The Total Economic Impact™
Of Kaspersky Industrial
CyberSecurity for Networks
Cost Savings And Business Benefits
Enabled By Industrial Cybersecurity for Networks
APRIL 2021

A FORRESTER TOTAL ECONOMIC IMPACT™ STUDY COMMISSIONED BY KASPERSKY

Table Of Contents

Consulting Team: Kris Peterson

Executive Summary ................................................. 1
The Kaspersky Industrial CyberSecurity For
Networks Customer Journey .................................. 5
Interviewed Organization........................................ 5
Key Challenges ...................................................... 5
Use Case Description ............................................. 5
Analysis Of Benefits ................................................ 6
Reduced Risk Of a Cybersecurity Breach.............. 6
Reduced Projected Cost Of Damaged Equipment 7
Unquantified Benefits ............................................. 8
Flexibility ................................................................. 8
Analysis Of Costs .................................................... 9
Cost Of KICS For Networks License And Updates 9
Cost Of Personnel Learning And Optimizing The
Platform ................................................................ 10
Financial Summary ................................................ 11
Appendix A: Total Economic Impact ................... 12
Appendix B: Endnotes .......................................... 13

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THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKSExecutive Summary
Kaspersky Industrial CyberSecurity for Networks delivers industrial-level cybersecurity
solutions for operational technology networks. Customers can use this platform to reduce
the likelihood and consequence of a network breach that either disrupts or entirely halts
production, which might otherwise result in negative financial impact such as potential
regulatory fines, lost revenue, or damaged mission-critical industrial equipment.

Kaspersky commissioned Forrester Consulting toconduct a Total Economic Impact™ (TEI) study and

KEY STATISTICS

examine the potential return on investment (ROI)
enterprises may realize by deploying Kaspersky
Industrial CyberSecurity (KICS) for Networks. The
purpose of this study is to provide readers with aframework to evaluate the potential financial impact
of KICS for Networks on their organizations.
Kaspersky’s monitoring platform provide industrial-

Return on investment (ROI)

Net present value (NPV)

135%$1.67Mlevel cybersecurity to operational technology (OT)
networks, in the form of asset discovery, telemetry
analysis, network integrity control, intrusion detection,

Networks. Forrester used the experience of thisindustrial protocol command inspection, and machinecustomer to project a three-year financial analysis.

learning for anomaly detection. The platform consistsof servers and sensors that are dedicated tomonitoring the network traffic to decipher any
potential threats to the OT network. As a passive
solution, KICS for Networks is designed to never stop
the industrial process and not have any detrimental
influence on critical processes. By providing
expeditious, critical alerts of potential threats to theuser, the platform facilitates the most prudent courseof action to neutralize threats. KICS for Networks is

Prior to using KICS for Networks, the customer
focused on protecting the network perimeter withsensors, firewalls, and intrusion prevention systems
with a variety of products — however, it lacked
specialized tools for the OT network. As theorganization grew in size and complexity, it became
apparent that a better, specialized, and more unified
system was needed to provide the requisite
protection.

deployed under a perpetual license and includes

After the investment in KICS for Networks, theupdates for new emerging threats, signatures, andcustomer integrated the platform into its existing

detection rules, as well as exclusive 24/7 support,

infrastructure and security information and event

emergency onsite visits, and expert analyst content.

management (SIEM) framework. Since

To better understand the benefits, costs, and risks
associated with this investment, Forrester interviewed
an organization with experience using KICS for

implementation, the interviewed executive has had
zero security incidents due to its success in
identifying and closing network security gaps.

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

1EXECUTIVE SUMMARY

Key results from the investment include reductions inboth the risk of a cybersecurity breach and in the
projected costs of equipment damaged by a breach.

Costs. Risk-adjusted PV costs include:•

Cost of KICS for Networks licenses andupdates totals $1,202,493 million. Kaspersky

KEY FINDINGS

provided a price quote for the platform andQuantified benefits. Risk-adjusted present value

subsequent updates.

