The Cost of a Data Breach vs. The Cost of Managed IT Services

The Cost of a Data Breach vs. The Cost of Managed IT Services

The Department of Homeland Security defines a data breach as “the unauthorized movement or disclosure of sensitive information to a party, usually outside the organization, that is not authorized to have or see the information.” We’ve seen data breaches happen time and time again, especially over the last few years. The biggest cause? Cybercrime. As hackers become more sophisticated, they’re launching more complex and coordinated attacks against healthcare institutions, businesses, and government agencies alike. Virtually all industries are at risk and the consequences can be dire – resulting in hefty fines, recovery expenses, and of course, a damaged reputation with loss of client and/or citizen trust.

Data Breaches Affect MILLIONS of People Every Single Year Around the World, But What is the Cost for the Organizations That Experience Them?

In the simplest terms, data breaches can be incredibly costly for the organizations that experience them. The Ponemon Institute’s Annual “Cost of a Data Breach’ report last year found that the average cost of a data breach is $4.88 million – up from $3.9 million the year prior. On average, a malicious breach resulting from a cyberattack costs $1 million MORE than those originating from accidental causes, such as human error or system glitches. However, data breaches from accidental causes are almost as common – presenting an opportunity for improvement in the form of:

1. Ongoing cybersecurity awareness training

2. Investments in proper tools, technologies, and processes

3. Testing via simulated attacks

Where does the high cost of a data breach come from? There are many factors that add up quickly:

• Equipment recovery and/or troubleshooting
• Regulatory compliance fines and/or lawsuits
• Missed deadlines and/or lost clients
• Missed business opportunities
• Downtime resulting in wasted payroll dollars

How Much Do Managed IT Services Cost and Would It Be Wise to Invest in Them to Prevent a Data Breach?

First and foremost, let’s take a look at what managed IT services are and how they work. Essentially, an MSP takes responsibility for the ongoing monitoring, management, and maintenance of your information systems. You pay a flat-rate monthly fee for a range of services and support, including around-the-clock monitoring, data backups, cybersecurity, and help desk services. You’re able to focus on your core competencies while the MSP handles all of your technology challenges and/or requirements.

So how much does this cost? There are various factors that will impact the price, including the complexity of your environment, any regulations you’re subject to, and what services you’re looking for. As a general rule, you can estimate anywhere between $75 per user, per month to $300 per user, per month. They will likely offer various plans that start on the lower end – encompassing the basics like monitoring, maintenance, and support to the higher end – encompassing more complex requirements.

Would You Spend More on a Data Breach Than What You’d Spend on Managed IT Services?

Absolutely, especially for small businesses wherein the cost of a data breach tends to hit them harder in proportion to their size. When you choose to invest in managed IT services, you’re taking preventative action to prevent the high cost associated with a data breach, whether it’s caused by malicious activity or human error.

Contact Essential Solutions: Your Louisiana IT Security Experts. Call 225.336.0273

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