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Tuesday, September 01, 2009 8:55 AM/EST

SMBs Opening Wallets for New Security

Signs are generally pointing in the right direction for an economic recovery, and businesses are preparing to open their wallets to refresh tired, old systems. That's good news for solution providers and, in particular, security resellers who will be dragged into nearly every system purchase.

A new survey by Spiceworks, the global community of IT professionals and service providers, found that two out of three SMB IT decision makers plan to add new hardware to their networks within the next six month. On average, SMBs are allocating 37 percent of their IT budgets to hardware purchases in the coming year. This is welcomed news, since these same businesses had been sitting on aging infrastructure and extending the service life of hardware to 50 months or longer.

Roughly one-half of SMBs say they'll add new software to their inventory, too. Security tops the list of software purchases, with 32 percent of the survey respondents saying they'll add protective measures such as anti-virus, anti-spam and other software packages to their IT investments. An additional 25 percent plan to add backup and recovery capabilities to their mix. Roughly one-quarter to one-third of those adding these technologies will opt for a cloud-based service.

Sounds like pure goodness, but the truth is that solution providers will need to push security rather than expect SMBs to simply ask for it. Earlier this year, Channel Insider's 2009 Market Pulse Report noted that end users are actively seeking new offerings such as smartphones, virtualization, handheld and mobile devices, and productivity software. Security didn't even make the top 10.

End users are conditioned to ask for applications and security measures such as firewalls, anti-virus software, anti-spam solutions and, perhaps, wireless security. But those security measures are pretty much table stakes. What the Spiceworks survey indicates is that solution providers must impress upon SMBs the importance of comprehensive security measures that are tailored to their risk exposure and operational threats.

Surprising from this survey is that only a fraction of SMBs are considering cloud-based security and backup services. Managed and hosted services are, in many cases, perfect fits for SMBs, since they don't require infrastructure investments or significant staffing support. The recent Channel Insider/CompTIA Security Assessment Study found that solution providers have a roughly equal chance of selling a managed services or on-premises technology during a security sale.

If SMBs are truly getting ready to open their wallets, don't expect the dollars to flow fast or easy. While it takes time to design systems that are right-sized to the threat, it will be well worth the effort. Solution providers that devise sound security systems with a demonstrable benefit will win the lion's share of the SMB security spend.

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Comments (3)

Security and data loss risks are a key concern for SMB's but not all of us savvy on what to do about it. Nice job of pointing out to supplier community the need to educate and offer viable solutions. This will become even more important as long awaited "convergence" models are developed involving both system, site and mobile security integration.

I agree that the supplier community must do a better job showing "value" in the scheme of IT spend, especially for Security. Keep up the good job of making the vendor community work for its money verse just riding the trend waves!

It's nice to see some corroborating survey results from what we have been seeing. I agree that SMBs need to know the importance of comprehensive security measures, and while I think the solution providers do need to stress its importance to their customers if they don't have the expertise in-house don't be afraid to partner with a dedicated MSSP (Managed Security Services Provider).

Master MSPs have been around for a while in the network management (desktops/servers) with services like Ingram Micro’s Seismic and Zenith Infotech. And as long as the service provider knows and trust that the MSP they are partnering with isn't going to get into their business it makes perfect sense to team-up. As a Master MSSP we have been providing security services to SMB VARs for a few years now. I think everyone likes the idea of steady services revenue.

SMB's need to know that their security services partners understand the issues they are facing, be it HIPAA or PCI. As Healthcare SMBs move into digital medical records, or Retail SMBs migrate from the old dial-up base card authorization systems to Internet based systems, security has to be at the top of their list of "Must Have's" By choosing a managed security solution they get the best of both worlds, cutting edge technology and manageable monthly costs. As a solution provider working with a MSSP partner they will benefit as well from the increased emphasis on security with product and services sales on the network.

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