There’s a very interesting report that’s come out from Continuum recently on the topic of cybersecurity and small to mid-sized businesses. They surveyed 850 of these SMBs in the US, UK, Belgium, France, and Germany and they uncovered some compelling data. Here are a few of the highlights from their report:
- 83% of the businesses using an MSP said they expected to invest more in cybersecurity in the next 12 months. Of the business that don’t currently use an MSP, 62% were planning to invest more.
- Half of respondents said that if they were working with an MSP, they expected to see increased security as one of the benefits of that relationship regardless of whether managed security was one of the specific items the MSP was responsible for.
- For those using an MSP, 74% said they would take legal action against the MSP if they suffered a cyber attack.
- 93% of companies who are currently using an MSP would consider moving to a new MSP if this new MSP offered the “right” cyber security solution. And right doesn’t mean cheapest. Those businesses also said they’d be willing to pay more.
My takeaways from these numbers: Business are worried about cybersecurity, they’re looking to invest in shoring up their defences. Great opportunity. But they will hold you responsible if something happens. And if you can’t help them with security, they will switch to a provider who can.
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All of this data segues nicely into interview with Lynn Souza, CEO of an MSSP called Kyber Security. For decades, the company was an MSP called CONNECT Computer.
Lynn noticed that cybersecurity was becoming an increasingly urgent and important issue for her clients and for the market in general, so she started the company on a journey to becoming a managed security services provider. She believes moving to a security-first mindset has been critical for the company.
We talk about making the shift from an MSP to an MSSP, some of the pains and challenges in the transition, and ultimately the upside she’s seeing of transforming the company.
But first, of course, our 1 Thing segment, where we hear from an MSP about 1 thing that’s made a difference in their business. Today we have Aaron Kane, CEO of CTI Technology.
1 Thing (#MSP1T)
[03:21] CTI is an MSP in the Chicago area. Prior to that they were a telecom company.
[03:51] In 2010, they migrated to the managed service provider model. Their messaging wasn’t in sync and clients were confused.
[04:39] They employed the EOS process from Gino Wickman and defined core values, vision, mission, geography of the clients, and targets.
[05:04] They needed an accountability structure where employee goals lined up with their 1, 3, and 10-year targets. This made the messaging clear between employees and clients. It’s had a huge impact on the success of the business.
What’s your 1 Thing? What idea, strategy, tool, book, process, thing made a real difference to your MSP career or business. Put another way, let’s say a new MSP walked up to you at conference and said, “I’m just getting started in this space. What advice can you give me? What’s worked for you?” and you can only tell them 1 thing. What would that 1 thing be?
Tell us in a voice memo and email the recording to [email protected]. Not only could you be podcast-famous by being featured on the show, I’ll also send you a Frankly MSP t-shirt. They’re pretty cool and I want to give them away!
Interview with Lynn Souza: Transforming from MSP to MSSP
[07:50] Lynn’s company recently made the shift from an MSP to an MSSP: a managed security service provider.
[08:02] Why? As times change, we have to reinvent ourselves. Lynn noticed everyone was talking about cybersecurity.
[09:41] Lynn felt it was so important to convey the company’s new focus on security that she left 30+ years of brand recognition as CONNECT Computer and changed the name to Kyber Security.
[10:37] They spent at least 12 to 18 months coming up with processes and training for their team. They also needed to vet the products that would work at their client price points.
[11:40] They designed their security portfolio to protect their clients at every level. They rewrote processes, procedures, and retrained sales people. They hired new security specialists.
[13:09] Vetting products and industry developments, and team training, is now an ongoing process.
[15:28] A lot of clients appreciate the change they’ve made. Being an MSSP, they have to talk to clients and explain to them what makes them different from a regular MSP.
[17:31] They now have three types of client opportunities they can pursue: They still offer traditional MSP services. They can help clients with enhanced security needs. (Compliance is another growing part of their sector.) And they can help supplement an internal IT team on the security side.
[18:44] The switch has been worth it for clients, and for Lynn and her company.
[19:33] It was really important for Lynn to be able to support her clients and keep them safe. There’s also the added benefit of new revenue. Lynn says it’s been a difficult journey, but also really fun.
[20:11] If Lynn had to do it over again, she’d start sooner.
[20:44] To get involved with security, you need to take it really seriously, hire experts, and do your due diligence.
Links from this episode
- Underserved and Unprepared: The State of SMB Cyber Security in 2019– white paper
- Continuum
- CTI Technology
- Aaron Kane on LinkedIn
- Getting a Grip on Your MSP Business – FMSP006
- EOS
- Traction by Gino Wickman
- Lynn Souza on LinkedIn
- Kyber Security
- Frankly MSP Community
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