In today’s economic climate, some business leaders may feel pressure to reduce costs. From capital to operating expenses, C-level executives drill down deeper into their balance sheets for possible cuts.
For many businesses, cybersecurity can be a significant expense that comes up for review often, even when there is no threat of a recession. While cybersecurity can be expensive, the cost pales in comparison to a data breach – no matter the size of the company. In 2022, the global average cost per data breach increased by over two percent, amounting to $4.35 million. As budgets tighten, it’s important for business and technology leaders to realize the detriment a security breach could cause the company and focus on investing in security resilient solutions designed to withstand unpredictable threats and changes.
With so many high-profile companies hit by debilitating cyberattacks on a weekly – if not daily – basis, the Securities Exchange Commission in the US has proposed that publicly traded companies must disclose whether they have a member with cybersecurity expertise on their board of directors, and will soon require companies to disclose their cybersecurity governance capabilities. Regulating bodies across APJC and EMEA have also put compliance guidelines in place to keep business operations secure.
These initiatives demonstrate the magnitude a potential cyberattack can have on a company and its stakeholders, and yet, we still see businesses reducing cybersecurity budgets to address today’s volatile economic climate. In fact, a recent study from Neustar found that only half of organizations have a sufficient budget to meet their cybersecurity needs. Additionally, more than two-thirds agree that budget constraints limit their ability to respond to security threats. This problem will only grow as businesses’ cybersecurity assets continue to age and weaken against the advancing threat landscape.
While companies look to reduce expenses, many are still in the throes of their digital transformations. Many have end of life assets that run on legacy technology and aren’t well suited for the digital infrastructure of today, meaning they need to upgrade to equipment that is required to operate and compete in today’s threat environment. Because of this, it’s important for today’s providers to work with companies that offer an accessible cybersecurity posture.
Payment solutions from Cisco Capital offer businesses an alternative way to pay for and acquire the technology they need, allowing them to structure payments around their budgets without impacting their cash flow. These flexible payment solutions allow businesses the opportunity to spread and lower costs over time with little or no upfront investment with the flexibility to keep the technology current. Cisco’s Lifecycle Pay for Secure Firewall, for example, lowers the total cost of usage for companies to update their cybersecurity posture by offering up to a ten percent incentive if they trade in their legacy firewall – independent of the legacy provider.
As businesses start to navigate their way through economic downturn and mounting security threats, it’s important they don’t allow budget cuts to deter them from enhancing their cybersecurity posture. Cisco Capital empowers businesses, so they aren’t limited by their budgets. As businesses continue to adjust expenses for 2023 and beyond, they should consider flexible payment options to moderate their spending while also meeting their cybersecurity needs.
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Good information.