Report | Analysys Mason: SMB Cyber Security Challenges & Solutions

Discover insights into the evolving IT priorities of small and medium-sized businesses and their cybersecurity challenges. Learn how SMBs are addressing gaps through managed services, enhanced security investments, and actionable recommendations to reduce risks. Download the guide for key strategies to strengthen your organization’s defenses.

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Perspective

SMB cyber-security challenges and solutions March 2025

Matt Small

SMB cyber-security challenges and solutions | i

Contents

1. Introduction and key findings ii

2. SMBs have become major targets of cyber attacks due to their relatively limited cyber-security protection 1

Many SMBs do not have the internal expertise to sufficiently protect themselves from cyber attacks 2

3. SMBs’ spending on IT is set to increase steadily, and cyber security will be a key investment area 4

SMBs’ spending on IT will grow at a CAGR of 8% between 2024 and 2029 4 Cyber security will be the main area of IT investment during the next 12 months for SMBs of all

sizes 5 SMBs worldwide will increase their spending on cyber-security solutions by more than USD45

billion between 2024 and 2029 6

4. MSPs are the most popular channel for SMBs to purchase their cyber-security solutions from 6

5. Recommendations for MSPs 8

6. How Check Point helps MSPs to enhance SMB security 9 Check Point offers a robust suite of solutions covering every aspect of SMB security 9

7. About the author 11

List of figures Figure 1: Percentage of SMBs that experienced data breaches in the 12 months to January 2025, Germany, Singapore, UK and USA ............................................................................................................................... 2 Figure 2: Number of full-time, in-house, dedicated IT staff, by business size, Germany, Singapore, UK, USA, 1Q 2025 .............................................................................................................................................. 3 Figure 3: Percentage of SMBs that have a dedicated cyber-security specialist within their organisation, by business size, Germany, Singapore, UK, USA, 1Q 2025 ............................................................................... 4 Figure 4: SMBs’ IT spending, worldwide ..................................................................................................... 5 Figure 5: SMBs’ IT spending priorities for the next 12 months, by business size, Germany, Singapore, UK and USA, 1Q 2025........................................................................................................................................ 5 Figure 6: Channels that SMBs purchase the majority of their cyber-security solutions from, by business size, Germany, Singapore, UK and USA, 1Q 2025 ............................................................................................... 6 Figure 7: SMBs’ spending on cyber-security solutions and services, by channel, worldwide ......................... 7 Figure 8: Reasons driving SMBs’ IT channel switches, by business size, Germany, Singapore, UK and USA, 1Q 2025 ........................................................................................................................................................ 8

This perspective was commissioned by Check Point. Usage is subject to our disclaimer and copyright notice. Analysys Mason does not endorse any of the vendor’s products or services.

SMB cyber-security challenges and solutions | ii

1. Introduction and key findings

This report provides insights into the IT challenges faced by small and medium-sized businesses (SMBs) and sheds light on their evolving business and technology priorities.1 It also explores how SMBs are protecting themselves against cyber threats and provides recommendations for managed service providers (MSPs) on how to better serve the SMB cyber-security market.

Data used in this report comes primarily from two sources: Analysys Mason’s 1Q 2025 business survey and our IT services forecast, the SMB Technology Forecaster. Our 1Q 2025 business survey was conducted in Janaury 2025 and we surveyed 1215 IT decision makers from SMBs in Germany, Singapore, the UK and the USA. Survey participants were requested to assess the changes to their attitudes and behaviours regarding IT investments, as well as their feelings about the current macroeconomic environment in their repsective countries.

The key findings of this report are that:

• cyber attacks on SMBs have become increasingly common in recent years • many SMBs do not have adquete security measures in place to protect themselves from these attacks • cyber security will be the main area of IT investment area for SMBs as their spending on IT increases • SMBs most commonly purchase their cyber-security solutions from MSPs • SMBs will increase their spending with MSPs to secure their IT environments because they often lack

the internal IT resources to do so themselves.

1 We define SMBs as companies with up to 1000 employees. Within this category, we define micro businesses as those

with 1–9 employees, small businesses as those with 10–99 employees and medium-sized businesses as those with 100–999 employees.

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SMB cyber-security challenges and solutions | 1

protection

2. SMBs have become major targets of cyber attacks due to their relatively limited cyber-security protection

SMBs have become increasingly targeted by cyber attacks in recent years. Indeed, Orange Cyberdefense’s Security Navigator 2025 reports that the number of cyber extortion attacks among SMBs increased by more than 50% between October 2023 and September 2024.2 This means that these businesses now account for a higher share of cyber attacks than ever before (66%). There are a number of reasons for this trend.

• SMBs typically have more limited security resources to protect their data than larger companies, as well as less comprehensive security measures.

