Security concerns in IT services have led to cuts in the amount spent on innovation, the RSA's president of security has asserted.

IT security spending could run to more than £28 billion by the end of the year, according to IDC figures quoted by the RSA's Arthur Coviello, IT Pro reports

Speaking at EMC World 2008, Mr Coviello commented that businesses were shying away from innovative technology because of security concerns.

"A perfect storm has developed around us," said Mr Coviello.

"We live in an era of unprecedented innovation that's enabled by the openness and connectivity of the internet."

However, he added, at the same time criminal sophistication is increasing and more malware than legitimate software will be developed this year.

Mr Coviello concluded that infrastructure changes were the only way forward as businesses are tired of solving outdated security issues.

In related news, IT security firm McAfee reported earlier in the month what it described as the most significant malware outbreak in three years, after more than 500,000 file-sharing computers were affected by a Trojan horse masquerading as a media file.

According to a recent survey by Connect, the two biggest IT headaches for businesses were 'everyday hassles with IT' (37 per cent) and 'security concerns' (32 per cent) In a recent survey of SMEs for Connect, the two most important benefits of outsourcing were 'guaranteed response times' and 'allowing in-house IT staff to concentrate on more strategic issues'