Building a Profitable Cybersecurity Practice in the SMB Space

27.05.25 10:02 PM - By Gary Herbert

Key Takeaways: What MSPs Need to Know

Why MSPs Must Lead the Charge and How to Build a Scalable, Trusted Security Offering

Cyberattacks are no longer reserved for the Fortune 500. In today’s rapidly evolving threat landscape, small and midsize businesses (SMBs) are being aggressively targeted often with devastating consequences. These organizations typically lack the advanced defenses and dedicated cybersecurity personnel of larger enterprises, making them prime targets for ransomware, phishing, data theft, and compliance violations.


As a result, Managed Service Providers (MSPs) are under growing pressure to serve as the first line of defense. But this isn’t just a challenge it’s a revenue opportunity.

The global SMB cybersecurity market is projected to grow from $76 billion in 2022 to $109 billion by 2026, a 43% increase. As SMBs scramble to keep up with evolving threats and complex compliance mandates, they're increasingly turning to MSPs for enterprise-grade cybersecurity solutions that are affordable, scalable, and effective.

At Sierra Peak Solutions, we empower MSPs to rise to the occasion not just by adding a few tools, but by building a comprehensive, profitable cybersecurity practice designed for long-term success.

1. SMBs Are Prime Targets for Cybercriminals

Contrary to common assumptions, small and midsize businesses are not “too small to hack.” In fact, they’re ideal targets for cybercriminals. Many lack formalized cybersecurity policies, operate outdated software, and don’t have dedicated security teams. Attackers exploit this by using automated phishing campaigns, ransomware-as-a-service kits, and credential stuffing attacks that require minimal effort. MSPs are in a unique position to fill these gaps with proactive monitoring, endpoint protection, and managed detection and response (MDR) turning a client’s vulnerability into an opportunity for protection and partnership.

2. The Cybersecurity Opportunity for MSPs is Exploding

With the SMB cybersecurity market projected to hit $109 billion by 2026, MSPs that embrace security services now are positioning themselves for significant growth. This surge is being driven by several factors: increased remote work, expanded cloud adoption, supply chain attacks, and evolving regulatory environments. MSPs that evolve beyond break/fix or traditional help desk services can carve out a lucrative niche in compliance, threat mitigation, and strategic security planning backed by recurring revenue and high client retention.

3. Basic Tools Are No Longer Enough

The days of relying solely on antivirus and a basic firewall are over. Today’s threat landscape requires multilayered defenses: real-time threat intelligence, email and phishing protection, secure access controls, zero trust network architectures, and AI-driven endpoint detection and response (EDR). MSPs must shift from offering piecemeal solutions to delivering integrated security stacks that cover endpoints, cloud apps, mobile devices, data governance, and user behavior analytics all tailored to the client’s industry and risk profile.

4. Vendor-Neutral Strategies Unlock Flexibility and Trust

When MSPs rely on a single vendor, they risk limiting their adaptability and damaging client trust. Sierra Peak Solutions’ vendor-neutral model gives MSPs access to a diverse portfolio of best-in-class cybersecurity technologies across multiple categories: identity and access management (IAM), network security, incident response platforms, and compliance automation tools. This approach ensures MSPs can design solutions around what clients truly need not what a vendor is pushing. It also enables better price negotiation, greater architectural flexibility, and fewer future re-platforming headaches.

5. A Strong Cybersecurity Foundation Is Critical for Scalability

A profitable and sustainable security practice starts with a clear framework. MSPs must define their service offerings around recognized cybersecurity standards like NIST, CIS Controls, or ISO 27001. This not only provides consistency in service delivery but also creates a blueprint for scaling across industries. Incorporating strategic assessments, regular penetration testing, policy development, and staff training allows MSPs to demonstrate maturity and command higher contract values. A defined foundation also makes it easier to onboard clients, upsell services, and meet auditing and compliance demands.