(PV) quantified benefits include:••

Cost of personnel learning and optimizing theReduced risk of cybersecurity breach valued

platform totals $32,575. Certain personnel

at $2,561,721 million. KICS for Networks blocks

needed training in order to learn the capabilities

malicious objects from accessing OT networks,of KICS for Networks and to optimize thereducing the risk and impact of a breach.

deployment of the platform.

Preventing an OT breach that has the potential to
shut down production can reduce or eliminate a

Cost of KICS for
Networks platform

variety of negative impacts, including overtime
work and expense to restore operations,
regulatory fines, lost revenues, and additional$1,202,493

expenses incurred in the notification of affectedparties, lawsuits, customer compensation, andaudit and security compliance.
•

Reduced projected cost of damaged

The interview and financial analysis found that thismachinery valued at $338,923. Preventing ancustomer experiences benefits of $2,900,644 over

OT breach that has the ability to damage or

three years versus costs of $1,235,068 adding up to

destroy essential machinery can reduce ora net present value (NPV) of $1,665,576 million andeliminate expenditures that would have been

an ROI of 135%.

necessary to restore production capabilities.

Reduced risk of cybersecurity
breach$2,561,721

Unquantified benefits. Benefits that are notquantified for this study include:•

Improved asset management program. KICS
for Networks can assist organizations with thereconciliation of their documented network andactual network, providing transparency into
network assets and access points.

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

2EXECUTIVE SUMMARYROI

BENEFITS PV

NPVPAYBACK

135%$2.9
million$1.7
million8 months

Benefits (Three-Year)

Reduced risk of cybersecurity
breach with KICS for Networks$2.6M

Reduced projected cost of$338.9K
damaged equipment

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

3

EXECUTIVE SUMMARYTEI FRAMEWORK AND METHODOLOGY
From the information provided in the interviews,
Forrester constructed a Total Economic Impact™
framework for those organizations considering an
investment in KICS for Networks.
The objective of the framework is to identify the cost,

DUE DILIGENCE
Interviewed Kaspersky stakeholders andForrester analysts to gather data relative to theIndustrial CyberSecurity for Networks.

benefit, flexibility, and risk factors that affect the

CUSTOMER INTERVIEWInterviewed one decision-maker at an

investment decision. Forrester took a multistep

organization using the Industrial CyberSecurity

approach to evaluate the impact that KICS for

for Networks to obtain data with respect to

Networks can have on an organization.

costs, benefits, and risks.

FINANCIAL MODEL FRAMEWORK
Constructed a financial model representative of
the interview using the TEI methodology and
DISCLOSURES

risk-adjusted the financial model based on

Readers should be aware of the following:

issues and concerns of the interviewed

This study is commissioned by Kaspersky and delivered
by Forrester Consulting. It is not meant to be used as acompetitive analysis.

organization.

Forrester makes no assumptions as to the potential ROI
that other organizations will receive. Forrester strongly
advises that readers use their own estimates within theframework provided in the report to determine theappropriateness of an investment in the Industrial
Cybersecurity for Networks.
Kaspersky reviewed and provided feedback to Forrester,
but Forrester maintains editorial control over the study
and its findings and does not accept changes to the study
that contradict Forrester’s findings or obscure themeaning of the study.

CASE STUDY
Employed four fundamental elements of TEI inmodeling the investment impact: benefits, costs,
flexibility, and risks. Given the increasing
sophistication of ROI analyses related to IT
investments, Forrester’s TEI methodology
provides a complete picture of the total
economic impact of purchase decisions. Please
see Appendix A for additional information on the
TEI methodology.

Kaspersky provided the customer name for the interview
but did not participate in the interview.

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

4The Kaspersky Industrial CyberSecurity For Networks Customer
Journey
Drivers leading to the Industrial CyberSecurity for Networks investment

INTERVIEWED ORGANIZATIONUSE CASE DESCRIPTION

Forrester interviewed a KICS for Networks customer

After considering other solutions, the interviewed

with the following characteristics:

organization chose to proceed with a KICS for•

They are a regional electricity provider that
operates nearly 400 substations.

