The cybersecurity environment is constantly changing – from the latest advances in AI to the threats they are aiming to defend against. This makes determining your overall strategy a challenge. What’s more, there’s no question that risks, costs, and budgets are all rising rapidly. How do you determine what an appropriate cybersecurity budget is for your organization?
It’s Hard to Find Good Benchmarks
Cybersecurity budgets are rarely disclosed publicly. Industry surveys are generally not granular enough to drill down to your specific industry and organizational size.
What’s worse is that upper management often seizes upon misleading “industry averages” that don’t factor in the specifics of your situation.
To help, we’ve created a handy cybersecurity budget calculator that takes number of critical factors into consideration to provide budget data based on realistic organizational peers.
Cybersecurity Budget Elements
When calculating your total cybersecurity budget, you must consider not just your industry sector but also the number of:
- Servers and cloud workloads
- Routers, firewalls, and security technologies
As each of these elements increases in number, so will your budget. However, it is important to remember that security budgets shouldn’t be based on linear increases. As the number of components increases, the complexity of your IT structure (and the threats you face) increases exponentially.
Traditional In-House vs Managed Security
Inhouse, outsourced, and hybrid security models can all make sense from a financial and risk management point of view depending on the specifics of your situation.
Traditional In-House Cybersecurity Operations
Many organizations like to maintain complete control over their cybersecurity operations. You have the best sense of who needs access to what, which behaviors would be considered suspicious, etc. However, the increasing number of threats popping up every day is making this choice more and more challenging and expensive—especially for mid-sized organizations.
- The shortage of skilled SecOps personnel makes staffing a constant issue
- The skillsets required are constantly changing
- It can be hard to achieve scale and redundancy
80% of security professionals say it is becoming increasingly difficult to find people with the skills they need.
68% say the skills shortage is impacting their security operations.
These elements force organizations to take a reactive approach to cybersecurity. Given the limited availability of resources, not more can be done than just handling threats as they come in. But as threats become increasingly sophisticated taking a reactive approach isn’t enough – and sooner or later a serious breach will occur.
Managed Security Provider
Using a managed security provider eliminates many of the headaches associated with providing SecOps entirely in-house and is often less expensive. Managed security providers can leverage their scale to address both staffing issues and make use of the latest tools and technologies.
Next-Gen MDR solutions use machine learning, automation, and human intelligence to rapidly detect and respond to the latest threats. This allows organizations to take a proactive approach to security by filling detection gaps and unifying security tools to get the most out of their security investments. What’s more, the scale and scope of their operations ease staffing shortages as skilled professionals are attracted to the cutting-edge work. Staff are also able to simultaneously specialize more deeply within specific skill sets while enjoying a broader range of clients and challenges.
Plus, by outsourcing routine security tasks, in-house teams are able to focus on the most critical threats they face, think strategically, and avoid getting bogged down by all the day-to-day noise.
SecOps teams can secure their organizations by taking a proactive approach to cybersecurity using Next-Gen MDR solutions.
Calculate Your Cybersecurity Budget
There is a lot to consider when it comes to calculating an “appropriate” cybersecurity budget.
As a managed security provider, we have broad experience in how many different companies approach budgeting. Of course, there is no “right” answer to how much you should spend – but if you want an estimate that is relevant to you, try our calculator, or give us a ping. We’d be happy to share our experience – and we promise we won’t try to sell to you (unless you want us to).