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 (see attached), 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 four European countries found that MSPs are at risk of losing their SMB clients over cybersecurity concerns. More than nine in ten (93 percent) SMBs would consider hiring a new MSP if they offered the right cybersecurity solutions, and nearly one in four SMBs (24 percent) has already changed MSPs in the aftermath of a cyberattack.
Furthermore, SMBs that plan to change MSPs are more likely to have seen or to expect inadequate cybersecurity protections from their current provider, compared with those who plan to stay with the same provider (32 percent vs 27 percent). To make matters more challenging for the MSP, three in five SMBs (62 percent) would hold their provider accountable for an attack even when they don’t outsource any of their cyber security. And, more than four out of five SMBs (81 percent) would consider legal action against their provider in the event of an 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 22 percent more, on average, for the right cybersecurity offering
“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.”
With the majority of SMBs in Europe willing to change their providers for the right cybersecurity offering, the data also highlights how MSPs who can provide and sell that offering stand to gain a sizable proportion of SMB business in the future. More than half of all SMBs surveyed in Europe (54 percent) would pay at least 20 percent more for the right cyber security solution from a new provider.
What’s more, European SMBs are ready to work with MSPs on cybersecurity and invest more to get the right levels of protection. Eight in ten SMBs anticipate that at least half of their cybersecurity needs will be outsourced in five years’ time, and most (80 percent) are planning to invest more in cybersecurity in the next 12 months.
“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 holding a webinar on the research results on April 9, and registration is now open.
