Techaisle Blog

In the digital age, where data is the new gold, the midmarket is facing a silent, yet devastating crisis: a glaring lack of cyberattack readiness. A recent study by Techaisle, titled "SMB & Midmarket Security Adoption Trends," paints a grim picture, revealing that many mid-sized businesses are woefully unprepared for the inevitable onslaught of cyber threats. The numbers do not lie, and they are screaming for attention.

The $11 Million Wake-Up Call

The average financial loss from security incidents in the midmarket sector is $11 million. This substantial amount can significantly impact a company's financial stability, undermine customer trust, and potentially lead to bankruptcy. This statistic alone underscores the urgent need for midmarket CEOs and IT managers to prioritize cybersecurity.

Moreover, it is concerning that 34% of midmarket firms lack a security protocol for responding to security incidents. This unpreparedness is akin to a fire department without an escape plan. When a cyberattack occurs, these companies are often left without a clear response strategy, resulting in increased confusion and substantially higher losses.

The Shadow Pandemic of Undetected Attacks

The study also reveals that 57% of midmarket firms have experienced a security incident, and most attacks go undetected. This is a shadow pandemic, where breaches occur silently, festering within systems for months, even years, before they are discovered. The longer an attacker has access, the more damage they can inflict, stealing sensitive data, disrupting operations, and demanding hefty ransoms.

Confidence Crisis and Risk Blindness

A significant concern is the lack of confidence among midmarket leaders. 36% of these firms acknowledge their uncertainty in recovering from a security incident primarily due to inadequate preparedness. Without comprehensive incident response plans, strong security infrastructure, and skilled personnel, recovery efforts can become highly challenging, often resulting in prolonged downtime and irreparable damage.

Additionally, 35% of midmarket firms do not have established risk frameworks. This deficiency in proactive risk assessment and management increases their susceptibility to various threats, including ransomware, phishing, data breaches, and insider attacks. Consequently, these firms face substantial vulnerabilities regarding their data security.

The Security Awareness Black Hole

A significant issue is the lack of security awareness training; 72% of midmarket firms do not provide it. This means employees, the weakest link in security, are vulnerable to phishing, malicious links, and weak passwords. Without training, they can inadvertently aid cyberattacks.

Cloud Security: A False Sense of Security

Cloud has brought immense benefits, but it has also created a false sense of security. 60% of midmarket firms feel that native cloud security is not sufficient. While cloud providers offer basic security features, they are not a silver bullet. Businesses must implement robust security measures, including data encryption, access controls, and threat monitoring, to protect their cloud assets.

Underprepared and Overwhelmed

The study ultimately underscores a widespread sense of inadequacy among midmarket firms. Nearly half, 49%, perceive themselves as less prepared than their counterparts. This perception of being outmatched and overwhelmed can result in complacency and inaction, thereby increasing their susceptibility.

The Path to Resilience: A Call to Action

The Techaisle study underscores the cybersecurity vulnerabilities facing midmarket companies. However, proactive measures can build robust defenses. 

The digital landscape for small and medium-sized businesses (SMBs) and midmarket enterprises is a minefield fraught with evolving threats and escalating costs. Techaisle’s latest 2025 SMB and Midmarket Security Adoption Surveys paint a stark picture: while some metrics suggest a plateau in security incidents, the financial impact, and perceived vulnerability are on the rise, driven by factors like AI-powered threats and persistent staffing challenges. This blog delves into the key findings, offering a comprehensive look at the state of cybersecurity for these critical segments.

The Bottom Line: Escalating Financial Losses Amidst Perceived Vulnerability

Let's start with the hard numbers. The average loss for SMBs due to security incidents in 2024 surged to US$1.6 million, up from US$1.4 million in 2023. This increase, despite a seemingly stable incident rate (44% in 2024, consistent with 2023 but down from 56% in 2021 and 2022), highlights a crucial point: the attacks are becoming more sophisticated and costly. While the frequency might be leveling, the severity and financial ramifications are intensifying. Adding to the complexity, despite the downward trend from 2021/2022, a concerning 68% of SMBs feel under-prepared compared to their peers, a slight uptick from 65% in the previous year. This discrepancy between perceived incident rates and felt vulnerability indicates a growing awareness of the sophistication of modern threats and a lingering sense of inadequacy in defense mechanisms.

