Cybersecurity remains one of the most challenging issues for small business owners. And the problem leads small business owners to seek out managed service providers to present them with solutions.
But a new report from Continuum says the state of cybersecurity among small businesses in 2019 still needs to improve. The data suggests great opportunities for service providers who offer cyber security as part of their package. And predicts troubles for those who don’t.
The reason MSPs are so important for small businesses is many providers offer a one-stop shop for all things IT. However, some providers don’t include cyber security. And as the report reveals, SMBs are holding MSPs accountable when a security breach takes place, whether they provide security solutions or not.
In the press release, Michael George, CEO, Continuum, addressed this very issue in the press release. George said, “Businesses expect to be protected by their MSPs, and are ready to pay more for that protection – whether from their existing MSP or by switching to a provider that promises a better solution.”
Opportunities for Managed Service Security Providers
Businesses now have a better understanding of the digital ecosystem they operate in and the cybersecurity threats they face. The increased awareness has resulted in looking for and implementing the best system possible to protect their digital assets.
For MSPs providing cyber security as part of their service, this means more opportunities. George said, “If MSPs can deliver the right cybersecurity solutions to their end-clients, they will hold the competitive advantage in the SMB market.”
In the US close to half or 47% of SMBs said they would pay at least 20% more from a new provider if they have the right cyber security solution. Overall small businesses are willing to pay 24% more on average for the right cyber security solution.
An even more startling finding is 93% would consider moving to a new provider if they have the right cyber security offering.
The growth opportunity for MSPs providing cybersecurity is on the upside. The report says 77% of the businesses in the survey expect to outsource at least half of their cybersecurity needs in five years’ time. In the near term, 78% are planning to invest more in cybersecurity in the next 12 months.
Worsening Cybersecurity Threat
Cyber attacks cost small businesses in the survey $53,987 on average. Large organizations lost more money.
Companies with 10-49 employees lost $41,269 and those with 50-249 employees were in the hole for $48,686. Those with 250-1,000 employees ended up losing $64,085 per incident.
The cyber threat landscape is getting worse. The good news is small businesses are more aware of this fact, but not everyone is.
In the survey, more than 6 in 10 or 62% of the organization don’t have an in-house expert to properly deal with security issues. Only 41% currently have cybersecurity experts in-house.
Continuum commissioned Vanson Bourne to conduct the 2019 State of SMB Cyber Security report research. It was carried out between January and March 2019.
A total of 850 IT and business decision makers involved in cybersecurity as part of their organization took part in the survey. The organizations represented a number of core industries across different sectors in the US, UK, France, Germany and Belgium