Cybersecurity demands of small- and medium-sized businesses (SMBs) have become both a major risk and revenue opportunity to MSPs, according to research commissioned by Continuum through Vanson Bourne, an independent market research company based in the U.K.
Nearly nine in ten (89 percent) SMBs surveyed in the U.S. 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 says 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 of 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.”
As for MSPs who specialize in the delivery of effective security, 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. SMBs also state they are willing to pay 27 percent more, on average, than they currently pay for the right cyber security offering.
Commissioned by Continuum, “Underserved and Unprepared: The 2019 State of SMB Cyber Security Report” was researched by Vanson Bourne between January and March 2019. Eight hundred fifty 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 sectors.
The best news here is not only that SMB leaders recognize the value of cybersecurity. They are also ready to invest more heavily in the protection of their businesses. Conversely, MSPs who can deliver effective protections are far more apt to prosper than those that do not.