•

Networks platform because it covered the required
security certifications, worked better with the existing
SIEM, and provided better monitoring of the network.

Their service area is approximately 70,000
square kilometers.

KEY CHALLENGES
As critical infrastructure, the interviewed organizationis required by law to take steps to protect its
operations. As such, it has embarked on amodernization journey for its operations control
centers.
The interviewed organization struggled withchallenges, including:•Managing the risk of an OT breach. The

Key assumptions• Large industrial
enterprise• Facing end-of-life
decision for OT network
security

manager stated: “We haven’t been victims of any
purposeful attacks, but this is possible, and we’veseen it happen with our colleagues in othercountries. Consequences could be very negative:
damage to the equipment, financial loss
(including revenue loss, labor costs, fixing
equipment), and reputational damage.”•

Reconciling OT network to documentation.
Having accurate, up-to-date documentation of an
OT network and related assets can be a

“Incidents here are rare, but they
could cause extreme consequences.”challenge for organizations. The manager
explained: “The systems are complex, and theManager of infrastructure, energy

partners who create projects and those who leadthe installation and manage settings for the OT
networks are not the same company. When the
project is large, it is really hard to check andmanage all details. It is hard to ensure thateverything is built without errors and matches the
project exactly.”

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

5

Analysis Of Benefits
Quantified benefit data

Total Benefits
Ref.

BenefitYear 1

Year 2

Year 3

Total

Present Value

Atr

Reduced risk of cybersecurity
breach with KICS for
Networks$1,030,106$1,030,106$1,030,106$3,090,318$2,561,721

Btr

Reduced projected cost ofdamaged equipment$136,286$136,286$136,286$408,857$338,923

Total benefits (risk-adjusted)$1,166,392$1,166,392$1,166,392$3,499,175$2,900,644

REDUCED RISK OF A CYBERSECURITY BREACH•

A negative financial impact of $1,232,000 can be

Evidence and data. For the interviewed

attributed to remediation efforts and overtime

organization, mitigating the potential impact of awork to restore operations as well as otherbreach is a top priority. KICS for Networks is critical

impacts such as regulatory fines, notification of

to closing gaps in network security, monitoring its

affected parties, lawsuits, customer

systems, and preventing any intrusions. For ancompensation, additive audit and security

industrial enterprise, a breach can result in not only

compliance needs, lost revenues, lost customers,

shutting down production, but costly remediation

and brand equity.

efforts to restore operations and reputation, including
overtime work for employees.

Modeling and assumptions. To supplement
information from the customer interview, Forrester

While successful OT breaches do not occur with any

has used the following data from industrial

regularity at most organizations, Kaspersky has

respondents to the survey:

collected data from its customers to assess the•prevalence of threats, including specific percentages

assumed that one of these breaches has theof industrial control systems (ICS) computers that

potential to shut down energy production.

were able to block malicious objects in the following
time frames: 32.6% in the first six months of 2020;

Of the average 2.9 breaches, Forrester has•

Twenty-five percent of the 8,800 employees per

39.2% in the last six months of 2019; and 41.2% inorganization suffered 3.3 hours of downtime per

the first six months of 2019.1

breach.

Forrester has conducted a survey of organizations
across industries on the impact of cybersecurity
incidents.2 This survey shows that industrial
respondents averaged:•

In the prior 12 months, 2.9 breaches occurred.

•

Twenty-five percent of the 8,800 employees perorganization suffered 3.3 hours of downtime per
breach.

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS$2.6
millionthree-year
benefit PV

88%

Reduced risk of acybersecurity
breach: 88% of
total three-year
benefit PV

6

ANALYSIS OF BENEFITS

Risks. The value of this benefit can vary across

To account for these risks, Forrester adjusted thisorganizations due to differences in:benefit downward by 30%, yielding a three-year, riskadjusted total PV (discounted at 10%) of $2,561,721.

