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Enterprises Embrace Modern AI-Powered Cybersecurity Platforms as Traditional Perimeters Become Obsolete, ISG Report Finds

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A new research report from Information Services Group (ISG), a global AI-centered technology research and advisory firm, indicates that enterprises are moving beyond traditional cybersecurity architectures to adopt more flexible tools for defending distributed operations. The 2025 ISG Provider Lens® global Cybersecurity — Services and Solutions report highlights a worldwide increase in the use of three broad-based security platforms: Identity and Access Management (IAM), Extended Detection and Response (XDR), and Secure Service Edge (SSE), all of which are advancing through the integration of AI and other technologies.

According to ISG, traditional security perimeters are now considered obsolete, prompting enterprises to integrate defenses throughout their digital environments. These modern approaches are designed to provide organizations with capabilities to constantly adapt to evolving threats. Doug Saylors, partner and leader of ISG Cybersecurity, stated, “Traditional security perimeters are obsolete, so enterprises are integrating defenses throughout their digital environments. Modern approaches are gaining new capabilities that let organizations constantly adapt to evolving threats.”

For IAM, a growing number of enterprises are incorporating biometric authentication techniques, such as facial recognition and fingerprint scanning. Decentralized identity systems, which leverage blockchain technology to give users control over their digital identities, are also emerging. Companies shifting to cloud-first architectures are increasingly adopting identity as a service (IDaaS), which IAM vendors are enhancing for seamless integration with SaaS applications, as well as hybrid and multicloud infrastructures.

Enterprises previously reliant on siloed threat detection tools are transitioning to XDR for automated analytics that cover endpoints, identities, networks, and cloud workloads. XDR has evolved from endpoint detection and response (EDR) to become a central component of enterprise security operations, encompassing proactive threat hunting, rapid containment, and coordinated responses. Organizations are now seeking open, modular XDR architectures that can integrate with other security tools, often incorporating behavioral analytics to detect insider threats based on deviations from typical user behavior.

To reduce breach risks and protect sensitive data, enterprises are also adopting zero trust principles, which require verifying every user and device before granting access. SSE is being implemented to enforce these principles through cloud-based security functions, including continuous monitoring and verification of sessions and application-level controls focused on resource protection rather than network protection.

ISG notes that the role of AI is expanding across all three emerging security approaches. AI enables IAM solutions to automatically adjust access controls based on real-time analysis of unusual user behavior. Similarly, AI and machine learning (ML) power many detection, correlation, and prioritization engines within XDR platforms. Providers are also embedding AI-enabled threat detection in SSE solutions for real-time policy enforcement. Yash Jethani, principal analyst at ISG and an author of the report, commented, “Enterprises are recognizing that zero trust principles are crucial to securing modern, distributed operations. Working with service providers and solution vendors, they are building flexible, identity-centric approaches that will allow them to adapt to new threats and requirements.”

Beyond these trends, the report examines the use of IAM for compliance with complex regulatory standards and the expansion of XDR solutions from IT to operational technology in industrial systems.

The 2025 ISG Provider Lens® global Cybersecurity — Services and Solutions report evaluates the capabilities of 61 providers across three quadrants: Identity and Access Management, Extended Detection and Response, and Security Service Edge. Broadcom, Fortinet, IBM, Microsoft, and Palo Alto Networks were named Leaders in two quadrants each. Leaders in one quadrant each include Cato Networks, Check Point Software, Cisco, CrowdStrike, CyberArk, Forcepoint, ManageEngine, Netskope, Okta, One Identity (OneLogin), Ping Identity, SailPoint, Saviynt, SentinelOne, Trellix, Trend Micro, Versa Networks, and Zscaler. BeyondTrust, HPE (Aruba), and Sophos were recognized as Rising Stars, indicating a promising portfolio and high future potential.

PwC was named the global ISG CX Star Performer for 2025 among cybersecurity service and solution providers, achieving the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program.

ISG is a global AI-centered technology research and advisory firm, partnering with over 900 clients, including 75 of the top 100 enterprises worldwide. Established in 2006, the firm provides proprietary market data and provider ecosystem knowledge. The ISG Provider Lens® Quadrant research series combines data-driven research with insights from ISG’s global advisory team, aiding enterprises in selecting sourcing partners and validating market knowledge.

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