Until recent years, most small and medium-sized businesses (SMBs) harbored the misconception that they were safe from cyber attacks. Ransomware and data breaches were seen as incidents that only happened to large enterprises with very deep pockets and expansive operations. The only attacks that made the news were ones that targeted well-known organizations, and this was assumed to be the extent of cybercrime.
These attitudes have been changing with increasing awareness about the frequency and debilitating consequences of cyber attacks, and the stringent data privacy requirements that apply to all businesses – regardless of size.
According to the 2024 “State of SMB Cybersecurity” survey by ConnectWise and Vanson Bourne, 78% SMBs today are worried about cyber attacks, 83% are planning to invest more in cybersecurity over the next year, and 76% percent say that their organization would be unable to deal with cybersecurity issues effectively without external support.
SMB Cybersecurity – Double-Digit CAGR
Between 2024 and 2032 the SMB cybersecurity market in the US is estimated to grow at a CAGR of 13.2%, higher than the overall US cybersecurity CAGR of 12.3%. “According to the Hiscox report, around 41% of SMEs reported cyber-attacks in 2023, up from 38% in 2022.”
Globally, the cybersecurity market is projected to grow from USD 193.73 billion in 2024 to USD 562.72 billion by 2032, at an estimated CAGR of 14.3%. In the global analysis, too, the SMB market is expected to grow at a higher CAGR than large enterprise security owing to increasing risk, remote work and the need for endpoint security, compliance needs, and greater awareness about cyber threats and their consequences.
This is borne out by what we’re learning from our MSP and MSSP partners who serve small businesses.
Increasing Demand for Cybersecurity Solutions in the SMB Segment
In a recent interview, Enhanced IT – a large MSP in the UK and a CYRISMA partner – told us that their team is seeing a significant shift in the kinds of services they’re approached for. In the past, security services were almost always an afterthought for Enhanced IT customers and prospects, but they’re now starting to see more direct enquiries about their security and compliance solutions.
Another CYRISMA partner – Axe Creatives – is using our platform to offer foundational security services to both existing and new SMB customers. This, again, is due to a shift in the market and the demand for security services, with a large number of MSSPs now tailoring solutions for the SMB segment. Additionally, with data privacy compliance requirements being mandatory for SMBs in a number of regulated sectors, businesses need to make sure they’re checking all the required boxes.
- End-customer awareness about cybersecurity – SMBs, like all businesses, sell products and services to other businesses and individuals, and as awareness about security incidents and their repercussions increases, their prospects ask more questions about cybersecurity and their vendors’ existing posture and incident preparedness. Being able to present assessment reports and compliance certificates that demonstrate effective risk management and data protection to their prospects gives SMBs an edge over their competitors.
- Stringent cyber insurance requirements – There is also increasing pressure on SMBs because of more stringent cyber insurance requirements. No longer just a checkbox exercise, getting cyber insurance now involves brokers and underwriters meticulously verifying each bit of information provided by organizations, regardless of size. This requires maintaining a strong cybersecurity posture on an ongoing basis and providing proof that essential security and privacy controls are properly implemented.
- Supply-chain partner questionnaires – A common tactic used by cybercrime gangs is to compromise SMBs with weak security controls, unpatched vulnerabilities or exposed entry points to gain access to larger organizations with a stronger security posture. SMBs that are part of larger supply chains regularly get security questionnaires from their larger supply chain partners to make sure they are following risk management best practices and are compliant.
- Compliance mandates apply to SMBs too – Data privacy regulations (e.g., HIPAA, PCI DSS, GDPR, CMMC and more) and compliance standards are constantly evolving, and SMBs in regulated sectors need to ensure they’re meeting all requirements. Like with cyber insurance, compliance cannot be a checkbox exercise. It is not optional and non-compliance can be costly and damaging to businesses’ reputation.
- Bad actors targeting of SMBs to avoid scrutiny – As law enforcement action against ransomware gangs has increased, cybercriminals have been forced to change tactics and go after smaller businesses that won’t attract media attention or government action. Attacks against SMBs aren’t covered in the news and fly under the radar – something that, for a long time, contributed to the misconception that small businesses were safe from attacks. However, this is changing with more awareness and experience.
