Cybersecurity demands of small- and medium-sized businesses (SMBs) have become both a major risk and revenue opportunity to managed service providers (MSPs). This is according to research conducted by Vanson Bourne and commissioned by Continuum, the proactive platform that integrates intelligent software with expert services for MSPs to scale dynamically and protect their clients.
Underserved and Unprepared: The State of SMB Cyber Security in 2019, recently released, draws on data collected in 2019 from 850 SMBs across the United States, United Kingdom, France, Germany, and Belgium. In addition to the risks for MSPs, the report also highlights the significant revenue opportunity for providers that deliver the cybersecurity services and solutions SMBs need to protect their businesses.
Vanson Bourne’s research in the United States found that MSPs are at risk of losing their SMB clients if they don’t provide competitive, comprehensive solutions to their clients. Nearly nine in ten (89 percent) SMBs surveyed would consider hiring a new MSP if they offered the right cybersecurity solution, and nearly one in four SMBs (24 percent) has already changed MSPs in the aftermath of a cyberattack.
To make matters more challenging for MSPs, the report highlights that clients will hold providers accountable for security issues even if their MSP is not currently providing them with cybersecurity solutions. Three in four SMBs who do not currently outsource cybersecurity would still hold their provider accountable in the event of a cyber attack.
MSPs that attempt to compete on price are likely to find that this will not be enough to retain clients that are concerned about cybersecurity, as SMBs planning to change providers are willing to pay 24 percent more on average for the right cybersecurity offering. Nearly half of all SMBs surveyed in the US (47 percent) would pay at least 20 percent more for the right cybersecurity solution from a new provider.
“We have seen first-hand that the number one reason MSPs lose business today is over concerns about cybersecurity, and this data now proves it,” said Michael George, CEO, Continuum. “Providers across North America and Europe should heed the clear warning presented by these findings. 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.”
While this research highlights the risks for MSPs who don’t meet the security demands of SMBs, it also paints an optimistic picture for those MSPs who do offer and sell effective cybersecurity services. SMBs recognize the need for cybersecurity, and are ready to work with and invest more with MSPs to get the right levels of protection. 77 percent of SMBs anticipate that at least half of their cybersecurity needs will be outsourced in five years’ time, and 78 percent are planning to invest more in cybersecurity in the next 12 months. What’s more, SMBs state they are willing to pay 27 percent more, on average, than they currently pay for the right cyber security offering.
“SMBs are not just looking for cybersecurity protections, they are ready to invest more to protect their businesses,” said Brian Downey, Senior Director, Security Product Management at Continuum. “It’s clear from today’s report that there is an economic opportunity for MSPs that get cybersecurity right, as they stand to not only win business from providers that don’t, but also increase their revenue streams from their SMB clients and have a better chance of retaining their existing client base. If MSPs can deliver the right cybersecurity solutions to their end-clients, they will hold the competitive advantage in the SMB market.”
Underserved and Unprepared: The State of SMB Cyber Security in 2019 is available for download here. Continuum and Vanson Bourne will be diving deeper into the research results in a webinar on April 9, and registration is now open.
Commissioned by Continuum, the 2019 State of SMB Cyber Security report research was conducted by Vanson Bourne between January and March 2019. 850 IT and business decision-makers who have involvement in cybersecurity in their organization were surveyed in the US, UK, France, Germany, and Belgium. Respondents’ organizations have between 10 and 1,000 employees and were selected across a number of core industry sectors.