Partner content: About 50% of cyberattacks are aimed at SMBs which are at significant risk of financial loss, reputational damage and even going out of business
Small and medium-sized businesses (SMBs) are under increasing pressure to protect their operations from cyber threats. Allot and Coleman Parkes recently conducted a survey of 450 SMBs worldwide. The survey explores the critical cybersecurity challenges that SMBs face and how communications service providers (CSPs) can play a pivotal role in helping them navigate these threats.
By addressing the unique needs of SMBs with affordable and efficient cybersecurity solutions, CSPs can not only safeguard their clients but also create new revenue streams and strengthen customer loyalty.
Growing cybersecurity challenge
Cybersecurity threats such as phishing, malware, and ransomware are not confined to large corporations. SMBs, often viewed as less secure than larger enterprises, are increasingly becoming the target of sophisticated attacks. According to a recent study, 60% of SMBs identified cyber threats as a top concern, and a staggering 64% experienced a cybersecurity incident in the previous year. Despite this awareness, many SMBs are ill-prepared to tackle these threats due to limited budgets and a lack of technical expertise.
The survey revealed that while SMBs understand the importance of cybersecurity, their primary concern is balancing cost with performance. Nearly half of the respondents (48%) prioritized performance, while 43% focused on cost when choosing a cybersecurity solution. Unfortunately, the most robust solutions often require a substantial financial investment or technical expertise, which many SMBs simply do not have.
This creates an opportunity for CSPs to step in with cost-effective, easy-to-deploy solutions. SMBs are increasingly willing to trust their service providers with cybersecurity, especially when these solutions can be seamlessly integrated into existing IT or mobile service packages.
CSPs – trusted cybersecurity partners
One significant finding from the survey is the growing trust that SMBs are placing in CSPs for their cybersecurity needs. When asked how they acquired their most recent cybersecurity solution, SMBs most frequently cited managed service providers (MSPs) as their go-to option, favoring this route three times more often than IT consultants. This shift toward MSPs reflects a broader trend where SMBs are looking for a one-stop shop for their cybersecurity needs, preferring to bundle these services with existing offerings.
However, while trust in service providers is growing, only 36% of SMBs currently use cybersecurity solutions provided by CSPs. This is up from 26% in the previous year but still leaves a significant gap. Two-thirds of SMBs are not yet utilizing the cybersecurity services offered by their CSPs, presenting a major opportunity for telecom providers to expand their market share.
For CSPs, the key to unlocking this potential lies in offering simple, budget-conscious, and effective cybersecurity solutions. SMBs are looking for protection that requires minimal effort on their part, both in terms of implementation and maintenance. By leveraging their position as providers of internet connectivity, CSPs can offer network-native cybersecurity solutions that intercept threats before they reach the end-user. These solutions are zero-touch, meaning that they do not require SMBs to install or manage any software, making them particularly appealing to businesses with limited technical resources.
Cybersecurity budget dilemma
Budget constraints are a significant challenge for SMBs, with the survey revealing that the average SMB allocates just $1,400 annually to cybersecurity. While this may seem like a small figure compared to the vast sums spent by larger corporations, it is not necessarily a deal-breaker. SMBs are increasingly open to bundled solutions that provide essential protection at a reasonable cost.
In fact, when asked about their preferred method of purchasing cybersecurity solutions, 62% of SMBs expressed a preference for bundled services over standalone offerings. This presents a golden opportunity for CSPs to provide cybersecurity as part of a larger IT or mobile service package. By doing so, CSPs can offer a compelling value proposition that addresses both the cost and performance concerns of SMBs.
Moreover, 65% of SMBs indicated that they are likely to purchase or upgrade their cybersecurity solution within the next 12 months. This figure rises to 73% in the UK, demonstrating a clear demand for enhanced protection. Additionally, 92% of respondents reported having at least a basic understanding of network-based security solutions, further indicating that SMBs are ready to invest in services that are both easy to use and effective in combating cyber threats.
Regulatory compliance
In the world of SMBs, regulatory compliance is becoming an increasingly important factor in cybersecurity decisions. Laws such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) impose strict requirements on businesses that handle sensitive data, and failure to comply can result in hefty fines and reputational damage.
However, many SMBs are woefully unprepared to meet these compliance standards. The survey revealed that only one in three SMBs feels fully prepared for changes in cybersecurity regulations, and just 24% have hired compliance experts to help them navigate these challenges. This lack of preparedness puts SMBs at risk of non-compliance, which could have serious consequences for their business continuity.
CSPs can play a crucial role in helping SMBs address their compliance needs by offering network-native cybersecurity solutions that include the necessary safeguards to meet regulatory requirements. These solutions can help SMBs protect customer data, secure digital transactions, and ensure that they are in line with the latest legal standards, all without requiring them to invest in costly in-house expertise.
Network-native cybersecurity
A network-native cybersecurity solution designed specifically for SMBs is integrated directly into the network of a CSP. This gives the CSP the ability to intercept threats before they reach the end user’s device. Importantly, it requires no technical expertise from the SMB to deploy or maintain, making it an ideal choice for businesses with limited resources.
At an average price point of $10 to $20 per month for the SMB, this solution offers robust protection at an affordable rate. For CSPs, offering a zero-touch cybersecurity service not only provides an additional revenue stream but also enhances customer loyalty by positioning the provider as a trusted partner in safeguarding the business.
The SMB cybersecurity market is ripe with opportunity for CSPs. With cyber threats on the rise and SMBs struggling to find affordable, effective solutions, telecom providers are uniquely positioned to fill this gap. By offering bundled, budget-conscious cybersecurity solutions that require minimal effort from the SMB, CSPs can not only protect their customers but also generate recurring revenue and strengthen their brand loyalty.
You can learn more about zero-touch, network-native cybersecurity services for SMBs here.
About the author
Vikram Singh is Senior Director of Cyber Marketing at Allot
