SIA 2019 Security Megatrends 3 & 4 – What You Need to Know

This post, we are doing a deeper dive into SIA’s 2019 Security Megatrends 3 and 4. Let’s begin with Megatrend 3 …

Megatrend 3 – Is Security Keeping up with Cloud Computing?
Are cloud computing and security on par? The short answer is no, at least according to widely held perceptions. The residential and consumer markets have faith in cloud security, especially since they’re more focused on the cloud’s unparalleled convenience and ease of use; however, on the commercial front, possibly because there’s more at stake, businesses are skeptical.

The SIA’s 2019 Security Megatrends report quotes Harry Regan, the Vice President of Securicon, as saying, “Everyone thought the cloud would be more secure, and it wasn’t. That reality and some of the data have kind of made some chief information officers a little gun shy of new things.”

They have several reasons to worry about cloud computing and security:

  • There’s a lack of regulatory compliance standards, which is not acceptable to high-risk and government users and prevents further adoption.
  • They’re not sure how and if it’s possible to ensure privacy by permanently segmenting and removing some customers’ data.
  • There could be an about-face. If cloud computing loses favor as a safe method of security management, companies will seek other solutions.

Despite the perception, many respected companies trust in the cloud. Without the cloud, digital driven Netflix, Pinterest, Dropbox and so many others contend that they couldn’t operate their business models as efficiently or as securely. Physical security continues to move to the cloud model as well, migrating to SaaS, cloud computing and managed services. These entities are attracted to its convenience, scalability, safeguards, efficiencies and other benefits.

By 2022, IHS Market predicts, the global off-premises cloud service market revenue will reach $414 billion. If the cloud is not secure, this will pose astronomical cybersecurity issues.

Will Edge Computing Edge Out the Cloud?
In recent years, edge computing has become more popular due to new generations of technology and increased flexibility. Edge computing refers to a distributed computing model where the large majority of computations are made on nodes like smart devices, IoT or edge devices, versus the centralized cloud. They are so named because of their proximity to an enterprise, metropolitan or other network, not the cloud. Since the server resources, AI and data analysis are closer to the data collection source, edge computing helps platforms like smart cities, ubiquitous computing and physical computing as well as applications like AR, cloud gaming and the IoT.

What at first seems like the antithesis to the centralized distribution of the cloud may actually be a synergistic force. The SIA report predicts that cloud computing and edge computing will develop concurrently and synergistically, since cloud services will be managed on centralized servers as well as in distributed servers on premises and also on edge devices, which are growing more stable and reliable.

Only the future can tell which way cloud and edge computing will grow.

Megatrend 4 – The Security Skills Shortage and 5 Ways to Overcome It:
The challenges of workforce development and finding skilled security professionals at every level is a new trend for the report, but it’s no less important, especially since it clocks in at number four.

The overall job unemployment rate is at an all-time low, so this troubling security skills shortage trend is an anomaly. Even though security is a high-tech industry, it’s not always recognized as such or give that cache. Add in the relatively new fields of cybersecurity, AI and privacy expertise to the traditional IT and networking skillset, and it becomes even harder to find the right people.

According to the SIA report, filling the pipeline with younger workers may be the key to counteracting this dilemma. Most importantly, the industry needs to re-frame its image as progressive, innovative and IT-centric to make it imminently more attractive to job seekers.

Five Ways to Overcome the Deficit:
Provide Big Picture Benefits: Security jobs must promise work-life balance and the potential for growth that other industries are offering.

Leverage AI: Your HR team can use AI to screen candidates, automate interview scheduling and even ensure constant contact throughout the hiring process.

Try the Gig Economy: This model is thriving, and is a great source of talented workers that can be tapped long term or even temporarily.

Partner with local colleges and technical schools: You’re the experts in your field. Share this knowledge with schools by providing lecturers so you can engage new talent first hand.

Start at the Beginning: Focus on entry-level positions and then increase expertise with in-house training to ensure that their training is current and applicable.