6. Sierra Peak Solutions Equips MSPs for Long-Term Success

With Sierra Peak Solutions as your partner, you gain more than just access to technologies. You gain a strategic extension of your team focused on helping you build a resilient, profitable cybersecurity practice. We help you evaluate client risks, scope solutions, manage procurement, and negotiate favorable terms across our trusted vendor network. Our expertise spans a wide range of industries, from healthcare and manufacturing to retail and education, enabling you to enter new verticals with confidence. Plus, our support doesn’t stop after implementation we offer ongoing advisory services, vendor management, and technical guidance to ensure your practice grows in performance and profitability.


Why SMBs Need MSPs More Than Ever

In today’s digital economy, cybersecurity is no longer optional it’s foundational to business continuity, brand trust, and regulatory compliance. Yet many small and midsize businesses (SMBs) lack the in-house expertise, tools, and bandwidth to keep up with an increasingly aggressive threat landscape. This creates a growing dependency on Managed Service Providers (MSPs) as essential partners not just IT vendors.


Enterprise-Grade Threats, Limited Defenses

Despite their size, SMBs face the same advanced persistent threats (APTs), ransomware variants, and supply chain risks as large enterprises. Threat actors no longer discriminate by size they often deliberately target SMBs, knowing they lack formal security frameworks, incident response plans, or layered defenses.

A single successful attack can have catastrophic consequences for an SMB:

  • Data breaches exposing sensitive customer or employee data
  • Operational downtime halting revenue-generating activities
  • Reputational damage that erodes client trust
  • Compliance violations leading to hefty fines (under frameworks like HIPAA, GDPR, or CCPA)

This level of risk is unsustainable for businesses without dedicated security personnel or security operations centers (SOCs). Most SMBs operate with:

  • One generalist IT staffer, or none at all
  • Outdated security tools with minimal automation or integration
  • No formal training for staff on phishing, social engineering, or insider threats

    MSPs Are the Frontline Security Team SMBs Don’t Have

    That’s where MSPs step in as vital cybersecurity allies. Far beyond just handling IT tickets or server uptime, modern MSPs are now de facto CISOs for their SMB clients. The best MSPs provide:

    • Proactive threat detection and response
    • Security orchestration and automation (SOAR)
    • Compliance advisory and documentation support
    • Network segmentation and endpoint hardening
    • Zero trust architecture deployment
    This is no longer about "managing IT" it's about managing risk and protecting business value.

    SMBs Are Looking for Solutions That Are:

    • Comprehensive: Covering all attack surfaces not just antivirus or email filters. SMBs need solutions that integrate network security, identity access controls, mobile device management (MDM), and incident response.
    • Compliant: Whether it's SOC 2 Type II, PCI-DSS, FINRA, or CMMC, SMBs increasingly face regulatory pressure especially if they serve enterprise clients, government agencies, or operate in sensitive sectors like healthcare, finance, or legal.
    • Cost-Effective: Budgets are limited, but that doesn’t mean protection should be. MSPs must offer value-optimized service bundles, balancing affordability with real security efficacy. Leveraging modular platforms and vendor-neutral architectures helps make this possible.
    • Scalable: SMBs are growing and they need cybersecurity solutions that grow with them. MSPs that offer flexible, cloud-native platforms with usage-based pricing are in a prime position to support that growth without requiring costly re-architectures later.

    Cybersecurity is Now a Business Imperative for SMBs

    With attacks rising in both volume and sophistication, and digital operations becoming the backbone of every industry, security is no longer a “nice-to-have.” It’s a boardroom issue, even for 10-person companies.

    MSPs who embrace their role as cybersecurity leaders will become indispensable partners helping SMBs not only defend their businesses, but also unlock new opportunities, win enterprise contracts, and pass regulatory audits that otherwise would be out of reach.

