Transforming Cybersecurity from a Cost Center to a Profit Generator for MSP
Cyber threats are growing in sophistication and frequency and cybersecurity is no longer a luxury—it’s a necessity. For Managed Service Providers (MSPs), this presents a unique opportunity. While many MSPs view cybersecurity as a necessary expense, forward-thinking providers recognize that it can also be a powerful profit center.
By integrating advanced security services like Identity and Access Management and Privileged Access Management (PAM) into your offerings, you can not only protect your own operations but also create new revenue streams and differentiate yourself in a crowded market.
Why Cybersecurity is Essential for MSPs
As an MSP, you are entrusted with the critical task of managing and protecting your clients’ IT environments. This responsibility comes with significant risks, especially as cyber threats continue to evolve. The consequences of a breach can be devastating—not only for your clients but also for your reputation and bottom line. According to recent studies, cyberattacks on MSPs are on the rise, targeting them as a gateway to their clients’ networks.
The 2023 ConnectWise MSP Threat Report revealed that MSPs are increasingly becoming prime targets for supply chain attacks, with ransomware and other sophisticated attacks focusing on exploiting MSP vulnerabilities. The report analyzed over 440,000 incidents and emphasized that MSPs must adopt a proactive cybersecurity stance to protect both their operations and their clients.
Additionally, a 2024 report from MSSP Alert “Looking into 2024: Security Predictions for MSSPs and MSPs” underlined the importance of MSPs reinforcing their cybersecurity strategies as attackers increasingly exploit these providers to infiltrate their clients’ networks. This means that cybersecurity must be a top priority, not just for compliance but for survival.
However, beyond the necessity of protecting against threats, cybersecurity offers an untapped potential for revenue generation. By offering robust security services, you can not only secure your clients’ environments but also create a sustainable profit model for your business.
The Shift from Cost to Profit Center
Traditionally, cybersecurity has been viewed as a cost—a necessary expenditure to protect against threats and ensure compliance. But what if you could turn this cost into a revenue-generating service?
By strategically integrating cybersecurity into your service catalog, you can meet this objective.
Here’s how:
1. High Demand for Cybersecurity Services: With increasing regulatory requirements and a growing awareness of cyber risks, businesses are more willing than ever to invest in cybersecurity. By offering comprehensive security services, you can meet this demand and position your organization as a trusted provider of critical security solutions.
2. Differentiation in a Competitive Market: The MSP market is highly competitive, with many providers offering similar IT management services. By adding cybersecurity to your offerings, you can differentiate your business and attract clients who prioritize security. This not only helps you win new business but also enables you to command higher prices for your services.
3. Long-Term Client Relationships: Cybersecurity is not a one-time service—it’s an ongoing necessity. By offering managed security services, you can build long-term relationships with your clients, providing continuous value and generating recurring revenue.
Key Cybersecurity Services to Offer
To successfully turn cybersecurity into a profit center, it’s important to offer services that address the most pressing security needs of your clients. Two of the most impactful services you can provide are Identity-as-a-Service (IDaaS) and Privileged Access Management (PAM).
1. Identity-as-a-Service (IDaaS)
IDaaS is a cloud-based service that provides identity and access management (IAM) capabilities as a managed service. It enables organizations to securely manage and control user identities and access to resources across various applications and systems, whether on-premises or in the cloud.
Why IDaaS Matters:
- Enhanced Security: IDaaS ensures that only authorized users have access to critical systems and data, reducing the risk of unauthorized access and data breaches.
- Simplified Compliance: Many regulatory frameworks, such as GDPR, NIS2, DORA and HIPAA, require strict identity and access controls. IDaaS helps your clients achieve compliance by providing the necessary tools and reporting capabilities.
- Scalability: As businesses grow and adopt new technologies, their identity and access management needs become more complex. IDaaS offers the scalability needed to manage these challenges without requiring significant investments in infrastructure.
Profit Potential with IDaaS:
By offering IDaaS, you can tap into the growing demand for cloud-based IAM solutions. This service can be offered on a subscription basis, providing you with a steady stream of recurring revenue. Additionally, IDaaS can serve as a gateway to other security services, such as PAM, creating opportunities for upselling and cross-selling.
2. Privileged Access Management (PAM)
Privileged Access Management (PAM) is a critical component of any comprehensive cybersecurity strategy. PAM solutions manage and monitor access to critical systems and sensitive data, ensuring that only authorized users with the necessary privileges can perform high-risk activities.
Profit Potential with PAM, Why PAM Matters:
- Protection Against Insider Threats: Insider threats, whether intentional or accidental, pose a significant risk to organizations. PAM helps mitigate this risk by controlling and monitoring privileged access to sensitive data.
- Regulatory Compliance: Like IDaaS, PAM is essential for meeting regulatory requirements that mandate strict controls over privileged accounts. PAM provides the audit trails and reporting needed to demonstrate compliance.
- Reduced Attack Surface: By limiting and controlling access to critical systems, PAM reduces the attack surface and makes it harder for attackers to compromise your clients’ environments.
- Enhanced Control with PEDM: Privileged Elevation and Delegation Management (PEDM) adds an extra layer of security by allowing temporary elevation of privileges only when necessary and ensuring that elevated access is closely monitored. This minimizes the risk associated with permanently elevated accounts and further strengthens the overall security posture.
PAM can be offered as a managed service, allowing you to provide ongoing monitoring and management of privileged accounts. This not only generates recurring revenue but also positions your MSP as a trusted security partner.
Moreover, PAM is particularly valuable for clients with complex IT or OT environments, such as those with remote or third-party access needs, making it an attractive service for a wide range of businesses and industry.
The WALLIX Advantage: Seamless Integration of On-Premises and SaaS Deployments
One of the challenges MSPs face when implementing new security services is the integration of these solutions into existing infrastructures. This is where WALLIX comes in. WALLIX offers advanced PAM solutions that seamlessly integrate with both on-premises and SaaS environments, providing a hybrid approach that meets the needs of modern businesses.
With WALLIX, you can start by deploying PAM as a SaaS solution while maintaining your customer existing infrastructure. This allows for a gradual migration to the cloud, minimizing disruption and ensuring a smooth transition. Additionally, WALLIX’s solutions offer enhanced features such as Remote Access and Multi-Factor Authentication (MFA), which can be easily added to your service offerings.
By leveraging WALLIX’s solutions, you can provide your clients with the best of both worlds—a secure, scalable PAM solution that fits their unique needs, whether they are on-premises, in the cloud, or in a hybrid environment. This approach allows you to smoothly enter your clients’ environments, gradually expanding your presence by offering SaaS solutions step by step, effectively getting a foot in the door, and building long-term, trusted relationships.
Conclusion: Turning Cybersecurity into a Strategic Investment
In today’s cybersecurity landscape, MSPs have a unique opportunity to transform what was once seen as a cost into a powerful profit center. By offering advanced security services like IDaaS, PAM and Secure Remote Access you can not only protect your clients but also create new revenue streams and strengthen your market position.
Don’t think of cybersecurity as just another expense—think of it as a strategic investment that drives growth and profitability. With the right approach and the right partners, such as WALLIX, you can turn cybersecurity into a cornerstone of your MSP business’s success.
