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.
and Unprepared: The State of SMB Cyber Security in 2019,
released today, 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 at www.page.continuum.net/security-research.
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 cyber
security 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
Continuum is the proactive platform for what’s next. With technologies
and integrated services spanning security to backup to monitoring, the
Continuum platform anticipates and tackles MSPs’ next
challenges—enabling them to grow with confidence.
For more information, visit www.continuum.net and
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About Vanson Bourne
Vanson Bourne is an independent specialist in market research for the
technology sector. Their reputation for robust and credible
research-based analysis, is founded upon rigorous research principles
and their ability to seek the opinions of senior decision makers across
technical and business functions, in all business sectors and all major
markets. For more information, visit www.vansonbourne.com.