• SMBs are creating and storing larger amounts of valuable data as they continue their digital transformation journeys, without sufficient security measures in place to protect this data.

• Malicious software, which now uses new AI technology, makes it easier to target SMBs en masse.

The lack of adequate security measures and the limited money that is available for investment in security services also mean that SMBs are less prepared to respond to, and recover from, cyber attacks than their larger counterparts.

Indeed, our survey results show that only 40% of SMBs have documented procedures in place to act quickly in the case of a security breach. Our survey results also show that over 30% of SMBs in Germany, Singapore, the UK and the USA experienced data breaches in the 12 months to January 2025 (Figure 1). Additionally, the 2023 Internet Crime Report from the FBI states that US businesses reported a total of USD12.5 billion in losses from internet scams in 2023, which is an increase of almost 18% from 2022. The average amount lost during these events also rose, from USD13 000 to USD15 000.3

2 Orange Cyberdefense (2025), Security Navigator 2025.

3 Federal Bureau of Investigation (2023), Internet Crime Report 2023.

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protection

Figure 1: Percentage of SMBs that experienced data breaches in the 12 months to January 2025, Germany, Singapore, UK and USA4

Many SMBs do not have the internal expertise to sufficiently protect themselves from cyber attacks

Many SMBs do not have adequate security solutions in place to protect themselves from cyber attacks, nor do they have the human resources to implement these solutions or manage their IT environments, despite growing awareness of the need to do so. Data from our survey shows that only 50% of business with 0-99 employees currently have endpoint detection and response (EDR) solutions, mobile threat defence, or DDoS-protection services.

SMBs with 10-99 employees, on average, fewer than two staff members dedicated to IT. Businesses with 0-9 employees have no full-time, internal IT staff members and therefore no dedicated cyber-security staff (Figure 2). These businesses instead either have employees that spend only part of their time maintaining their company’s overall IT environment and a further subset of this time securing it, or outsource these tasks to an external service provider.

4 Question: “Has your company experienced a data breach within the last 12 months?” n = 1215

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protection

Figure 2: Number of full-time, in-house, dedicated IT staff, by business size, Germany, Singapore, UK, USA, 1Q 20255

Only a third of all SMBs have a dedicated cyber-security specialist within their organisation; this figure falls to 15% when considering only SMBs with 0-99 employees (Figure 3). It should be noted that the reported figures are likely to be higher than the actual figures because some survey respondents may have had a broad definition of what constitutes a security specialist.

5 Question: “How many full-time, in-house, dedicated IT staff are currently working at your company?” n =660

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Figure 3: Percentage of SMBs that have a dedicated cyber-security specialist within their organisation, by business size, Germany, Singapore, UK, USA, 1Q 20256

This lack of internal IT resources and, specifically, the lack of cyber-security expertise within SMBs represents a good opportunity for MSPs to expand their role by supporting SMBs with the evolving cyber threat landscape.

3. SMBs’ spending on IT is set to increase steadily, and cyber security will be a key investment area

SMBs’ spending on IT will grow at a CAGR of 8% between 2024 and 2029

SMBs highlighted that inflation, fears of a recession and elevated energy costs are their top macroeconomic concerns. Over 60% of SMBs in our survey that had a pessimistic view of the economy cited inflation as one of the top three drivers of the situation. Nonetheless, we expect that SMBs worldwide will increase their spending on IT steadily between 2024 and 2029; it will grow from USD1.6 trillion in 2024 to USD2.4 trillion in 2029 (Figure 4). Much of this spending will be caused by businesses’ ongoing digital transformations leading to the increased adoption of cloud and cyber-security services and managed IT solutions. We estimate that the growth in spending will accelerate later on during the forecast period as SMBs’ sentiment about the economy improves and their concerns begin to subside.

6 Question: “Does the following statement apply for your organisation? ‘We have a dedicated cyber-security specialist within our

IT team’” n =1215

SMB cyber-security challenges and solutions | 5

Figure 4: SMBs’ IT spending, worldwide

Cyber security will be the main area of IT investment during the next 12 months for SMBs of all sizes

SMBs’ priorities for IT investment vary by business size. For example, businesses with 0–9 employees ranked PCs and devices as their second-highest investment priority, but these did not feature in the top five priorities for larger SMBs (Figure 5). Instead, SMBs with 10 or more employees ranked investment in cloud compute and managed IT services as a priority due to ongoing digital transformation journey. It is important to note that absolute spending in each of these IT categories can differ greatly.