    Building a Security Practice with Staying Power

    As cybersecurity threats evolve in frequency, complexity, and scale, Managed Service Providers (MSPs) must evolve too. Offering basic endpoint protection or traditional IT support is no longer enough. To truly protect their SMB clients and unlock sustainable growth MSPs must transform into strategic cybersecurity partners equipped with modern tools, proven frameworks, and deep technical knowledge.


    At Sierra Peak Solutions, we empower MSPs to build durable, scalable security practices that do more than plug holes. We help you deliver proactive, value-driven services that are repeatable, defensible, and profitable over time.

    Three Pillars of a Lasting Cybersecurity Practice


    To build a practice that stands the test of time and changing threat landscapes, MSPs must root their services in these three foundational pillars:

    1. Protect Client Systems and Data Across All Environments

    • From cloud-native applications and hybrid networks to remote endpoints and unmanaged IoT devices, SMBs operate in increasingly complex environments. A staying-power security practice needs to deliver end-to-end protection across:
    • Endpoints – Deploy modern Endpoint Detection & Response (EDR) solutions integrated with behavioral analytics and AI.
    • Cloud infrastructure – Monitor SaaS platforms (e.g., Microsoft 365, Google Workspace), enforce Data Loss Prevention (DLP) policies, and use CASBs.
    • Networks – Implement segmentation, enforce firewall policies, and run IDS/IPS systems with threat intelligence feeds.
    • Mobile Devices – Secure smartphones, tablets, and BYOD hardware through centralized MDM and Zero Trust enforcement.

    The goal is continuous visibility, real-time threat detection, and policy-based enforcement that scales.

    2. Ensure Regulatory and Industry Compliance

    Compliance isn’t just about passing audits it’s about reducing liability, building customer trust, and ensuring business continuity. With an ever-changing landscape of data privacy laws and industry standards, MSPs must help clients navigate:

    • Global and local data protection laws (e.g., GDPR, CCPA, PIPEDA)
    • Industry-specific regulations like HIPAA (healthcare), PCI-DSS (retail/eCommerce), or FINRA/GLBA (financial services)
    • Framework-based security postures, such as:
    • NIST Cybersecurity Framework (CSF)
    • CIS Critical Security Controls
    • ISO/IEC 27001
    • CMMC for federal contractors

    Sierra Peak Solutions works with you to implement compliance mapping tools, automate evidence collection, and conduct regular risk assessments and policy audits helping you prove compliance while identifying security gaps.

    3. Deliver Strategic Value Beyond Technical Services

    The MSPs that thrive long-term aren’t just tech vendors they’re risk management advisors. Building a staying-power practice means elevating your role to provide executive-level insights and business-aligned strategy, such as:

    • Developing cyber resilience roadmaps
    • Advising on cyber insurance readiness
    • Facilitating incident response playbook development
    • Leading cybersecurity awareness training programs
    • Hosting quarterly security reviews and forecasting sessions

    Your clients don’t just want products they want peace of mind. When you deliver that through a consultative, outcomes-based approach, you shift from cost center to growth partner.


    Laying the Foundation: Tactical Moves for MSP Success

    To operationalize these pillars, your security practice needs a clear roadmap and support ecosystem. That includes:

    • Adopting a Security Framework
    • Use NIST CSF, CIS Controls, or ISO 27001 to standardize service delivery, benchmark progress, and communicate clearly with clients.
    • Understanding Your Ideal Client Profile (ICP)
    • Identify industries and client types where compliance and cybersecurity are business-critical like legal, construction, education, or non-profits. Tailor service bundles and language accordingly.
    • Performing Risk Assessments & Gap Analyses
    • Run comprehensive audits across network architecture, access controls, patch management, SaaS security posture, and user behavior. Use this data to build remediation plans and roadmaps.
    • Creating Modular Service Bundles
    • Offer tiered security packages aligned with business size, risk tolerance, and budget. Examples include:
    • Essentials: EDR, email security, patch management
    • Compliance+: SIEM, DLP, MFA, encryption, monitoring
    • Advanced: MDR, 24/7 SOC-as-a-Service, threat hunting
    • Investing in Talent and Training
    • Upskill your team with certifications from CompTIA (Security+, CySA+), (ISC)² (CISSP, SSCP), CISA, or GIAC. Provide playbooks, tabletop exercises, and real-world lab environments.
    • Aligning With a Vendor-Neutral Partner: Sierra Peak Solutions offers platform-agnostic guidance to help you integrate best-of-breed technologies from a broad ecosystem not locked into one stack or vendor.

