Managed Security Services Provider (MSSP) Market News: 2 February 2023

Each business day, MSSP Alert delivers this quick lineup of news, analysis and chatter from across the managed security services provider ecosystem.

A. Today’s MSSP, MDR, XDR and Cybersecurity Market News

1. Data Breaches Cost Business: Over the last three years, U.S. businesses that specialize in manufacturing and utilities have suffered 562 data breaches affecting nearly 91 million records. Based on the average cost per breached record (as reported by IBM each year), it's estimated these breaches may have cost these businesses more than $14.7 billion. In 2022 alone, 136 data breaches are estimated to have cost more than $6 billion. (Source: Comparitech)

2. Cybersecurity Research: SecurityScorecard, a cybersecurity ratings service, and The Cyentia Institute, an independent cybersecurity research firm, have published research that found 98% of organizations have vendor relationships with at least one third-party that has experienced a breach in the last two years. The study, Close Encounters of the Third (and Fourth) Party Kind, also found that 50% of organizations have indirect relationships with at least 200 breached fourth-party vendors in the last two years.

3. Leadership Move: Tanium, an IT operations and security management company and supplier of converged endpoint management (XEM), has named Dan Streetman as CEO. Orion Hindawi, co-founder and current CEO of Tanium, will assume the role of executive chairman.

4. Gem Receives Funding Boost: Gem Security has emerged from stealth, launching its Cloud TDIR (Threat Detection, Investigation and Response) platform and announcing $11 million in seed funding led by Team8.

5. Partner Program Debuts: Contrast Security, a code security platform specialist, has launched its new partner program, the Security Innovation Alliance (SIA). The alliance is a global ecosystem of system integrators, cloud, channel and technology alliances.

6. Rapid7 for Sale?: Rapid7, the cybersecurity firm that hired Twitter Inc whistleblower Peiter Zatko last month, is reportedly exploring options that include a possible sale after attracting acquisition interest. The Boston-based company is working with investment bank Goldman Sachs Group Inc. as it considers approaches from parties that include private equity firms. (Source: Reuters)

7. SIEM Research: Exabeam has released its State of the SIEM survey of 500 U.S. IT security professionals, revealing that 97% feel confident that they are well-equipped with the tools and processes they need to prevent and identify intrusions and/or breaches. However, according to recent security industry reports, 83% of organizations experienced more than one data breach in 2022.

8. Schools Hit By Ransomware Attacks: School districts in Tucson, Arizona, and Nantucket, Massachusetts are responding to ransomware attacks on their networks this week. Schools in Nantucket were closed February 2 as the district worked to understand the scope of a ransomware attack that hit their computers. The Tucson Unified School District — the largest school district in southern Arizona — said it has been responding to a "data security incident" but that schools are still "fully functioning." Local news reports indicate the incident is a ransomware attack. (Source: Axios)

B. Annual In-Person MSSP and Cybersecurity Conferences