Figure 5: SMBs’ IT spending priorities for the next 12 months, by business size, Germany, Singapore, UK and USA, 1Q 20257

Ranking 0–9 employees 10–99 employees 100–999 employees

1 Cyber security Cyber security Cyber security

2 PCs and devices Digital marketing and advertising Infrastructure and cloud compute

3 Digital marketing and advertising Managed IT services Managed IT services

4 Business applications Infrastructure and cloud compute Digital marketing and advertising

5 Infrastructure and cloud compute Business applications Business applications

Source: Analysys Mason

However, there were some similarities. SMBs of all sizes ranked cyber security as their top IT investment priority for the next 12 months, which highlights that all SMBs recognise the need to secure their IT environment, despite their lack of internal IT and cyber-security expertise. This represents a large opportunity for MSPs because they provide security without SMBs having to expand their internal IT teams.

7 Question: “Out of these IT areas, please rank your spending priority for the next 12 months on a scale of 1 to 10” n=1215

SMB cyber-security challenges and solutions | 6

SMBs worldwide will increase their spending on cyber-security solutions by more than USD45 billion between 2024 and 2029

SMBs’ spending on cyber-security solutions will increase from USD87 billion in 2024 to USD135 billion in 2029. Investment in security solutions will increase linearly between 2024 and 2029, at a rate of 9% year-on- year.

Remotely managed security will be the largest contributor to SMBs’ overall spending on security services; it will account for almost 45% of all spending by 2029. It will also be the fastest growing security service in terms of spending; spending will increase at a CAGR of 12.5% between 2024 and 2029, which highlights SMBs’ demand for managed security services.

4. MSPs are the most popular channel for SMBs to purchase their cyber-security solutions from

MSPs are currently the most popular channels for SMBs to purchase their cyber-security solutions from. Indeed, over a third of SMBs in our survey reported purchasing cyber-security solutions form these players (Figure 6). This share is similar across for all IT services.

Figure 6: Channels that SMBs purchase the majority of their cyber-security solutions from, by business size, Germany, Singapore, UK and USA, 1Q 20258

8 Question: “From which of these channels does your company purchase the majority of your cyber security solutions” n =1215

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Furthermore, we expect that even more SMBs will turn to MSPs to meet their cyber-security demands as the threat landscape continues to become more complex. MSPs will overtake resellers and value-added resellers (VARs) to become the channel with the highest level of SMB cyber-security spending in 2025. Indeed, MSPs will account for 44% of all SMB cyber-security spending by 2024; telecoms operators will be the only channel for which spending will increase more quickly (Figure 7).

Figure 7: SMBs’ spending on cyber-security solutions and services, by channel, worldwide

The increased spend with MSPs reflects SMBs’ knowledge of the growth in the number and magnitude of cyber threats (as shown by cyber security being their top IT investment priority for the next 12 months), along with their lack of internal resources to properly secure themselves. However, MSPs must note that almost 25% of SMBs have switched IT channels in the last 12 months, mostly due to the providers’ lack of vision and strategy (Figure 8).

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Figure 8: Reasons driving SMBs’ IT channel switches, by business size, Germany, Singapore, UK and USA, 1Q 20259

5. Recommendations for MSPs

MSPs should consider implementing the following recommendations to capture as much of increased spending on cyber-security solutions by SMBs as possible.

• MSPs should invest in the growing SMB security market. SMBs’ spending on security solutions worldwide is set to grow at a CAGR of 8% between 2024 and 2029 to reach a total of USD135 billion. SMBs recognise the need to better protect themselves against cyber attacks, but many are unable to do so due to a lack of internal IT resources. MSPs can see a positive return on investment if they can effectively protect SMBs from the evolving cyber threat landscape.

• MSPs need to be prepared to work alongside SMBs’ internal IT staff. SMBs’ security solutions do not have to be fully managed internally or externally, there can be a mixture of both. The internal IT team may push back on working with an MSP because they may feel that they are being replaced. MSPs should alleviate these concerns by showcasing how they can supplement and strengthen internal resources and free up time to work on other projects.

• MSPs should provide SMBs with a clear strategy for securing their IT environments. MSPs should do more than replacing SMBs’ existing cyber-security solutions; they should proactively provide SMBs with a roadmap for additional security. This may include providing resources or assessments to help SMBs to choose the right solutions for them, offering support for the implementation of these solutions or showcasing how the MSP can continue to support them as they grow and mature. The cyber threat

9 Question: “Why did your company switch to a new channel partner in the last 12 months?” n = 284

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landscape is constantly evolving and many SMBs are changing IT providers due to a lack of vision or strategy, so MSPs cannot afford to keep their offerings and relationships with customers stagnant.