The Threat Landscape: AI, Attacks, and Denial of Service

Techaisle's research identifies the top cybersecurity risks as cyberattacks, risks related to the use of AI, and denial-of-service (DoS) attacks. The rise of AI as a security risk is particularly noteworthy. In 2025, 56% of SMBs anticipate new security risks stemming from AI, up from 48% in 2024. This burgeoning concern reflects the dual-edged sword of AI: while it offers potential security benefits, it also introduces new attack vectors and amplifies existing ones. The escalating concern about AI-powered threats is logical. Bad actors increasingly leverage generative AI to craft sophisticated phishing campaigns, automate malware development, and amplify social engineering attacks. This trend is not just theoretical; it’s a tangible threat that SMBs are grappling with.

In today's interconnected and threat-prone digital environment, securing print infrastructure is more crucial than ever. Businesses of all sizes require robust and comprehensive security solutions to safeguard sensitive data and ensure compliance. Print security has become a significant topic of discussion in the industry, given its essential role in protecting confidential information and mitigating cyber risks. Despite often being overlooked, printers and multifunction devices manage highly sensitive documents such as architectural plans, legal contracts, and financial records, making them potential vulnerabilities.

In addition, the rise of hybrid work has increased the focus on print security. As employees print and scan from various locations and devices, traditional security measures are no longer sufficient. Printers also act as network access points, which can be potential entryways for hackers to infiltrate systems. This increased risk, along with regulatory compliance requirements in industries such as finance and legal services, has made print security a key topic in IT security discussions. Businesses are now acknowledging that implementing secure print and scan solutions are essential not only for protecting physical and digital documents but also for maintaining their reputation, client trust, and business continuity in a complex threat landscape.

Xerox addresses the challenges of print security in the modern distributed workplace through a multi-faceted approach. The company takes a comprehensive approach to print security that includes device security, fleet management, and digital services. Xerox aims to be the print industry's most secure and trusted provider, which drives continuous improvement in its products, services, and infrastructure security. This Techaisle Take examines Xerox's security strategy, key offerings, and how it differs from competitors.

A Vision of Security and Trust

Xerox's vision is to be the most secure and trusted provider of workplace services. This commitment is driven by an executive mandate to continuously improve the security of its infrastructure, products, and services. To achieve this, Xerox has adopted the NIST Cybersecurity Framework (CSF) as a baseline for measuring and improving its cybersecurity program. Xerox tracks its security investments by mapping them to the NIST CSF and measures outcomes against desired targets. This framework ensures a systematic approach to security, aligning with industry best practices.

Techaisle's SMB and Midmarket security adoption trend survey research underscores the critical role of governance in today's complex IT landscape. The findings reveal that 36% of organizations identify a lack of governance as a significant impediment to successful AI project implementation. Additionally, 42% cite governance as a barrier to adopting cloud communications solutions. These challenges highlight the need for robust governance frameworks. Encouragingly, the survey also indicates a strong emphasis on security, with 58% prioritizing governance, risk, and compliance as essential components of their overall security strategy.

In the SMB context, "governance" is a concept akin to "taste" in interior design or "sustainability" in supply chains: universally acknowledged as essential but notoriously challenging to define. What is clear is governance's crucial role in safeguarding SMB interests, encompassing risk mitigation, regulatory adherence, and brand protection. It represents the collective vision of an organization, shaping its interactions with customers, partners, and the public. The term "governance" is often appropriated by IT departments, leading to discussions around IT, cloud, or data governance, obscuring its broader organizational implications.