    At Sierra Peak Solutions, we believe the MSPs who recognize and embrace this shift  those who build out cybersecurity as a core business pillar, not a side service  will lead the next generation of trusted technology partners.


    Why This Is a Defining Moment for MSPs

    We're living through a seismic transformation in the business landscape:

    Ransomware attacks are now a daily reality for SMBs.

    Regulations like CMMC, HIPAA, and GDPR are tightening across all industries  not just healthcare or finance.

    Insurance carriers are demanding stronger cyber hygiene as a condition for underwriting.

    Clients are asking deeper questions: “How are we protected?” “Are we compliant?” “What’s our incident response plan?”

    If you're not answering those questions  someone else will.

    That’s why MSPs must evolve from general IT providers into strategic cybersecurity advisors. Not tomorrow. Now.


    Security-First MSPs Win More Than Just Deals

    Becoming security-centric doesn’t just protect your clients  it future-proofs your business model. Here’s what sets successful, security-first MSPs apart:

    Higher Margins: Cybersecurity services command premium pricing due to their complexity and critical value.

    Longer Retention: Clients that trust you with their risk management and regulatory compliance are less likely to switch vendors.

    Deeper Engagements: Security opens the door to higher-value conversations, like digital transformation, resilience planning, and governance consulting.

    Resilience and Differentiation: In a saturated MSP market, your ability to deliver managed security outcomes is a unique and defensible competitive edge.


    How Sierra Peak Solutions Helps You Get There

    We’re more than a technology broker  we’re your strategic enablement partner.

    Sierra Peak Solutions gives you access to:

    A vendor-neutral platform that puts your clients' needs  not manufacturer quotas  first.

    Turnkey cybersecurity offerings built for the SMB space: from MDR to SIEM, compliance-as-a-service to SOC outsourcing.

    Expert consulting and sales enablement to help you design bundles, pitch services, and grow MRR faster.

    Ongoing guidance to align your practice with evolving frameworks, technologies, and client demands.

    You don’t need to be a cybersecurity expert on day one. You just need a roadmap  and the right partner.


    Your Next Step: Lead with Security, Grow with Confidence

    The future of the MSP business is built on trust, protection, and resilience. Those who can deliver it  in every vertical and across every region  will thrive in the years ahead.

    This is your opportunity to:

    • Strengthen your client relationships by protecting what matters most.
    • Transition from ticket-taker to trusted security partner.
    • Build a scalable, profitable security practice that grows alongside rising market demand.

    The opportunity is here. The tools are ready. The market is waiting. At Sierra Peak Solutions, we’re here to help you lead.

    Final Thoughts: The Future Belongs to Security-Focused MSPs

    The role of the Managed Service Provider is changing  permanently.

    For decades, MSPs have been viewed as the backbone of IT support: solving tickets, managing systems, keeping businesses online. But in a world increasingly shaped by digital risk, compliance complexity, and sophisticated cyber threats, those traditional expectations no longer capture the full scope of what SMBs need  or what MSPs can provide.

    Cybersecurity is no longer optional. It’s the foundation of operational continuity, brand integrity, and long-term business viability.

    At Sierra Peak Solutions, we believe the MSPs who recognize and embrace this shift  those who build out cybersecurity as a core business pillar, not a side service  will lead the next generation of trusted technology partners.

    Gary Herbert