• Highlighting the operational simplicity of managed security services should be a key focus for MSPs. SMBs often have limited internal IT capabilities and resources, with only a subset, or none at all, dedicated to cyber security. MSPs should highlight the operational simplicities of adopting managed security services and demonstrate how this can maximise the efficiency of SMBs’ internal IT resources. This can help MSPs to benefit from SMBs that are seeking to protect themselves from cyber attacks.

• MSPs should focus on the outcomes of adopting security solutions, not the technology itself. SMBs are less able to understand the cyber threat market as both it and the associated solutions increase in complexity. MSPs should focus on marketing the outcome of adopting security solutions in order to reassure, and not overwhelm, SMBs.

6. How Check Point helps MSPs to enhance SMB security

Check Point Software Technologies offers comprehensive cyber-security solutions to governments and enterprises, aiming to prevent threats such as malware, ransomware and phishing. These solutions span network security, secure access service edge (SASE), email security, endpoint security, managed endpoint protection and response and cloud security.

Through its Infinity Portal, Check Point’s cloud-based management platform, MSPs get the centralised, intuitive management they need to manage SMB security effectively, while reducing operational overhead. The Infinity Portal provides MSPs and managed security service providers (MSSPs) with:

• multi-tenant, multi-tier architecture: ensuring scalability together with customer data isolation and the ability to delegate administrative tasks to SMB customers

• pay-as-you-go licensing: opex-based pricing allows MSPs to pay only for what they use to accommodate seasonality and a changing customer base

• centralised visibility across accounts: dedicated dashboards offer a consolidated multi-account view of security posture, network health and administrative data (for example, licensing)

• security policy and configuration templates: customers can be quickly onboarded using predefined configuration templates for new security gateways, and predefined, customisable security polices can be applied (Quantum Spark Management)

• proactive management alerts: through a rich set of notification channels, MSPs can take a proactive stance to managing their customers, with alerts available via SMS text messages, Teams, emails, Slack, Jira and more (available through Infinity Playblocks).

Check Point offers a robust suite of solutions covering every aspect of SMB security

With Check Point’s MSSP programme, MSPs are well-equipped to secure their clients’ networks and users, whether they work on- or off-premises. Using the Infinity Portal, MSPs can offer the following.

• Network security: Quantum Spark appliances are tailored for MSP-managed clients, and support Wi-Fi, 5G wireless, SD-WAN and IoT security.

SMB cyber-security challenges and solutions | 10

• Secure access service edge (SASE) security: Harmony SASE delivers two times faster internet security with full-mesh secure access.

• Email security: Harmony Email & Collaboration prevents phishing, data loss and malware, while protecting SaaS and collaboration suites.

• Endpoint security: Harmony Endpoint is a complete endpoint security solution with an advanced endpoint protection platform (EPP), endpoint detection and response (EDR) and extended detection and response (XDR) capabilities.

• Managed detection and response (MDR): Infinity MDR delivers security operations as a service with a prevention-first approach.

• Cloud security: CloudGuard prevents threats and prioritises risks in the cloud across your applications, network and workloads.

For more information on Check Point and its MSSP and SMB solutions, visit:

https://www.checkpoint.com/partners/mssp-program/

https://www.checkpoint.com/harmony/sase/ https://www.checkpoint.com/harmony/email-security/ https://www.checkpoint.com/harmony/endpoint/ https://www.checkpoint.com/infinity/mdr-mpr/ https://www.checkpoint.com/cloudguard/ https://www.checkpoint.com/partners/mssp-program/

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7. About the author

Matt Small (Analyst) is a member of the Business Services research team and leads the SME Services research programme. He works and Analysys Mason’s business forecasts and conducts research on operator business services, writing on topics such as cloud services, cyber security, fixed and mobile connectivity, SD-WAN and SASE.

Analysys Mason Limited. Registered in England and Wales with company number 05177472. Registered office: North West Wing Bush House, Aldwych, London, England, WC2B 4PJ.

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1. Introduction and key findings 2. SMBs have become major targets of cyber attacks due to their relatively limited cyber-security protection 2.1 Many SMBs do not have the internal expertise to sufficiently protect themselves from cyber attacks

3. SMBs’ spending on IT is set to increase steadily, and cyber security will be a key investment area 3.1 SMBs’ spending on IT will grow at a CAGR of 8% between 2024 and 2029 3.2 Cyber security will be the main area of IT investment during the next 12 months for SMBs of all sizes 3.3 SMBs worldwide will increase their spending on cyber-security solutions by more than USD45 billion between 2024 and 2029

4. MSPs are the most popular channel for SMBs to purchase their cyber-security solutions from 5. Recommendations for MSPs 6. How Check Point helps MSPs to enhance SMB security 6.1 Check Point offers a robust suite of solutions covering every aspect of SMB security

7. About the author

Report | Analysys Mason: SMB Cyber Security Challenges & Solutions

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