Cloud

3/26/2019
04:45 PM
Connect Directly
Twitter
RSS
E-Mail
50%
50%

Small Businesses Turn to Managed Service Providers for Security

The average cost of a cyberattack at an SMB is $54,650, a new study shows.

Nearly 90% of small- to midsized businesses (SMBs) would consider hiring a new managed services provider (MSP) if they offered the right cybersecurity solution, and nearly half would pay at least 20% more for the right security solution from a new MSP. 

"We found that SMBs understand that they are not well protected," says Brian Downey, senior director of security product management for Continuum, which collected data from 850 SMBs in the United States, United Kingdom, France, Germany, and Belgium, for its new SMB security report. "And ... they are willing to pay more for the right service and would even trade out an existing MSP."

Nearly 25% of SMBs have already changed MSPs in the aftermath of a cyberattack, he says.

Some 77% of SMBs anticipate that at least half of their cybersecurity needs will be outsourced in five years – and 78% are planning to invest more in cybersecurity in the next 12 months. Downey says SMBs understand what a breach can do to their businesses, and that the average total cost of cybersecurity attacks experienced in the past two years can vary by company size.

For example, the average cost of an attack for a company with 10- to 24 employees runs $38,437. That number increases to $70,357 for companies with 500- to 1,000 employees. The average cost across all the SMBs surveyed was $54,650.  

"There's a growing recognition among SMBs that a security event can impact customer loyalty," Downey says. "In fact, we found that 89% of SMBs surveyed saw security as one of their top five business priorities. As consumer awareness of security has increased following the 2016 election, SMB owners realized they need to focus on security so they can protect their companies."

Martha Vazquez, senior research analyst for infrastructure services at IDC, says there's no question SMBs are becoming more security-aware. "SMBs are still looking at price, but they wouldn't go with a Secureworks or IBM" because they are out of their price range, she says. "However, they will pay for providers that offer more advanced threat detection and analytics. They're looking at the security talent the providers have, plus the 24x7 support." 

Related Content:

 

 

Join Dark Reading LIVE for two cybersecurity summits at Interop 2019. Learn from the industry's most knowledgeable IT security experts. Check out the Interop agenda here.

Steve Zurier has more than 30 years of journalism and publishing experience, most of the last 24 of which were spent covering networking and security technology. Steve is based in Columbia, Md. View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Russia Hacked Clinton's Computers Five Hours After Trump's Call
Robert Lemos, Technology Journalist/Data Researcher,  4/19/2019
Tips for the Aftermath of a Cyberattack
Kelly Sheridan, Staff Editor, Dark Reading,  4/17/2019
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
5 Emerging Cyber Threats to Watch for in 2019
Online attackers are constantly developing new, innovative ways to break into the enterprise. This Dark Reading Tech Digest gives an in-depth look at five emerging attack trends and exploits your security team should look out for, along with helpful recommendations on how you can prevent your organization from falling victim.
Flash Poll
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2019-11378
PUBLISHED: 2019-04-20
An issue was discovered in ProjectSend r1053. upload-process-form.php allows finished_files[]=../ directory traversal. It is possible for users to read arbitrary files and (potentially) access the supporting database, delete arbitrary files, access user passwords, or run arbitrary code.
CVE-2019-11372
PUBLISHED: 2019-04-20
An out-of-bounds read in MediaInfoLib::File__Tags_Helper::Synched_Test in Tag/File__Tags.cpp in MediaInfoLib in MediaArea MediaInfo 18.12 leads to a crash.
CVE-2019-11373
PUBLISHED: 2019-04-20
An out-of-bounds read in File__Analyze::Get_L8 in File__Analyze_Buffer.cpp in MediaInfoLib in MediaArea MediaInfo 18.12 leads to a crash.
CVE-2019-11374
PUBLISHED: 2019-04-20
74CMS v5.0.1 has a CSRF vulnerability to add a new admin user via the index.php?m=Admin&c=admin&a=add URI.
CVE-2019-11375
PUBLISHED: 2019-04-20
Msvod v10 has a CSRF vulnerability to change user information via the admin/member/edit.html URI.