These two trends will make a big impact on the security market this year. Both suffer from perception issues. It remains to be seen whether they can be readily addressed to pave the way towards both greater cloud adoption and greater security workforce numbers.

Security Providers’ Changing Role


Security Providers’ Changing Role

A Closer Look at 2018 Security Trends:  How are the Roles of Security Providers Changing?

One of the biggest trends in 2018 security is change. Nowhere is this more evident than in the market itself, where companies ranging from industries that wouldn’t ordinarily handle security, like Comcast and Amazon, to start-ups eager to cash in on a hot market, increasingly enter the residential security scene. They are shaking up the landscape and changing the services being offered as well as the revenue models that drive them.


We reviewed how mobile device security and the use of the cloud are both augmenting overall security in our last post. As we move forward into 2018, the changing role of security providers is a trend that will also strengthen the residential security industry.


Trend 7:  Security Providers Are Changing

There’s no typical security provider these days. Both IT-focused companies like Best Buy and start-ups like August Home (recently acquired by ASSA ABLOY) are jumping into the traditional residential security monitoring services business. Harnessing the cloud and the IoT, many of these companies are offering everything-as-a-service with convenient tie-ins to smart devices.


Traditional security providers have picked up the trend as well, changing the subscription model to a month-to-month payment plan. With this freedom comes the death of the typical security services contract.


Security Industry Best Practices:  How Can Providers Adapt to the Players?

Providers must stay on their toes to move with this market. With so many new and powerful players in the game, security providers need to add value wherever possible to enhance the consumer experience while providing the convenience and smart features they’ve come to expect. Differentiation is everything. If a security provider can offer superior services, they will stay ahead. Service is prized over price; consumers will not be as price sensitive moving forward for this reason.


Within the services themselves, we’re moving from a heavy emphasis on product sales to cloud-based services. Therefore, the shift is towards security services, not installation of monitoring or deterrent devices. Flexible providers that harness these trends will move ahead.


In fact, IST is right on top of this trend. In addition to our 20+ years of security expertise protecting people, property and data in the enterprise market, we’ve embraced the move towards cloud-based services and are up-to-the-minute on leveraging the cloud for your utmost security using your existing systems or deploying new solutions. We also stay competitive by offering affordable month-to-month subscription style plans for our customers’ convenience.


Trend 8:  Entrepreneurs Enter the Security Scene

Entrepreneurs want a piece of the security action too.


Their relentless focus on data analytics, convergence and IoT are pushing the residential security industry forward faster. It’s a win-win for both providers and consumers, although the market is tightening with these new entrants. Multi-system operators (MSOs) like AT&T, Comcast and Cox Communications upended the U.S. intrusion market from 2013 – 2015. Likewise, start-ups made their mark. In fact, IHS Markit noted that companies that were two years old or younger claimed over nine percent of global consumer video-camera market revenues in 2016, up from just six percent one year before.


Security Industry Best Practices:  How Can Providers Adapt to the Game?

The players have changed and so has the game. In addition to dealing with the challenges of shifting from hardware and project focused work to a service, maintenance and remote monitoring model, subscriber acquisition costs (SAC) are up and recurring monthly revenue (RMR) margins are down. Technology obsolescence has increased, so manufacturer and service providers are also grappling with shorter product development cycles. Companies that can keep up with these changes will come out on top in the residential security market.


Additionally, consumers are demanding interoperability among their devices and services for streamlined experiences. Companies need to work together to create interoperable standards so consumers can integrate their current security devices.


Again, IST is following this trend closely on the enterprise side. We monitor all new security products and remain manufacturer agnostic so that you get the solution that works best for your needs. We also help you integrate these updated security solutions to keep them interoperable with yours.


Our last entry in this series will explore how cyber-breaches are becoming more common for physical security, and we’ll look at how everyone in an organization needs to play an important role in mitigating these risks. IST has solutions for these and your other most pressing security concerns. To learn more, contact us here.



