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Security slips on SME priority list
MSPs indicate many customers now rank dealing with rising costs and inflation as coming in ahead of their fears of being hit by a ransomware attack
Managed service providers (MSPs) have noted small and medium-sized enterprise (SME) security budgets coming under pressure as customers wrestle with the economic pressures of dealing with increased costs and persistent inflation.
CyberSmart’s latest annual MSP survey has revealed a concerning shift in priorities among SMEs, with the focus on security slipping behind other pressures, despite the increased number of threats.
MSPs reported that their customers placed dealing with rising costs and inflation above ransomware and malware infections as they focused on the day-to-day running of their businesses.
The report found that, from an MSP perspective, the rise in artificial intelligence (AI)-driven attacks was the number one concern as the channel looked to protect themselves and their customers.
The need to protect the business is a genuine one for MSPs, with CyberSmart being told by three-quarters of those quizzed that they had been the victims of at least one breach in the past year. More than half had been targeted more than twice as criminals looked to exploit their position in the broader supply chain.
More than half (59%) of MSPs felt the risks customers faced had risen over the past year, with SMEs continuing to be a target for cyber criminals.
MSPs also shared the same economic concerns their customers were obsessing over, but ranked those lower than the need to get ahead of the AI threat.
Context
When it comes to customers, MSPs have been advised to consider the context users find themselves in, keeping a firm eye on the finances, and to pitch products and services with an awareness of that situation.
“Cyber risk and economic pressure are now inseparable,” said Jamie Akhtar, CEO and co-founder of CyberSmart. “MSPs can no longer sell cyber security in isolation when rising costs dominate customer priorities.
“The real challenge has moved beyond the tech stack into liability, compliance and accountability,” he added. “For SMEs, the key is embedding security into day-to-day operations and working with trusted partners to maintain resilience without adding unnecessary complexity or cost.”
The survey also indicated that MSPs felt the level of scrutiny they came under from customers had eased, which was interpreted as a sign that expectations were becoming standardised, with procurement, compliance and vendor oversight procedures improving the process.
The CyberSmart MSP survey comes on the heels of the Global Technology Industry Association’s (GTIA’s) State of the channel 2026 report for the UK and Ireland, which was shared yesterday.
That report underlined the awareness across the channel of the importance of AI, both as a technology to be deployed internally, as well as at customers. There was a sense that those who understood artificial intelligence were more confident of their growth prospects over the rest of 2026.
The report was dominated by attitudes towards AI, with 35% of UK and Ireland IT service providers already generating between 11-25% of their revenues from services that were a mix of fresh and existing AI products and services. A small proportion (7%) indicated that half of their revenues now came from this area.