•

The frequency of attempted breaches.

•

The types of attempted breaches.

•

Legal and regulatory enforcement of fines andcompensatory payments.

Reduced Risk Of Cybersecurity Breach With KICS For Networks
Ref.

MetricCalculation

Year 1

Year 2

Year 3

A1

Average potential cost of breach,
exclusive of internal user downtime

Forrester survey$1,232,000$1,232,000$1,232,000A2Average number of employees

Forrester survey

8,800

8,800

8,800

A3

Average internal user downtime

Forrester survey

3.3

3.3

3.3

A4

Fully-burdened hourly wage forexperienced industrial personnel

payscale.com

$33

$33

$33

A5

Percentage of employees affected per
breachForrester survey

25%

25%

25%

A6

Projected breaches for industrial
enterprises that shut down production

Forrester survey

1

1

1

At

Reduced risk of cybersecurity breachwith KICS for Networks((A1+(A2*A3*A4*A5))*A6$1,471,580$1,471,580$1,471,580

Risk adjustment↓30%$1,030,106$1,030,106$1,030,106

Atr

Reduced risk of cybersecurity breachwith KICS for Networks (risk-adjusted)
Three-year total: $3,090,318

Three-year present value: $2,561,721

REDUCED PROJECTED COST OF DAMAGED

Modeling and assumptions. To quantify thisEQUIPMENT

benefit, Forrester has assumed the following:

Evidence and data. In addition to the potential•

impacts of a breach which are noted above, theassumed that one of these breaches has thethreat of equipment and facilities being damaged or

potential to shut down energy production.

destroyed is a compelling concern for the interviewed
organization. Successful OT breaches have resulted

Of the average 2.9 breaches, Forrester has•

Five percent of the projected breaches arein the destruction of equipment and facilities andassumed to be capable of causing equipment

injury to employees.3 The manager of infrastructuredamage.

declared that, “Damaging even one unit of our•equipment is more expensive than KICS for

The projected cost to replace damaged
equipment, after converting the local currency to

Networks.” When asked how much it may cost to

USD, is $3,893,880.

replace damaged equipment, the manager replied bysaying that it would cost millions of dollars.

Risks. The value of this benefit can vary acrossorganizations due to differences in:

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

7

ANALYSIS OF BENEFITS•

The type of equipment and facilities.

•

The frequency of attempted breaches.

•

The type of attempted breaches.

12%

Reduced projected cost ofdamaged equipment: 12%

To account for these risks, Forrester adjusted thisbenefit downward by 30%, yielding a three-year, risk-$338,923

of total three-year benefit

three-year
benefit PV

PVadjusted total PV of $338,923.

Reduced Projected Cost Of Damaged Equipment
Ref.

MetricCalculation

B1

Projected cost to replace damaged
equipment

Customer interview

B2

Projected breaches for industrial
enterprises that shut down production

B3
Bt

Btr

Year 1

Year 2

Year 3$3,893,880$3,893,880$3,893,880

Forrester survey

1

1

1

Portion of projected breaches assumed tobe capable of causing equipment damage

Forrester survey

5%

5%

5%

Reduced projected cost of damaged
equipment

B1*B3$194,694$194,694$194,694

Risk adjustment↓30%$136,286$136,286$136,286

Reduced projected cost of damaged
equipment (risk-adjusted)
Three-year total: $408,857

Three-year present value: $338,923

UNQUANTIFIED BENEFITS

accidents. When something goes wrong, we

Additional benefits that the customer experienced but

would need to look at the equipment and figure it

was not able to quantify include:

out.”