Mobile Device Security and Cloud Security

Mobile Device Security and Cloud Security

A Closer Look at 2018 Security Trends: How Can the Use of Mobile Devices and the Cloud Increase Our Security?

As consumers and businesses embrace the cloud and its promise of even greater mobility, the future seems bright.


The cloud has been integrated with physical security, enabling more efficiencies and greater peace of mind at less cost. Consumers conducting their lives through their mobile devices are happy to feed this trend by purchasing security services online and are using their phones as credentials.


Our last post covered leveraging smart data and social media to increase security capabilities. Mobile device security and the cloud are also reshaping the security industry in positive ways.


Trend 5:  Mobilization

We love our mobile devices. Globally, we reached a record high of 17.5 billion connected devices in 2017. By 2023, that number is expected to increase to 31.6 billion (Source:  Ericsson Mobility Report, November 2017). Their convenience and connectivity makes them an indispensable part of our days. Consumers use mobile devices to access work documents, as well as check in on home monitoring devices like cameras and thermostats. Most trust them to send payments or serve as credentials.

The Gartner “Predicts 2017” report forecasts that 20% of organizations will drop traditional ID cards in favor of using mobile credentials by 2020. This growing trust aligns with the proliferation of cloud-based physical access control systems (PACs) that allow entry. We’ll move away from proprietary access control to cheaper, more efficient open systems in the cloud.


Mobile Device Security Best Practices:  How Can Providers Help?

To keep these devices secure, manufacturers increasingly incorporate more sophisticated security features. Apple’s iPhone X uses the biometric “Face ID” to unlock the phone and can also complete financial transactions. reported that higher education and healthcare end-users are starting to use Bluetooth readers in their access control systems. Biometric apps also help visitors gain entry by ensuring the right person is using the credentials on the phone.


It’s a win-win for consumer and security company alike. With mobile credentials, the user benefits from the convenience of integrated systems—and security providers can offer new services and thus open up new sources of revenue.


Trend 6:  The Cloud Continues to Grow

By 2020, Gartner predicts 90 percent of organizations will use a hybrid infrastructure (including cloud services) to house their data. There are several important reasons why consumers and businesses are adopting the cloud so readily. Its value propositions are hard to ignore:

  • Easy connectivity
  • Convergence and integration with IoT
  • Mobile technology
  • Increasing number of applications and services


Additionally, cloud security has strengthened in recent years. Companies such as Airbnb and Uber operate solely from the cloud, eschewing traditional brick and mortar facilities and placing their trust in this new business model.


Cloud Security Best Practices:  How Can Providers Help?

Security providers must leverage the cloud to oversee physical security through software-as-a-service (SaaS), cloud computing and managed services. This is done to capitalize on its safety, scalability, efficiency and accessibility while reaping the benefits of recurring monthly revenue (RMR). They can also provide remote testing and maintenance, system resetting, scheduling and credential administration, essentially offering total solutions that cover all system installations.


The cloud is attractive to integrators for other reasons as well. Its built-in security with two-factor authentication, encryption and SSL certifications is certainly important, but the safety features don’t end there. The automatic backups, disaster recovery systems and continual updates also make it an ideal repository for securing information.


Since the cloud is also hardware agnostic, most devices can easily gain access. This eliminates the need to update costly equipment as frequently and also makes it easy to add devices. It’s no wonder that providers applaud the cloud’s growth.


For our next entry in this series, we’ll discuss the changing landscape of security providers and the entrepreneurial invasion into this sphere. As the world of security changes, IST continues to be a driving force for innovation. For more information on how IST can help you capitalize on these trends in security, contact us here.


IoT Security Best Practices

IoT Security Best Practices

A Closer Look at 2018 Security Trends: How Will Providers Secure the IoT and Our Increasingly Connected World?

With Amazon Alexa on your nightstand, your Nest thermostat watching your energy consumption and your Samsung “fridge of the future” letting you know when you’re low on ketchup, you’re likely interacting with an ever-growing collection of devices and receiving their analytics in real time.

