Insights for CSPs from The Cybersecurity Survey of SMBs
Small and Medium-sized Businesses (SMBs) are increasingly finding themselves in the crosshairs of cybercriminals. As digital threats grow in sophistication, so too does the urgency for SMBs to protect their operations. However, many SMBs struggle to balance performance, cost, and ease of use when selecting cybersecurity solutions. This is where Communications Service Providers (CSPs) have a significant opportunity to step in, offering network-native solutions that meet the unique needs of SMBs. By doing so, CSPs can play a critical role in securing the digital infrastructure of small businesses while opening new avenues for revenue growth.
The SMB Cybersecurity Survey
Cybersecurity is a top concern for SMBs, with 60% identifying threats like phishing, malware, and ransomware as significant risks, according to the MetLife/U.S. Chamber of Commerce Small Business Index for Q1 2024. These concerns are justified. Data from a recent Allot survey revealed that 64% of SMBs had experienced a cybersecurity incident in the previous year. With limited resources, SMBs often lack the technical expertise and budget needed to implement robust protection, leaving them vulnerable to a wide range of digital threats.
In Allot’s most recent survey of 450 SMBs worldwide, we found that while SMBs are aware of the risks they face, they are frequently constrained by two key factors: performance and cost. Nearly half of the respondents (48%) prioritized performance when choosing a cybersecurity solution, while 43% focused on cost. Unfortunately, the most advanced solutions that provide strong protection often come with hefty price tags, making them inaccessible to many SMBs.
CSPs: The Trusted Partner for SMB Cybersecurity
One of the more promising findings from the survey is the growing trust SMBs are placing in managed service providers (MSPs) and CSPs for their cybersecurity needs. In fact, more SMBs are turning to service providers than ever before, with MSPs being chosen three times more often than IT consultants for cybersecurity solutions. This trend is good news for telecom providers looking to expand their service offerings.
However, the market is still underdeveloped. Only 36% of SMBs reported using a cybersecurity solution provided by a service provider, leaving a significant 64% gap. This untapped market presents a major growth opportunity for CSPs, especially since SMBs are increasingly looking for solutions that are not only affordable but also simple to implement and manage.
CSPs are uniquely positioned to deliver network-native solutions that intercept threats within the network, providing a zero-touch experience for the SMB customer. Such solutions do not require SMBs to manage software installations, updates, or complex IT infrastructures. This simplicity is crucial for businesses that are both time- and resource-constrained.
Budget Constraints: A Barrier and an Opportunity
The survey found that the average SMB spends just $1,400 per year on cybersecurity, a relatively small budget considering the scope of modern threats. Yet, this doesn’t mean SMBs are unwilling to invest in protection. Many are interested in bundled services that can offer cybersecurity at a lower overall cost. In fact, 62% of respondents expressed a preference for purchasing cybersecurity as part of an IT or mobile service package, rather than as a standalone solution.
This preference for bundling creates a natural synergy for CSPs, who can offer cybersecurity services as part of their existing offerings. By packaging these services together, CSPs can help SMBs stretch their budgets further while ensuring they get the protection they need. Additionally, 65% of SMBs indicated they are likely to upgrade or purchase new cybersecurity solutions in the next 12 months, showing a clear demand for more effective protection.
The Allot Solution: A Win-Win for CSPs and SMBs
One example of an ideal network-native solution for SMBs is the Allot zero-touch cybersecurity service. Priced at $10 to $20 per month, this solution is designed to provide robust protection at a price point that is accessible to SMBs. Allot’s solution is deployed directly within the CSP’s network, allowing it to intercept cyber threats before they reach the end-user.
For CSPs, offering a zero-touch cybersecurity solution like Allot’s not only creates a new revenue stream but also enhances customer loyalty. SMBs are more likely to view their CSP as a trusted business partner, rather than just a service provider, when they can rely on them for critical cybersecurity protection. As SMBs continue to seek out solutions that are affordable, easy to manage, and effective, CSPs have a golden opportunity to meet these needs and grow their business in the process.
A Market Ripe for Growth
The SMB cybersecurity market is not just a challenge; it’s a significant opportunity for telecom providers. With SMBs increasingly aware of the risks they face and more willing to trust service providers with their cybersecurity, CSPs are in an ideal position to offer solutions that are affordable, easy to use, and tailored to their specific needs. By offering network-native solutions, CSPs can help protect SMBs from cyber threats while also ensuring regulatory compliance, all within a budget that works for small businesses.
As SMBs look to upgrade their cybersecurity in the coming year, CSPs that can offer bundled, zero-touch solutions will be well-positioned to capture this growing market. In doing so, they will not only safeguard the digital futures of their SMB customers but also unlock new revenue streams and deepen customer relationships.
To hear more from our experts – including Ed Amoroso, CEO of TAG Infosphere and Former AT&T CISO – who discuss key insights from our global cybersecurity survey of SMBs, watch our on-demand webinar, ‘How CSPs Can Monetize the Cybersecurity Maze for SMBs.’
FAQ
SMBs are becoming more frequent targets for cybercriminals due to their often limited cybersecurity resources and expertise. As digital threats like phishing, malware, and ransomware become more sophisticated, many SMBs find themselves struggling to keep pace with necessary cybersecurity measures. This vulnerability makes them attractive targets for attackers who see easier opportunities in businesses that cannot afford comprehensive protection.
CSPs have a unique opportunity to support SMBs by offering network-native cybersecurity solutions that are easy to implement and manage. These solutions can intercept threats directly within the network, providing a zero-touch experience for SMBs, which means they don’t need to handle software installations, updates, or complex IT infrastructures. By offering such services, CSPs can not only protect SMBs but also generate new revenue streams and strengthen their relationship with customers.
According to the survey data, SMBs primarily consider performance and cost when selecting cybersecurity solutions. About 48% of surveyed SMBs prioritize performance, while 43% focus on cost. This focus is due to their need for solutions that can protect them effectively without exceeding their limited budgets. However, the challenge is that more advanced solutions tend to come with higher price tags, which many SMBs find difficult to afford.
CSPs can address SMBs' budget constraints by offering bundled services that include cybersecurity as part of existing service packages. This approach allows SMBs to access necessary protection at a lower overall cost, making cybersecurity more accessible. The survey indicated that 62% of SMBs prefer to purchase cybersecurity as part of a package rather than as a standalone service. This bundling strategy not only helps SMBs stretch their budgets further but also presents a growth opportunity for CSPs looking to expand their service offerings.
