March 16, 2020 in Events
Cybersecurity should be something that every MSP (Managed Service Provider) is thinking about. The Business Sessions stream at the recent ConnectWise IT Nation Share + Evolve was led by Jay Ryers, CTO of Security Products at Continuum.
As you can probably guess, the event focused almost entirely on Security. Here’s what we took away from the event:
In 2018, cyber hacking groups (e.g. APT10) started targeting MSPs. In most cases when an MSP is compromised nearly all of their clients are compromised as well. This means that MSPs are being actively targeted by hackers despite that fact that they will usually take far more precautions than the average business to protect their data.
These attacks ramped up in 2019, with many businesses falling prey to Ransomware attacks like Ryuk and GandCrab. In 2020, MSPs can expect more attacks than ever before and need to be doing everything possible to secure their client’s data.
Suggested steps at the conference were:
More information about this can be found in the ConnectWise University Security Journey.
ConnectWise surveyed their client base and found that just 13% of MSPs were having conversations about Cybersecurity with all of their clients (not just one or two key accounts). They also found that:
The problem with this is that most of your clients have no idea what the right Cybersecurity is, and in many cases would think that the protection measures that are already in place on their accounts (such as backups, virus protection and firewalls) are adequate. They need their MSP to tell them what the right Cybersecurity is.
Cybercrime costs Australian businesses more than $1 billion per year. 66% of small businesses wouldn’t be able to recover from a data breach. The average data breach in Australia costs US$1.99 million or US$108 per record.
These figures should be alarming to the average small business. Yet many of your clients will refuse to pay more for security services until there has been a breach. By then it is usually too late.
In 51% of cases where Australian Businesses were attacked by ransomware they paid up. 79% of businesses said that they would pay again if they did not have backups available. The average ransomware extortion payment amount sits at $84,000 and is doubling every quarter.
You need to be having conversations with them and asking pointed questions like:
Once you start focusing on the risks presented by cybersecurity, it’ll become a lot easier to sell it to your clients.
Managed Security Services are expected to be worth over $60 billion globally by 2024 (see chart below).
Cybersecurity is a hot topic, and it’s something that most MSPs can talk to their existing client base about. It’s also a way of landing new clients and expanding into other ways of doing business.
In the Business Sessions, Ryerse stated that “MSPs that hold cybersecurity seminars outperform other MSPs by 5:1. It is the number one thing your business can do to grow your MSP”.
MSPs can use Cybersecurity as a way to land and expand new clients. ConnectWise University has more on the topic.
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