Our last post covered the ten largest trends transforming the security market today. We’ll delve into the first two here; they are perhaps the easiest to observe since the Internet of Things (IoT) is exploding with unprecedented growth. 

Trend 1:  The IoT is Taking Over

It’s true—we’re fully in IoT age. Gartner Inc. projects that the planet will contain 20.4 billion connected devices by 2020. Out of 20.4 billion, 12.9 billion would be consumer-related and 7.5 billion would be from businesses, up from an 8.4 billion total in 2017. While consumer devices eclipse enterprise devices by their sheer number, businesses used 3.1 billion connected “things” in 2017 and clocked in at the majority, 57 percent of spending for IoT in 2017.

Whether for business or not, each and every connected device or appliance is at risk for security breaches.

Internet of Things Security Best Practices:  How Can Providers Secure the IoT?

Both vertical and cross-industry IoT uses abound. While process sensors for electric generating plants and real-time location devices for healthcare lead the IoT’s growth, cross-industry uses that cut across silos are forecasted to outpace these in the next year.

These crossovers include items like LED lighting and physical security systems that can be applied virtually anywhere. For 2020, it’s projected that vertical industry-specific devices will number 3.2 billion units and cross-industry will be 4.4 billion.

By 2018, IDC Research predicts that 66% of these networked entities will suffer a security mishap. That’s where security providers come in. Using predictive modeling and situational awareness to stay ahead of hackers, they can help keep this IoT running smoothly. In the coming year, their current focus on client data will shift to client safety, industrial industry operations and national infrastructure, as these sectors become more vulnerable.

Trend 2:  Everything Will Be Connected

As everything we rely on becomes connected, security becomes one more piece of the connectivity puzzle. Consumers will expect a seamless service, along with convenience and easy integration with other systems. What began as finite security systems now encompasses a much wider range of solutions:  video, smart sensors, water detection, automating devices and even energy-managing devices.

Businesses salivate at this connectivity and corresponding built-in security because they see the greater ROI payoff in energy and lighting savings, among others. 

Internet of Things Security Best Practices:  How Can Providers Secure Everything?

As the new smart home sensors reach an unimaginable 4.5 billion by 2022, the building and managing of homes will undergo unfathomable changes, starting in 2018. Looking just a few years ahead, almost every IoT device we own will have a sensor and will feature voice control, AI and analytics. These devices will tie into home security, manage water and energy use, automate regular functions, and provide remote access. The Security Industry Association (SIA) even speculated that Amazon Alexa and Google Home would offer security systems soon.

Both traditional and new security providers are shifting to service the market with DIY or self-install equipment. Security providers must offer services specifically designed for these connected systems and follow with excellent customer service since consumers are used to seamless functionality.

One boon to providers is that many of these services can be performed remotely, saving them site visits and their corresponding costs. On the business front, the security providers that can provide these new services to enterprises will reap tremendous benefits as they seek to save their clients money and time as well.

Our next two trends touch on Big Data. We’ll explore how we’re digesting it better and faster and how we disseminate it in real time harnessing the power of social media. The pace of change is fast, but IST is on top of it. For more information on how IST can help you leverage these exciting trends, contact us here.


The 10 Security Trends to Watch in 2018

Security trends to look out for in the new year

“We are living in the most exciting times in the history of modern technology,” notes Steven Van Till, President and CEO of Brivo and Chairman of the Security Industry Association (SIA) Standards. “Technological currents have converged and amplified and remixed with each other to accelerate the pace of innovation. Now, physical security is no longer just physical—modern security systems are cyber-physical systems, inheriting both the power and pitfalls of the digital world.”

As the security sector undergoes enormous evolutions, both innovations and exploitations will proliferate.

At the end of 2017, the SIA’s annual Securing New Ground (SNGTM) Conference collected 2018 security trend predictions from the experts. From the minds of top security executives, new entrants to the marketplace, investors and SIA’s contributing specialists came the second ever “Security Megatrends ReportTM.”


