Rising demand drives cybersecurity revenue growth surge

Amid rising cyber threats and changing regulations, IT services organisations are reporting substantial revenue growth in their cybersecurity offerings.

According to a survey conducted by EasyDMARC among 1,000 IT professionals and decision-makers in the US and UK, 62% of IT organisations have seen increased revenue from cybersecurity services over the last 12 months. This growth is largely due to heightened customer demand.

The survey highlights that 41% of respondents' organisations have expanded their cybersecurity offerings within the past year. While this shift towards more robust cybersecurity solutions is evident, MSPs and MSSPs face challenges such as client confidence in existing protections (54%) and concerns over costs (52%).

The study further underscores that two-thirds of respondents believe focusing more on cybersecurity presents a competitive advantage for their businesses. In anticipation of future trends, respondents largely expect major email providers such as Google and Yahoo to enforce mandatory email authentication protocols like DMARC, DKIM, and SPF.

Currently, 52% of organisations offer email security services, with an additional 14% planning to launch these services soon. A third of respondents indicated that cybersecurity makes up most or all of their service offerings, whereas 24% offer no cybersecurity solutions.

Revenue growth in this sector varies, with 28% reporting an 11-25% increase in revenue and 13% recognising growth of up to 50%. The expansion in cybersecurity services has been fuelled by customer demands (45%), evolving threat landscapes (28%), and compliance with anticipated regulatory requirements (16%).

Views on client proactivity in cybersecurity efforts are mixed. Among MSPs and MSSPs, 21% consider their clients to be inadequately proactive. However, another 21% perceive their clients as highly proactive, while 48% find clients modestly proactive but with room for improvement. Yet, over a quarter of respondents expressed minimal confidence in their clients' ability to withstand cyberattacks.

Industry trends demonstrate a rising demand for cybersecurity services. 58% of respondents noticed an increase in customer requests for such services, and over two-thirds anticipate a continued rise in demand. 26% saw a spike in inquiries for integrated security solutions. Emerging technologies are recognised as significant influencers, with 72% predicting AI and automation will shape MSP offerings over the next three years.

AI-generated phishing and deepfake impersonations are flagged as imminent email security threats by 60% of respondents, while ransomware delivered via email ranks third at 7%. In response, many anticipate email service providers like Google and Yahoo to bolster their security frameworks.

MSPs encounter several hurdles in selling cybersecurity services. Aside from client confidence and cost, other barriers include a lack of urgency or awareness of cyber risks (39%), challenges in recognising immediate benefits (39%), and a shortage of in-house expertise (39%).

Mike Anderson, Global Channels Director at EasyDMARC, remarked on the survey's implications: "Cybersecurity is becoming a non-negotiable aspect of business strategy, and it's encouraging to see that customers recognise this need. The data shows that customer demand is the main catalyst behind increased investment in cybersecurity resources across IT businesses, a clear indication that companies are taking proactive steps to protect themselves from quickly evolving threats, though there is further room for action."

"MSPs, MSSPs, and IT consultancies are positioning themselves to not only meet current expectations but to anticipate future needs, ensuring organisations have the robust cybersecurity support required to stay ahead of emerging threats. For security vendors, this means providing the right resources, from comprehensive training and adaptable, easily-integrated solutions that empower their partners to deliver on the highest level of protection for their clients."