•

Improved asset management program. KICSFLEXIBILITY

for Networks can provide organizations with

The value of flexibility is unique to each customer.

increased visibility of networks and production

There are multiple scenarios in which a customer

assets, as well as time savings in diagnosing any

might implement KICS for Networks and later realize

issues with operations. The manager of

additional uses and business opportunities, including:infrastructure noted: “KICS helped us identify
discrepancies between the new network project•

SIEM integration, optimization, andscalability. KICS for Networks offers API

and the project documentation. As a result, we

integration, machine learning, and the ability toworked with partners who were leading thescale by adding additional servers, sensors, andproject to fix the discrepancies. Now theendpoint solutions.

documentation corresponds exactly with what’s
actually built.” He continued by adding: “Without

Flexibility would also be quantified when evaluated as

KICS for Networks, we would have most likely

part of a specific project (described in more detail in

discovered these discrepancies throughAppendix A).

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

8Analysis Of Costs
Quantified cost data

Total Costs
Ref.

Cost

InitialYear 1

Year 2

Year 3

Total

Present Value

Ctr

Cost of KICS for
Networks license andupdates$545,600$272,800$259,160$259,160$1,336,720$1,202,493

Dtr

Cost of personnel
training$14,520$7,260$7,260$7,260$36,300$32,575

Total costs (riskadjusted)$560,120$280,060$266,420$266,420$1,373,020$1,235,068

COST OF KICS FOR NETWORKS LICENSE AND

Risks. To account for any potential variation

UPDATES

organizations may experience, Forrester adjusted

Evidence and data. The deployment of KICS for

this cost upward by 10%, yielding a three-year, risk-

Networks servers and sensors can vary acrossadjusted total PV (discounted at 10%) of $1,202,493.

organizations. Kaspersky has informed Forrester thata single, large industrial company usually needs one
to five servers and five to 10 sensors.
Cost of license

Modeling and assumptions. Kaspersky provided a
price quote for the requisite solution for the$1.2 million

composite organization use case of $496,000 for thethree-year costPV

perpetual license, with the cost of annual updates,

and updates:
97% of total
three-year benefit
PV(including signature updates, detection rules, and97%

anti-APT updates as well as customized updates)
being 50% of that amount after Year 1 and slightly
less in Years 2 and 3. These costs also coverongoing exclusive 24/7 support and expert analyst
content.

Cost Of KICS For Networks License And Updates
Ref.

MetricCalculation

InitialYear 1

Year 2

Year 3

C1

Cost of KICS license and annual
updates

KICS price list

$496,000$248,000$235,600$235,600

Ct

Cost of KICS for Networks license
and updates

C1$496,000$248,000$235,600$235,600

Risk adjustment↑10%$545,600$272,800$259,160$259,160

Ctr

Cost of KICS for Networks license
and updates (risk-adjusted)
Three-year total: $1,336,720

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

Three-year present value: $1,202,493

9

ANALYSIS OF COSTSCOST OF PERSONNEL LEARNING AND

Risks. To account for any potential variation across

OPTIMIZING THE PLATFORM

organizations, Forrester adjusted this cost upward by

Evidence and data. The interviewed organization

10%, yielding a three-year, risk-adjusted total PV of

received training after the implementation of KICS for$32,575.

Networks and spent some time learning how to use
the various capabilities and features of the platform3%

Cost of personnel

while optimizing its implementation. Since

learning and optimizing

deployment, 25 personnel spent 40 hours learningand optimizing the platform$32,575.

the platform: 3% of total
three-year benefit PV

three-year costPV

Modeling and assumptions. To quantify this cost,
Forrester has used the same number of personnel
and training hours as the interviewed organization
with 10 people receiving training initially and 5 people
performing ongoing optimization of the platform inYear 1 through Year 3.

Cost Of Personnel Learning And Optimizing The Platform
Ref.