The report notes that while the industry has seen a marked growth in physical security, information technology, logical security and cyber sectors, security has been greatly influenced by sea changes in our daily technology capabilities. The Internet of Things (IoT) is transforming the landscape. Physical security enterprises now incorporate Big Data and Artificial Intelligence (AI), and mobile devices increasingly monitor and manage our security.


We’ve recapped these megatrends here:


  1. The IoT is Taking Over: This makes life easier (and more vulnerable) for all of us. In 2017, consumers and enterprises spent almost $2 trillion on the 8.4 billion connected devices and their corresponding services. That number is expected to balloon to 50 billion devices by 2020, and security breaches will grow commensurately.
  2. Everything Will Be Connected: Tomorrow’s smart homes will monitor and report real-time analytics on how every system is faring. As consumers continue to embrace this connectivity and the cloud, security providers will be able to help with more systems, including lighting and energy management.
  3. We’re Making Swifter Sense of Smart and Big Data: By 2020, each person will generate 1.7 megabytes of new information per second. Add the data generated by sensors, medical records and corporate databases, and only AI and Augmented Reality (AR) can reasonably organize and analyze this incomprehensible volume. Security companies must find ways to protect this data with ever-evolving smart cyber controls.
  4. Social Media Aids Security: As a wide-reaching communications tool, social media will assist with more real-time emergency communications, relying on an increasing ability to geographically pinpoint specific individuals who may be affected by disasters relayed to them through video surveillance.
  5. Mobilization: Smartphones are already indispensable. With biometric recognition and credentials capabilities, they’ll become our mobile physical access passes. Security companies are also deploying cloud-based PACS.
  6. The Cloud Continues to Grow: Increasing connectivity plus convergence and integration with IoT, mobile devices and other solutions means that more businesses and consumers are embracing the cloud. Security providers will be offering more cloud hosting services, which have the added benefit of ingrained cybersecurity features.
  7. Security Providers Are Changing: The role of security provider is constantly evolving, especially in offering everything-as-a-service. Newer companies without IT backgrounds will continue to move into the market with interactive products, DIY management and self-installation. Month-to-month contracts will replace longer commitments.
  8. Entrepreneurs Enter the Security Scene: Outside companies, startups and IT-focused companies are realizing the security marketplace’s value and augmenting the segment with data analytics, convergence and IoT; models are moving away from security monitoring-based revenue to providing greater product innovation.
  9. Physical Security is Increasingly at Cyber-risk: The number of cyber threats broke a record in 2016, and ransomware’s use as an insidious extortion tool has grown. Security companies are looking to strengthen physical systems and add cyber safeguards. As a result, cybersecurity as a service will grow.
  10. Everyone’s Responsible for Risk Management: Business security risks abound, crossing corporate silos from HR to IT, to relationships with suppliers. All departments must work together with security providers to predict and identify physical and cyber-risks and then create comprehensive plans to mitigate and eliminate them.


2018 promises more and bigger changes in the security realm. IST welcomes these innovations, as a security provider that has always been on the cutting edge of technology. From offering cloud hosting services to integrating our VMS technology with AI, to providing mobile device operated security systems, we’re always seeking out the best ways to keep your physical and cyber-world secured.


We’ll explore each of these trends in greater depth in our upcoming posts. For more information on how IST can help you leverage what’s to come, contact us here.

Top Five Blog Posts of 2017

Click through our most popular posts from the year!

  1. Eliminate the Knowledge Gap


  1. Do Certifications Make a Difference?


  1. The 411 on Hosted and Managed


  1. Find the Right Security for your Business


  1. Meet SHIELD

How Do I Find the Right Hosted or Managed Services Provider?

8 Things to Check

We’ve talked about how you can make the business case for moving to a hosted or managed security solution. So once you’re ready, how do you choose? There are a number of providers out there, so you can start by using this checklist to help you find the right one for your company’s needs:

  1. Services: Do the provider’s services align with your company’s current AND future needs?  Some services seem like a good fit now, but are they scalable so they can grow with your company? Thinking a few years ahead will save you trouble and money down the road.


