How MSPs Can Reduce Cybersecurity Costs While Improving Protection

The global managed services market is set to grow from $302.11 billion in 2024 to $611.17 billion by 2034, nearly doubling in size within a decade. For MSPs, this surge presents both opportunities and challenges. As businesses increasingly seek managed services for cybersecurity, cloud infrastructure, and compliance, MSPs must evolve beyond traditional IT support to stay competitive. By 2024, managed services were expected to account for 44% of MSP revenue, up from 34% in 2023 - signaling a need for strategic adaptation to capture this growing demand.

However, with growth comes rising expectations. Clients demand seamless, cutting-edge solutions to address threats like ransomware and data theft while keeping costs under control. This creates a dual challenge for MSPs: how to expand their offerings and meet client needs without overwhelming budgets or resources.

In this article, we’ll explore actionable strategies MSPs can implement to achieve that balance - by adding an ‘S’ to their acronym and and being able to present themselves as MSSPs (managed security services providers) while reducing cybersecurity costs for themselves and their clients.

Understanding Cybersecurity Costs

Cybersecurity costs can be a significant burden for businesses, especially small and medium-sized enterprises (SMEs). The cost of cybersecurity can vary widely depending on the type of security measures implemented, the size of the organization, and the level of protection required. Managed service providers (MSPs) can help businesses improve their cybersecurity maturity and manage their cybersecurity costs by providing a range of security services, including threat prevention, detection, incident response, and security monitoring.

According to Fortune Business Insights, ​​the global cybersecurity market is projected to grow from USD 193.73 billion in 2024 to USD 562.72 billion by 2032. This growth is driven by the increasing number of cyber threats and the need for businesses to protect their company data and intellectual assets.

MSPs can help businesses reduce their cybersecurity costs by providing a range of services, including:

• Threat detection and response
• Security monitoring and incident response
• Vulnerability management and patching
• Security awareness training
• Compliance and risk management  

By outsourcing their cybersecurity needs to an MSP that provides these services, businesses can benefit from the expertise and resources of a dedicated security team without the high costs of hiring and training in-house staff.

The Challenges Facing Managed Service Providers in Cybersecurity

MSPs face a tough and challenging environment:

• Sophisticated Threats: Cybercriminals continue to innovate, deploying advanced attacks such as ransomware-as-a-service and zero-day exploits.
• Tool Sprawl: Managing disparate tools across multiple clients leads to inefficiencies, higher costs, and security gaps.
• Resource Constraints: Many MSPs lack the budgets or in-house talent to build and maintain comprehensive cybersecurity solutions.
• Client Expectations: SMBs and enterprises alike expect seamless, end-to-end protection, leaving little room for error.
• Infrastructure Management: Overseeing a customer's IT infrastructure and end-user systems adds complexity. Daily management services across various components such as network and infrastructure management are essential, allowing client organizations to focus on enhancing their services without interruptions caused by system downtimes.

These challenges require a smarter approach to cybersecurity - one that maximizes impact without overwhelming budgets or resources.

Strategies for Cost-Effective Cybersecurity Services

1. Leverage Curated Solutions

MSPs don’t need to navigate the cybersecurity landscape alone. Partnering with experts who curate and vet tools at scale can save time, reduce costs, and improve outcomes. For example, CyVent specializes in identifying high-impact technologies that address the most pressing security challenges while ensuring seamless integration into existing systems. By focusing on curated solutions, MSPs can:

• Avoid overpaying for unnecessary features.
• Deploy tools that deliver measurable ROI.
• Simplify their operations by using pre-vetted, reliable, compatible technologies.

2. Adopt AI-Powered Security Tools with Remote Monitoring

Artificial intelligence (AI) is revolutionizing cybersecurity by automating complex tasks and delivering real-time insights. MSPs can leverage AI-driven tools to:

• Detect and respond to threats faster than human teams can.
• Automate routine processes like vulnerability scanning and incident response.
• Reduce labor costs while maintaining a high standard of security.
• Enhance remote monitoring capabilities, allowing MSPs to effectively manage and support IT infrastructure.

