With the increasing complexity of IT systems and the benefits of outsourcing IT services, the use of managed service providers (MSPs) has grown significantly among organizations, from SMBs to enterprises.
At the same time, many MSPs are seizing the opportunity as a “one-stop-shop” for their clients by offering an all-inclusive tech stack that covers the bases for their clients’ needs. One area that continues to show strong interest is cybersecurity managed services.
In this blog, we will discuss how vendors can support MSPs’ evolving expectations to meet the growing demand for cybersecurity managed services and take their channel business to the next level.
Cybersecurity Managed Services Market Size to Grow
Amid increasing sophistication of cyber threats and the shortage of dedicated cybersecurity personnel, the global cybersecurity managed services market is projected to grow from USD 13.52 billion in 2022 to USD 25.77 billion by 2029, at a CAGR of 9.7% [1].
Organizations that have started to work with an MSP for general IT workloads are likely to want to work with the same partner to address their cybersecurity needs. However, many MSPs lack the expertise to provide comprehensive cybersecurity services, and this is where vendors come in to advise MSPs in growing their cybersecurity portfolios.
By working closely with MSPs and supporting their efforts to provide cybersecurity services, vendors can benefit from the growing demand for cybersecurity managed services while also taking advantage of MSPs’ existing client bases and their experience in certain industries.
How Can Vendors Support MSPs to Meet Cybersecurity Demand?
(1) Improve MSPs’ Cybersecurity Posture
Cyber threats represent a huge challenge to organizations across industries, and they are now increasingly bringing cybersecurity to the forefront of decision-making. For MSPs, this not only translates to a compelling need to expand and enhance their cybersecurity offerings but also to invest in strengthening their own cybersecurity posture [2].
A 2022 study showed that 90% of MSPs have been hit with a successful cyberattack, with the total number of attacks increasing to an average of 18 per month [3]. Alarmingly, the study also revealed that many MSPs have yet to implement basic security measures to protect themselves against cyberattacks. For example, most MSPs offer two-factor authentication (2FA) to their clients, but only 40% have applied it to their systems.
Increasing cyberattacks and security regulations have brought MSPs under more intense scrutiny over their client and internal security. Because MSPs are often connected to the environments of multiple clients, it makes them an attractive target for cybercriminals to use as springboards to infiltrate client networks. A successful breach can provide access to hundreds or even thousands of networks and create a domino effect of damage, including financial loss, business interruption, and reputational damage for the victims.
As the threat landscape continues to evolve, MSPs must remain vigilant and take proactive steps to protect both their networks and clients. This means that MSPs must have a reliable cybersecurity system in place, and vendors can help MSPs better defend themselves against cyber threats by empowering them with the right solutions that boost their cybersecurity posture.
(2) Address Cyber Insurance Requirements
The growing frequency and sophistication of cyberattacks, especially ransomware, has many organizations looking at cyber insurance, which offers financial protection when faced with the consequences and damages of a cyber incident.
Unfortunately, cyber insurance has grown more costly and become more difficult to acquire. Premiums for cyber coverage increased by over 50% in 2022 [4], and insurance providers are requiring security controls and processes to qualify for a cyber insurance policy, such as multi-factor authentication (MFA) for all privileged and non-privileged accounts. Given this, organizations are requesting more support from MSPs for cyber insurance and compliance, which, in turn, opens the door for vendors to have additional conversations with their MSPs on expanding their security portfolio to address clients’ cyber insurance requirements.
Just like any organization, MSPs also need to be protected against financial losses from cyberattacks, as demonstrated in the Kaseya ransomware attack [5]. Cyber insurance allows an MSP to provide services to a client without taking on any more risk than what has been transferred to the insurance company. However, MSPs do not always have a thorough understanding of the cyber insurance requirements, in this case, security vendors can act as consultants and provide clarity to MSPs looking for a good policy [6].
(3) Cater to Emerging Cybersecurity Needs
The world of cybersecurity is dynamic, with new threats emerging as quickly as technology develops, and organizations need to continue to keep pace with the evolving cyber threat landscape to prevent exploitation by bad actors. Therefore, to remain competitive in the cybersecurity managed services market, MSPs need to understand what their clients’ biggest cybersecurity challenges are so that they can develop and offer the right solutions.
As organizations invest more heavily in cybersecurity, MSPs are facing pressure to expand the portfolio of cyber solutions they offer to meet the needs of an increasingly demanding client base. However, expectations of MSPs have changed [7]; many organizations now look to MSPs to provide holistic cybersecurity services, rather than one or two product types. Because of this, MSPs are inclined to partner with cybersecurity vendors that can help them cater to the emerging needs of their client bases. MSPs typically look for the following:
- Unified cybersecurity platform
- Simple admin and user experience
- Automation and cloud capabilities
- Enhanced flexibility and efficiency in workflows
- Support for passwordless and Zero Trust architecture
- Reliable and comprehensive services to support MSPs
- Compliance with security regulations and frameworks
- Forward-thinking improvements
To support MSPs, vendors need to stay up to date on emerging threats and vulnerabilities and invest in enhancing and developing service offerings that address these challenges and reduce cybersecurity risk.
Unified Cybersecurity Platform for MSPs: PortalGuard IDaaS
The ideal cybersecurity solution for MSPs should not only cater to their unique needs and workflows but also enable them to differentiate themselves as leaders in this space.
PortalGuard IDaaS for MSPs and MSSPs is built to provide the highest levels of cybersecurity without the budget-breaking cost of most top-tier solutions, allowing MSPs to gain a true advantage in the market by offering clients unrivaled security at a cost they can afford.
With PortalGuard IDaaS, MSPs can benefit from greater authentication flexibility, improved admin experience, and lower TCO (total cost of ownership). More importantly, PortalGuard IDaaS can be implemented to help MSPs and their clients improve their cybersecurity posture, meet cyber insurance requirements, and cater to emerging cybersecurity needs.
Learn More About PortalGuard IDaaS for MSPs
Download the PortalGuard IDaaS for MSPs & MSSPS data sheet for a full overview, features, and technical specifications. We also encourage you to reach out directly if you would like to speak to our team about your cybersecurity challenges.
References
- https://www.fortunebusinessinsights.com/cyber-security-managed-services-market-106883
- https://dataconomy.com/2023/04/25/msp-cybersecurity-what-you-should-know/
- https://assets.n-able.com/m/44d1cd1c896a54e7/original/State-of-the-Market-The-New-Threat-Landscape-Whitepaper.pdf
- https://www.fitchratings.com/research/insurance/us-cyber-insurers-see-favorable-premium-growth-results-in-2023-13-04-2023
- https://www.cisa.gov/news-events/news/kaseya-ransomware-attack-guidance-affected-msps-and-their-customers
- https://connect.comptia.org/blog/10-things-msps-should-know-about-cybersecurity-insurance
- https://www.channelinsider.com/news-and-trends/msp-customer-expectation-changes/