  1. Cultural Fit: Are your security priorities their priorities too? It’s important to discuss what’s crucial to you and your business. Whether it’s receiving daily security updates, getting in-house personnel training (a hosted solution benefit) or partnering with specific vendors, you need to know their philosophy. When dealing with the delicate aspect of security, it’s reassuring when your provider responds to threats appropriately and sees eye-to-eye with you on security needs.


  1. Third Party Verified: Make sure you have a SSAE16 or ISO-certified data center to achieve compliance with HIPAA, SOX or PCI DSS. Those requirements vary per business.


  1. Employee Certifications: Providers with certifications have taken the time and money to validate their employees’ credentials. You can feel good about partnering and trusting them with your data.


  1. Employee Trustworthiness: It goes without saying that a security company should have impeccable standards here. Make sure they’re screening their employees thoroughly with criminal background checks, drug testing and security clearances if applicable.


  1. Manufacturer Relationships: Providers with strong manufacturer connections have an edge in an emergency—and will generally provide greater ongoing service. Check partner status, certifications and if the provider has direct access to the manufacturers’ L3 engineers. This can show you how committed the provider is to its manufacturers’ relationships and ultimately to you.


  1. Datacenter Security: Is their datacenter equipped with high-security measures? Do they have biometric authentication, 24/7 in-person and video monitoring and user records to protect your critical data? Do they have full redundancy and disaster recovery systems in place in case of a natural disaster or other catastrophic events? Ensure that your security is secured too.


  1. Daily Relationship: Last but certainly not least, how will your provider keep the communication channels open? Do they have a portal for daily security updates, service level reports and troubleshooting requests? How about communication hubs for feedback and best practices? Clear and easy communication is key to running a successful security operation.


Is IST a good fit for you?

We’d like to think so. We work hard to help you check the above boxes. Our services are scalable and our data center is third-party verified and deploys the highest security levels. Our employees are screened for security continuously and maintain the most up-to-date certifications, including top-level vendor certifications. We’d be happy to help you address your security concerns and objectives. Contact us here to see how.

Why Hosted or Managed Security Solutions Make Good Business Sense Reason #4

Reason #4:  Eliminate Manpower Expenses


Here’s a good gut check for the state of your security:  Do you sometimes struggle to build a staff that can effectively and efficiently handle your security? A full time dedicated person or a full-blown team is an expensive proposition. Adding the responsibility for security with other numerous IT responsibilities can lead to maintenance inefficiencies—or worse—high-level security breaches. Both can seriously inhibit your company’s growth and cut deeply into your bottom line. If you’re running into these issues, a managed security solution might be the answer.


With a managed security solution, an outsourced IT team handles every aspect of your security—From the installation to the monitoring, to the upgrading, to proactively troubleshooting and strengthening the system. This means that IST is on security duty 24/7 so that you don’t have to be. In the long run, the savings can be significant.


Get More for Your Money

A 2016 study by the nonprofit Computing Technology Industry Association (CompTIA) talked to over 400 businesses across different industries, all using a managed service. Here’s what the CompTIA study found:

  • 46% of these businesses have cut their IT budget by 25% or more by engaging a managed services solution
  • 13% of the former actual cut IT spending by more than 50%
  • 50% have cut annual IT spending by 1%-24%



Your designated employees’ time spent researching and implementing the latest technology is money that can be better spent elsewhere. It makes excellent business sense to shift this responsibility to a managed service provider that’s up to speed on the latest practices and has expertise in IT security.


However, a hosted solution does not offer this service and will require help from your IT team, and/or the resources responsible for managing your security systems. While it’s also a great solution, it will not save you manpower money. It’s important to make this distinction based on your company’s needs.


This post concludes our coverage of the four reasons why a hosted or a managed security system makes good business sense. With them, you can eliminate:

  1. Software inefficiencies (with both hosted and managed)
  2. Infrastructure costs (with both hosted and managed)
  3. The knowledge gap (with managed)
  4. Manpower expenditures (with managed)

To learn more about how these solutions save you money and headaches, get our free e-book here.

