Techaisle Blog

According to a survey of 2035 businesses conducted by Techaisle, cybersecurity breaches cost SMBs (1-999 employees) an average of US$1.2 million in data, productivity, compliance and regulatory expenses, and staffing costs. In contrast, upper-midmarket firms (1000-4999 employees) suffered an average loss of US$28.6 million. The research also revealed that 56% of SMBs and 88% of upper midmarket firms experienced at least one cyberattack in the past year.

SMBs and midmarket firms recognize that a security breach can have significant business implications. When asked about the potential impact of a breach, 54% of firms stated that it would damage their customers’ privacy, 49% believed it would erode customer trust in their business, and 44% saw it as damaging to their company’s reputation. Nearly one-quarter reported that a breach would have a substantial negative impact on their bottom line. Security is not just an issue but also a critical factor in defending against threats to trust, compliance, and financial viability.

Security is a critical concern for SMBs and midmarket firms. While technology is essential for productivity, growth, and profitability, it also exposes businesses to potentially devastating security breaches. Many SMB firms practice “security through obscurity,” hoping that attacks will target larger organizations while they keep a low profile. However, with enough hackers, scammers, and cybercriminals to go around, every conscientious SMB executive must address security threats and take action to safeguard their business against other threats, such as loss of customer trust, compliance with laws and regulations, and loss of financial solvency.

Techaisle survey indicates that SMBs have IT security on their agendas, with 85% of SMBs and 100% of upper midmarket firms considering it a critical concern. A closer look at the findings shows that other important issues for SMBs, such as cloud and hybrid work, cannot be implemented without an effective security approach.

OpenText's transformation from a Canadian document management company to one of the world's leading software providers is nothing short of remarkable. The driving force behind its growth has been a focus on cloud-based solutions, which led the company to go on an acquisition spree, bringing several specialized companies/brands under its umbrella. Cybersecurity is one arena where OpenText has taken a deliberate approach over the last decade with multi-billion dollars of capital investment to bring together critical purpose-built solutions to provide holistic coverage to its customers.

The company’s acquisition of data protection provider Carbonite (ninth cloud-specific acquisition overall) and endpoint/threat intelligence software provider Webroot marked a significant milestone in its quest to create a single, unified, and robust security portfolio.

With the Carbonite and Webroot acquisitions, OpenText became a go-to option for managed service providers (MSPs) and small and medium businesses (SMBs) seeking a one-stop shop for security and data protection, filling a void in the market with its broad portfolio. Experts have opined on OpenText’s offerings: “It's one vendor, one brand, one program, one partner strategy, one go-to-market, so small customers and partners don't need to work with multiple vendors. OpenText Cybersecurity can provide all of it."

However, this was just the beginning. OpenText's subsequent acquisitions of email encryption software provider Zix, security software provider AppRiver, Network Detection and Response provider Bricata, and enterprise software provider Micro Focus further strengthened its position in cybersecurity. The approach to consolidate all security and data protection services in a single platform – serving as the foundation to deploy the right capabilities and manage and administer their environment has made things easier for customers of all sizes. In addition, OpenText's comprehensive portfolio provides a robust and reliable option for businesses seeking to enhance their cyber resiliency. In the following sections, we will explore OpenText's trajectory to becoming one of the leaders in the cybersecurity domain.

It is the best of places; it is the worst of places. The famous opening line echoed from the Dickens masterpiece “A Tale of Two Cities” describes a period in which opposites – wisdom and foolishness, light and darkness, hope and despair – exist side by side. The events and depths of emotion described in the novel are much more extreme than the scenarios cloud and overall IT adoption presents to businesses. But the notion that there are opposing elements of opportunity and requirement associated with the cloud would ring true to SMB and midmarket executives, who need to balance the new business outcomes that they can achieve via cost-effective cloud/IT solutions with the need to safeguard users, data, and applications from malicious intruders. The upside is competitiveness in a fast-moving economy; the downside is destroying customer relationships and corporate reputations at the core of business success. Where is the safe middle ground – the approach that results in optimal business protection and access to the upside associated with cloud/IT solutions?

The market is buzzing with discussions on zero trust (ZT). A Techaisle survey of 2035 SMBs and Midmarket firms shows that 8% of small businesses, 46% of core-midmarket firms, and 69% of upper midmarket firms know of ZT and that 21% of SMBs and 64% of midmarket firms consider its adoption either very important or important. Critical reasons for adopting zero trust include reducing insider threats, breach prevention, compliance, mitigating endpoint threats, and managing hybrid IT and remote work security issues.

However, most firms need to be made aware that ZT is not a product but a framework that requires a focus on the journey and strategy. Regardless, 14% of “in the know” SMBs and 35% of upper midmarket firms have begun planning their investments in ZT technology, initially focusing on identifying their critical digital assets and security vulnerabilities.

Techaisle research shows that the SMB and Midmarket spend on IT security will likely be US$84.2 B in 2023, an increase of 9.6% from 2022. IT security is the 2nd top priority for SMBs and 1st priority for core midmarket and upper midmarket firms. Between 55% and 54% of firms consider preventing cyberattacks a priority. 52% of SMBs and 71% of midmarket firms experienced ransomware attacks last year. Similarly, 56% of SMBs and 88% of midmarket firms had cyberattacks. Yet only 32% of SMB and midmarket employees understand phishing. Only 15% of employees have had security awareness training. At the same time, 41% of SMBs and midmarket firms are sure that 100% of their employees have access privileges beyond what they require. The two most significant challenges are implementing security cost-effectively and meeting business requirements.