Revenue cannibalization happens when one sales channel, offer, or product tier takes revenue away from another. In cyber security, this often appears when a vendor sells the same protection through direct licenses, managed services, cloud marketplaces, or bundled platform deals. A cheaper bundle or subscription can increase reach, but it may also reduce higher-margin standalone sales. That makes it important for analysts who want to understand whether a security product is growing because demand is real, or because customers are being shifted into a different purchase path.
For defenders, cannibalization matters because pricing and packaging affect adoption, telemetry, and long-term funding for controls. A free tier may displace paid upgrades, while an enterprise bundle may replace separate tools such as endpoint protection or phishing filters. Attackers can benefit indirectly when organizations change procurement to save money and end up with weaker coverage or slower patching. The term is therefore a business concept, but it has real security consequences: it shapes how protections are bought, deployed, and maintained.