Why Hosted or Managed Security Solutions Make Good Business Sense Reason #3

Reason #3:  Eliminate the Knowledge Gap


Do you enjoy getting your team up to speed on security issues? Many companies take a toll logistically and financially by retraining their employees on updated software and security procedures. How else does keeping your employees educated drag down your bottom line? Those not trained in the best practices for security may inadvertently compromise the system. This adds the cost of remediating the damage caused by a breach—which can be devastating.

Employee or “insider” mistakes can seem harmless at first, but they are deceptively dangerous. Did you know that the combined breaches caused by malicious and inadvertent insiders far outnumber any other computer security threats faced by today’s companies? Whether these employees meant to cause harm isn’t the issue; they still wreak havoc.

The Ponemon Institute’s 2016 Cost of Data Breach Study found that among a total of 874 security incidences that year, 568 were caused by an employee’s or contractor’s negligence; just 85 by outsiders using stolen credentials; and 191 by malicious employees and criminals (Source: Insiders are far more harmful to security than outsiders.


Tripwire makes the case, “Why should we lump all those incidents together? Because regardless of whether they are malicious or not, the action was taken by an employee or a person with legitimate access located inside of the company network – that is, where security is much more relaxed than on the perimeter.” Even if the breaches weren’t intentional, they still damaged the companies’ security.


Minding the Gap

There is a way to cut those negative consequences completely. Outsourcing critical security to a trusted managed services provider allows security focused employees to undergo rigorous screening and monitoring. A provider like IST handles all functions internally to eliminate this knowledge gap completely. However, there’s an important distinction: A managed services solution takes care of this issue; with a hosted solution, you need to train an internal employee(s) to manage the system.  Before going down that route, be sure that you’re comfortable with your IT team handling security first.


Our next post focuses on the fourth and final business reason for moving to a hosted or managed security solution:  eliminating the manpower expenses. The following information and other security tips are in our free e-book.

Why Hosted Or Managed Security Solutions Make Good Business Sense Reason #2

Reason #2: Eliminate Costly Infrastructure

Our last post discussed efficacies of moving to a hosted or managed security solution, that helped lower the costs and risks associated with having an in-house IT team managing your security. There are more great reasons to make the move, and one removes large infrastructure bills from your plate.


Today’s companies need to invest in servers, PCs, software and OS updates regularly to keep up with the changing technology. From semi-annually to every few years, each update adds significant costs to a bottom line. The cost of a server alone can be tens of thousands of dollars. On top of having an IT staff to maintain the equipment and other incidentals, like the utility costs. As more businesses move to a rental model to handle certain business functions, outsourcing costly infrastructure makes good business sense too.


A closer look at costs

With an on-premise server solution, you’ll incur direct costs like hardware, storage, electricity, HVAC, security and cleaning costs. These costs are required to keep them running optimally. Indirect costs include salaries of the IT professionals that manage the system, as well as any loss of revenue from downtime.


Downtime can be especially costly. With a 99.9% availability from most service providers, that equates to about 44 minutes of downtime per month. This can wreak havoc on a budget. A 2015 IHS report put it this way:  for mid-sized North American companies, downtime costs can be as high as $1 million per year in lost revenue. Mid-size companies are defined as having $100 million in average revenue and between 100-1,000 employees. Large-sized companies average in $2 billion in revenue with 13,000 employees. They can have $60 million a year in lost revenue (Source:


In an example described by, a retail e-commerce company had a total savings of 37% by moving from an on-premise server to a managed cloud-based system (Source: In addition to saving on expensive infrastructure, companies also gain the expertise of the hosting or managed services provider, which has a high cost as well.


Join us for our next post, where we’ll look how managed security solutions eliminate the dreaded knowledge gap. For the full story on making the business case to move to a hosted or managed solution, click here.