The firm's research is based on interviews with security professionals, mostly from Fortune 1000 companies, and institutional investors, David Taylor, chief research officer, said in a presentation at last week's RSA Conference in San Francisco.
Security spending is tied to compliance with new regulations, he said. Professionals also plan to spend more on infrastructure protection rather than perimeter protection.
"Perimeter security still is a focus of security spending but a shift is coming," Taylor said. "They're still upgrading, but by and large, there aren't many new projects. What they're talking about is architecture. People feel they've neglected internal security."
Companies are interested in wireless LAN security and intrusion prevention, but not keen on biometrics, he said. Security appliances are a hot item, but people expect them to be more turnkey and are "a little disappointed" when they get them, he added.