MetricCalculation

InitialYear 1

Year 2

Year 3

D1

Personnel trained and optimizing theplatform

Customerinterview

10

5

5

5

D2

Hours of training needed

Customerinterview

40

40

40

40

D3

Fully-burdened hourly wage forexperienced industrial personnel

payscale.com

$33

$33

$33

$33

Dt

Cost of personnel learning andoptimizing the platform

D1*D2*D3$13,200$6,600$6,600$6,600

Risk adjustment↑10%$14,520$7,260$7,260$7,260

Dtr

Cost of personnel training (riskadjusted)
Three-year total: $36,300

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

Three-year present value: $32,575

10

Financial Summary
CONSOLIDATED THREE-YEAR RISK-ADJUSTED METRICS

Cash Flow Chart (Risk-Adjusted)
Total costs

Total benefits

Cumulative net benefits

Cash
flows

$2.5 M$2.0 M

The financial results calculated in the
Benefits and Costs sections can beused to determine the ROI, NPV, andpayback period for the composite
organization’s investment. Forrester
assumes a yearly discount rate of 10%
for this analysis.

$1.5 M$1.0 M

These risk-adjusted ROI,
NPV, and payback period
values are determined byapplying risk-adjustment
factors to the unadjusted
results in each Benefit andCost section.

$0.5 M-$0.5 M-$1.0 M
InitialYear 1

Year 2

Year 3

Cash Flow Analysis (Risk-Adjusted Estimates)
InitialYear 1

Year 2

Year 3

Total

Present
Value($560,120)($280,060)($266,420)($266,420)($1,373,020)($1,235,068)

Total benefits$0$1,166,392$1,166,392$1,166,392$3,499,175$2,900,644

Net benefits($560,120)$886,332$899,972$899,972$2,126,155$1,665,576

Total costs

ROI
Payback period(months)

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

135%
8.0

11

Appendix A: Total Economic
ImpactTotal Economic Impact is a methodology developed

PRESENT VALUE (PV)by Forrester Research that enhances a company’s
technology decision-making processes and assists

The present or current value ofvendors in communicating the value proposition of(discounted) cost and benefit estimates

their products and services to clients. The TEI

given at an interest rate (the discountmethodology helps companies demonstrate, justify,rate). The PV of costs and benefits feed

and realize the tangible value of IT initiatives to both

into the total NPV of cash flows.

senior management and other key businessstakeholders.

NET PRESENT VALUE (NPV)TOTAL ECONOMIC IMPACT APPROACH
Benefits represent the value delivered to the

The present or current value ofbusiness by the product. The TEI methodology(discounted) future net cash flows given

places equal weight on the measure of benefits andan interest rate (the discount rate). A

the measure of costs, allowing for a full examination

positive project NPV normally indicatesof the effect of the technology on the entire

that the investment should be made,organization.

unless other projects have higher NPVs.

Costs consider all expenses necessary to deliver the
proposed value, or benefits, of the product. The cost
category within TEI captures incremental costs overthe existing environment for ongoing costs
associated with the solution.
Flexibility represents the strategic value that can be

RETURN ON INVESTMENT (ROI)
A project’s expected return inpercentage terms. ROI is calculated by
dividing net benefits (benefits less costs)
by costs.

obtained for some future additional investmentbuilding on top of the initial investment already made.
Having the ability to capture that benefit has a PV
that can be estimated.

DISCOUNT RATE
The interest rate used in cash flow

Risks measure the uncertainty of benefit and cost

analysis to take into account theestimates given: 1) the likelihood that estimates willtime value of money. Organizations

meet original projections and 2) the likelihood thattypically use discount rates between

estimates will be tracked over time. TEI risk factors

8% and 16%.

are based on “triangular distribution.”
PAYBACK PERIODThe breakeven point for an investment.
This is the point in time at which net
benefits (benefits minus costs) equal
initial investment or cost.

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

12

Appendix B: Endnotes
1 Source: “Threat landscape for industrial automation systems, H1 2020,” Kaspersky ICS CERT, September 24

2020.
2 Source: “Cost Of A Security Breach,” Forrester Security Survey, August 2020.
3 Source: “ICS Defense Use Case (DUC),” SANS ICS, December 30, 2014 (https://ics.sans.org/media/ICS-CPPEcase-Study-2-German-Steelworks_Facility.pdf).

THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

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THE TOTAL ECONOMIC IMPACT™ OF KASPERSKY INDUSTRIAL CYBERSECURITY FOR NETWORKS

14