Tips for MSPs and MSSPs Offering Cybersecurity Services to SMBs
Cybersecurity expertise is difficult to acquire. For SMBs looking to put basic security controls in place, it is simply not feasible to hire experts, build security infrastructure in-house and dedicate resources to running risk management and security programs. The most straightforward solution is to outsource security to managed service providers (MSPs).
Because demand for security services in the SMB segment is growing quickly, now is a great time for MSPs and MSSPs to put plans, processes and service packages in place to protect their SMB clients.
Here’s a list of tips and best practices for MSPs and MSSPs looking to expand their security services with a focus on reducing cyber risk for SMBs:
- Prioritize cyber risk education: Continuously educate SMBs about cyber risks through newsletters, webinars, blog posts, and social media campaigns. This ongoing education is crucial for raising awareness and fostering a security-conscious culture among your SMB clients and prospects.
- Use consolidated, multi-feature platforms: Use consolidated all-in-one platforms to reduce costs both for you as a service provider and for your SMB clients. This will also increase efficiency and enable you to cover essentials without the complexity of managing multiple tools.
- Build strong client relationships: Schedule regular check-ins to build strong relationships with your SMB clients. These meetings can be great opportunities for you to discuss their security posture, address concerns, identify new needs, and inspire trust.
- Offer tiered service offerings: Provide a range of service levels, including co-managed, fully-managed, and self-managed options with support so your SMB prospects can choose the level of engagement that best suits their needs and budget.
- Create service bundles: Bundle related services such as vulnerability management, data loss prevention, and compliance audits to provide more value at more attractive pricing to your end customer, while increasing your own revenue margins.
- Leverage certified consultants: For more security-conscious customers in regulated sectors, consider offering specialized services from certified consultants, such as those with CISSP or CISA certifications. This will enhance the value you’re providing and also command higher service fees.
- Tailor solutions to client needs: Conduct thorough needs assessments to understand each SMB’s unique security requirements so you can tailor your services accordingly. A personalized approach will help you demonstrate a commitment to client needs and build trust.
- Provide comprehensive compliance guidance: If you’re planning to offer compliance assessments, make sure your sales team knows about the specific compliance requirements for different industries and sectors, and you are able to guide SMBs about relevant compliance regulations, the potential costs of non-compliance and the step-by-step process to meet compliance. This will detangle the compliance process for your prospects and position you as an expert who can get them closer to meeting their compliance needs in a smooth manner.
- Offer a free proof of value: A free proof of value such as a free security assessment, or a limited-time trial of specific services will allow your SMB prospect to experience the value of your services firsthand and build trust before they are ready to commit to a longer-term engagement.
- Consider starting with limited-time professional services: Offer initial services as a limited-time professional engagement to demonstrate your expertise and build a relationship with the client before transitioning to a longer-term managed services agreement.
- Keep services affordable by focusing on essentials: By focusing on the most essential security measures and offering packages that address the common threats faced by SMBs, you can keep your SMB-specific services affordable and target a wider range of businesses. In our founders’ many years of serving SMB customers, they’ve observed that implementing a few basic controls like sensitive data discovery, data classification, vulnerability and patch management, and secure configuration can protect organizations against a vast majority of cyber threats.
- Adopt flexible pricing models: If possible, offer flexible, per-endpoint-based pricing which can be scaled up or down as your clients’ needs evolve.
How CYRISMA can help
The CYRISMA Cyber Risk Management Platform was developed with the vision of making cybersecurity accessible to all businesses. The platform brings together multiple tools to enable service providers to build strong risk reduction programs for their SMB clients while keeping costs low and processes simple. We’re always believed that building a strong cybersecurity program doesn’t have to be prohibitively expensive and CYRISMA has made affordable, effective and strong security a reality.
Platform features include vulnerability and patch management, sensitive data scanning, secure configuration scanning, cyber risk quantification, cybersecurity compliance (covering multiple standards), dark web monitoring, and more!
Explore CYRISMA and BOOK A DEMO here.