Businesses can have a tough time figuring out how much to spend on cybersecurity. Many entrepreneurs and CEOs are confused and looking for some expert opinion. Do you know how much you need to set aside to protect your business from cyber-attacks?
On average, a business will need to dedicate 0.2% to 0.9% of its revenue for cybersecurity. You may have to spend between $1,300 and $3,000 per full-time employee to protect your organization. Some businesses may need to spend more based on:
- The number of employees and digital assets
- Risk appetite and level of probable threats
- Type of data it deals with
- Cybersecurity products and services used
- Level of cybersecurity service opted
You need to be familiar with many nuances to find out the actual cost of cybersecurity. Fortunately, we will cover each of them in our blog to help you make an informed decision.
How much does Cybersecurity Cost?
It is not very easy to pinpoint an amount for cybersecurity. The final cost depends on a range of factors that we will discuss in a while.
According to Deloitte, the financial industry spends 10% of its IT budget on average on cybersecurity. A general business may need to allocate 0.2% to 0.9% of its annual revenues to drive cybersecurity initiatives.
Looking at it another way, you will need $1,300 to $3,000 for each full-time employee to protect your business.
Large enterprises like Microsoft spend $1 billion to drive cybersecurity initiatives.
Company size determines cybersecurity costs.
Businesses with a large number of employees will need a higher cybersecurity budget. They will need to secure more employee accounts, devices, and networks.
Additionally, big businesses are often the target of hackers and need foolproof protection.
Type of data is another factor.
You will need more money to protect data that comes under compliance. For example, you need a bigger budget if your data falls under HIPAA or PCI to ensure privacy and prevent breaches.
Cybersecurity products and services also influence costs.
What is the Average Cost of Cybersecurity Services?
Cybersecurity companies provide cybersecurity services to protect businesses from cybersecurity threats. However, businesses with the required expertise and skills can manage their cybersecurity program. Here is a look at what different approaches to cybersecurity cost a business:
The average cost of an on-premise cybersecurity setup is $57,300 per year.
Under the traditional approach, the organization is responsible for handling all cybersecurity needs. As a result, the business will need to spend on hardware, software, security tools, and staff. It will need to run everything on-premise and manage all processes internally.
According to Kaspersky, such a setup can cost a business $54,300 on average per year. In addition, companies also need to pay one-time costs of around $3,000.
Using cloud-based security solutions can incur $33,500 annually on cybersecurity.
Businesses can use cloud-based cybersecurity solutions to protect IT infrastructure and digital assets. The cost will come down to approximately $33,500 per year, according to Kaspersky.
Outsourcing cybersecurity services can cost $36,000 every year.
Businesses can choose to avail services from outsourced cyber security partners. The average cost of such an arrangement can be $36,000 annually, as per Kaspersky.
The cybersecurity partner provides all resources and expertise for a hands-off approach.
What Determines Cybersecurity Services Pricing?
How much a cybersecurity company charges for its services depends on a range of factors. In addition, top providers like Norton or Kaspersky have higher rates than other providers. The following are some factors that influence cybersecurity services pricing:
The level of service impacts the cost of cybersecurity.
However, a small business that sells garden supplies may not need such priority support.
A dedicated chief information security officer (CISO) can increase prices.
A CISO develops and implements cybersecurity programs. You may need to pay a higher price if your cybersecurity service provider offers a dedicated vCISO to overlook your business.
Advanced cybersecurity service plans that cost more generally give you a dedicated CISO.
The size of your cybersecurity team can influence pricing.
Businesses with big operations will need more people to look after cybersecurity. You can expect to pay more if your cybersecurity provider assigns you a big team to protect your business.
How to Determine Your Cybersecurity Services Cost?
Every business should be aware of what it needs to do to stay safe from cyber threats. The list of requirements will vary based on your company size, service provider, and more. However, you can try to work out an approximate cost to pick the right quote.
Conduct a cybersecurity audit to discover gaps.
Businesses can find out where they lack by conducting a cybersecurity audit. It will uncover the areas where you need to invest in cybersecurity to become resilient. You can then find out what it would cost to address the shortcomings.
Check your in-house talent and skills to determine cost.
You will need experienced folks to manage your cybersecurity program. As a result, you can save money if you have such talent in your in-house teams. Otherwise, you will need to hire personnel or rely on your cybersecurity provider for added costs.
Research cybersecurity tools and solutions to get an idea of costs.
Every business will need a range of tools and solutions to stay safe from cybercrime. Research different products available in the market to become familiar with their costs and offerings. The process will help you choose cost-effective options without compromising quality.
What is Included in Cybersecurity Services Contract?
Your cybersecurity service provider will sign a contract that includes what they will offer. It is an agreement of the standard of service you can expect. Many contracts will also guarantee performance metrics, like daily backups or 24/7 monitoring.
Here are the common elements you can find in a cybersecurity service contract:
Your contract will come with a list of cybersecurity services offered.
Cybersecurity companies mention all the services they are going to offer in the contract. Some examples of services are:
Payment details will be a part of the contract.
Your contract can contain how much, when, and how you need to pay your provider. Of course, the details will be worked out after both parties agree.
Your contract can come with a service level agreement (SLA).
SLA is a qualitative and quantitative agreement of the level of expected service. You will have several metrics to determine how your provider is performing. Not meeting SLA terms can allow businesses to terminate their contracts with the provider.
The contract can contain information about all product licenses.
Your cybersecurity provider can mention licenses you are allowed to use as a part of the services. These can be licenses to web application firewall, antivirus, and other resources.
Cybersecurity services can cost a business $1,300 to $3,000 per full-time employee. You can dedicate up to 10% of your IT budget for cybersecurity or up to 0.9% of your company revenues. Work with a reliable cybersecurity company to get the most out of your investment and optimum protection.