As we continue to find ourselves in an uncertain economy – with talk by economists of an impending recession – many small and midsize businesses (SMBs) are understandably pulling back on expenditures and postponing new spending other than what directly affects their bottom line.
In a marketplace that is overshadowed by dire reports of an upcoming downturn in the economy, it may be challenging to convince business owners not to cut costs on network security. Some will look first at allocating more funding to departments that drive profit and serve organizations' bottom lines, like website renovations, product development, and product marketing.
Money spent on office remodeling is tempting, as it will immediately provide a tangible return on investment with an improvement in employee morale, and it will impress clients.
It's easy to want to avoid spending thousands of dollars on basic IT upgrades – until, all of a sudden; your IT system comes crashing down due to a cyberattack.
Cutting IT Security Budgets Could Prove Disastrous in Post-Covid Economy
In an effort to cope with the disastrous economic effects of the Covid-19 pandemic, more than 40 percent of businesses have reduced their cybersecurity budgets. This comes at a time when Covid-19-themed phishing attacks have increased by a staggering 667 percent in just the past several months.
IT security is more important in the post-pandemic world. The pandemic has forced companies like yours to stretch networks as more employees are choosing to remain remote workers for the benefits of a healthier work-life balance and for the convenience that it affords.
As a result of this transformation in how and where we work, investing in IT security is crucial to prevent catastrophic outcomes of cyberattacks. What's it worth to exclusively direct funding to profit-related initiatives when a cyberattack could devastate your business, put sensitive customer data in peril, and significantly tarnish your reputation?
Remote work on home computers typically doesn't have the same security software as at the office. This makes more businesses vulnerable to cyberattacks. It becomes an even more serious dilemma for business owners with the new demand for remote access to services from customers and clients.
This seismic shift in where work is done has been helped along by the move to cloud computing and web apps. This places a greater demand on IT security. That is why it makes sense to increase and not decrease funding for your cybersecurity.
Decreasing Funding for IT Security May Lead to Greater Expenditures Later
If your business declines to take basic measures such as installing cyber protection and providing cybersecurity awareness to your staff, it could cost you much more in the long run. It would be better to spend the money sooner upgrading your IT security.
According to a recent IBM report, the current data breach cost for a business averages $4.35 million, and this cost will only increase yearly.
Knowing the costs involved, it is advised that your company make timely IT security updates.
What Your Business Should Spend on IT Security
As a general rule, most SMBs will spend up to 10 percent of their annual budgets on cybersecurity. Companies making less than $50 million in revenue spend an average of 6.9 percent of their total revenue on IT costs, according to a study commissioned by TechTarget.
It also becomes critical to increase your IT budget on an annual basis to keep up with cybersecurity compliance requirements. Keep in mind that you can protect your physical and intellectual property in ways that suit your needs, but as for things that your company doesn't own – partner or customer data or market information that you collect – you must fulfill your local data management and protection requirements.
Another area of IT security that warrants sufficient funding is workforce enablement to provide employees with more flexible – but secure – ways to work from home, as well as on the road or at the office.
It would also be wise to invest in any type of technology that reduces your company's need for and dependency on increasing your workforce. If your business can boost productivity without adding more employees, that will help to strengthen your bottom line.
Fortified IT Security Could Give Your Business a Competitive Edge
The emergence of an all-digital lifestyle has made customers more aware and appreciative of businesses that prioritize IT security. If you aren't able to guarantee that the data your customers provide is safe and secure, why would they choose your product or service over a competitor that has superior cybersecurity?
Being a company that has a reputation for exceptional IT security is a competitive advantage. Consumers are far more likely to use your services if you can ensure secure transactions even when they need to cut back on their expenses.
Maintaining Your IT Security is of Utmost Importance in the New Business Climate
The post-pandemic world we now live in means that cybersecurity will need to be more of a priority than before the Covid-19 outbreak. With the increased reliance on connected, online systems, companies like yours are more susceptible to a cyberattack.
Nowadays, businesses must be more diligent, strategic, and vigilant when it comes to ensuring their IT security is at peak performance.
Adept Networks Provides Your Business with the Best IT Security
Protecting the integrity of your cybersecurity should be your number one priority. After all, if your sensitive data is compromised, your entire business could grind to a halt. Lost revenues due to downtime or large fines as a result of data breaches may not be an option and might affect the overall health of your organization.
At Adept Networks, keeping your IT system safe is what we do every day. We can help by training your staff and putting a raft of technical measures in place to lessen the chances of hacking or an attack and to reduce the impact if it does happen.
Protecting your information and your customers' data is Adept Networks' specialty. Adept Networks is here to help as a leader in network security solutions.