AI technologies not only enhance efficiency but also position MSPs as forward-thinking providers capable of handling even the most advanced threats.

3. Streamline Tool Integration

Tool sprawl is one of the biggest cost drivers for MSPs. Managing multiple, disconnected systems not only consumes resources but also creates opportunities for vulnerabilities. Streamlining operations through integrated platforms can:

• Centralize monitoring and response capabilities.
• Reduce redundant processes and licensing costs.
• Improve operational efficiency across client environments.

Integrated platforms can also include cloud solutions to optimize business processes.

CyVent offers integrated solutions like Haven to deliver seamless, bundled security suites that simplify management and improve protection for MSPs.

4. Conduct Regular Risk Assessments

A targeted approach to cybersecurity begins with understanding your vulnerabilities. Risk assessments help MSPs prioritize high-impact areas, ensuring resources are allocated effectively. Benefits include:

• Identifying critical assets that require the most protection.
• Avoiding unnecessary investments in low-risk areas.
• Building trust with clients by proactively addressing their concerns.
• Protecting company data by ensuring a strong security framework during risk assessments.

5. Partner for Scalability

Building a robust in-house cybersecurity capability can be prohibitively expensive. Instead, MSPs can partner with cybersecurity resellers or Managed Security Service Providers (MSSPs) to access:

• Comprehensive, military-grade tools without significant upfront costs.
• Expert support for ongoing threat management, maintenance and upgrades.
• Scalable solutions that grow alongside client needs.

Even government agencies hire MSPs to manage their IT infrastructure and end-user systems, allowing them to focus on their core functions while ensuring essential IT services are effectively handled by external experts.

By working with a trusted advisor like CyVent, MSPs can focus on delivering exceptional service without overburdening their teams or budgets.

Why Cost-Effective Cybersecurity Matters

Investing in smart, scalable cybersecurity solutions doesn’t just reduce costs - it drives business growth. Here’s how:

The historical significance of application service providers (ASPs) in the evolution of managed service providers (MSPs) is notable, as ASPs facilitated remote application hosting and laid the groundwork for modern cloud computing.

1. Enhanced Client Trust

MSPs that offer reliable, cutting-edge protection build stronger relationships with their clients. This trust translates to improved retention and referrals, both of which are critical for long-term success.

2. Revenue Growth Opportunities

Bundled cybersecurity services, such as endpoint protection and email security, allow MSPs to upsell existing clients and attract new ones. By offering tailored packages, MSPs can differentiate themselves in a competitive market.

3. Operational Efficiency

Streamlined tools and processes reduce the time and effort required for cybersecurity management. This efficiency frees up resources for other priorities, such as client acquisition and strategic growth.

4. A Competitive Edge

As cybersecurity threats continue to evolve, MSPs that demonstrate leadership and innovation in their solutions stand out. This positioning helps attract high-value clients and establishes the MSP as a trusted industry leader.

How CyVent Can Help

At CyVent, we understand the complexities of modern cybersecurity and the unique challenges MSPs face. That’s why we provide tailored consulting services and access to curated solutions that:

• Address critical threats like ransomware and malware.
• Simplify operations through seamless integration and centralized management.
• Deliver measurable ROI by focusing on high-impact technologies.

By partnering with leading providers, CyVent helps MSPs deploy solutions like Haven that offer comprehensive, scalable protection while optimizing costs.

Ready to Transform Your Cybersecurity Strategy?

MSPs can no longer afford to take a reactive approach to cybersecurity. By adopting the strategies outlined here and leveraging the expertise of a trusted partner like CyVent, MSPs can protect their clients, enhance their operations, and position themselves for sustained growth.

Contact us now to learn how CyVent can assist you with the right solutions to streamline your cybersecurity strategy and maximize ROI.