Cyber security is notoriously high-growth and acyclical so it rightly attracts significant attention from investors. However, the space is increasingly complex and rapidly changing. Based on our recent work, two categories in particular stand out for the potential to generate significant returns: Specialist Service Partners and Managed Service Providers (MSPs)/Value Added Resellers (VARs).
Specialist Service Partners
As the sophistication of threats and size of attack surfaces have increased, cyber security tooling has proliferated, specialised, and fragmented. In-house teams are increasingly relying on specialist support across the design and build phases of core cybersecurity solutions, and to a lesser extent, for ongoing support. Specialist service providers are very well positioned given:
MSPs & VARs
These businesses target the highest growth segments – mid-market and large corporates – where adoption growth is rapid, and clients need the most support. Critically, due to their limited in-house capabilities, these customers tend to have greater dependence on their partners and willingness to adopt a recurring managed service model. MSPs & VARs are increasingly well-positioned to win here given:
It is important to note that for both these groups, M&A is a very attractive means to accelerate growth. Service provision remains relatively fragmented, and M&A can drive new geographic and/or service line offerings with significant revenue and cost synergies.
If you are looking at any of these areas, or refreshing your views on the wider Cyber ecosystem, get in contact with our experts.
Partner
Partner
Partner
Partner
Partner
Cyber security is notoriously high-growth and acyclical so it rightly attracts significant attention from investors. However, the space is increasingly complex and rapidly changing. Based on our recent work, two categories in particular stand out for the potential to generate significant returns: Specialist Service Partners and Managed Service Providers (MSPs)/Value Added Resellers (VARs).
Specialist Service Partners
As the sophistication of threats and size of attack surfaces have increased, cyber security tooling has proliferated, specialised, and fragmented. In-house teams are increasingly relying on specialist support across the design and build phases of core cybersecurity solutions, and to a lesser extent, for ongoing support. Specialist service providers are very well positioned given:
MSPs & VARs
These businesses target the highest growth segments – mid-market and large corporates – where adoption growth is rapid, and clients need the most support. Critically, due to their limited in-house capabilities, these customers tend to have greater dependence on their partners and willingness to adopt a recurring managed service model. MSPs & VARs are increasingly well-positioned to win here given:
It is important to note that for both these groups, M&A is a very attractive means to accelerate growth. Service provision remains relatively fragmented, and M&A can drive new geographic and/or service line offerings with significant revenue and cost synergies.
If you are looking at any of these areas, or refreshing your views on the wider Cyber ecosystem, get in contact with our experts.
Partner
Partner
Partner
Partner
Partner
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