academic tasks and integrate multilingual AI chatbots that answer student queries and flag knowledge gaps, enhancing institutional efficiency and elevating the learner’s experience.

AI-powered learning: Key to nurturing a future-ready workforce

In the MENA region, there is a growing disconnect between education and job market needs, led by rapid digitalisation and economic diversification efforts. To ensure that the regional educational sector can keep pace with evolving market demands, it is vital to prioritise competency-based, personalised learning. For instance, ‘AcademyX’, Saal.ai’s flagship AI-powered competency development platform designed for educational institutions, government bodies, and enterprises, can create personalised learning journeys based on user profiles, performance trends, and evolving industry requirements. Such platforms also support national efforts to enhance employability, promote lifelong learning, and foster a digitally fluent, innovation-driven workforce. It also enables educational institutions to identify learning gaps as early as in the first semester, empowering educators to initiate timely interventions and ensure improved academic outcomes, engagement, and retention.

Such a holistic approach is critical to making sure that educational goals and outcomes are aligned with broader market requirements so that students gain practical skills which can enhance their employability and future readiness. Saal.ai’s ‘DigiXT’ platform plays a vital role in this regard as it empowers both learners and educators to work with real-world datasets, while familiarising them with industry-grade tools, AI research capabilities, and cloud-based analytics environments.

Though EdTech holds the potential to transform the MENA region’s educational landscape, it is essential to address key challenges like access, affordability, and quality. Furthermore, it is vital to understand the role of AI in promoting personalised feedback and interactive methods. By embracing AI-powered online education as a tool that complements traditional education, the regional education industry can catalyse its growth, while achieving improved learning outcomes and greater educational equity.

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