We know that the technology service provider community at MSSP Alert includes security-minded MSPs, and with that in mind, each week we bring you a roundup of other news of interest to MSPs from our affiliate site ChannelE2E. Watch this space for updates on mergers and acquisitions, AI for MSPs and other channel partners, channel partner programs, MSP tools, and more.
This week we have quite a lot of business news for you. We take a look at Pinpoint Search Group’s quarterly roundup of cybersecurity capital investments.
We’ve also got some perspectives about what MSPs are saying their top challenges currently are. Spoilers: cybersecurity is number two on a list of three top headaches. Which brings us to CompTIA’s analysis of the recent employment numbers from the U.S. government, and it’s a mixed bag. Plus, in case you are wondering what those Bellini Capital investment companies are up to, we’ve got the most recent news from one of them – Compliance Scorecard.
Check out our full roundup here.
Cybersecurity Investments Rebound in Q2 2024
The cybersecurity capital market remains volatile, but there are encouraging signs in the latest Q2 2024 cybersecurity funding report from Pinpoint Search Group. The report revealed a slight increase in the number of transactions compared to Q2 2023 but a significant increase in the total amount of funding raised. The rise in funding year-over-year is a positive indicator for an industry that has undergone considerable changes over the past year, said Mark Sasson, co-founder and managing partner at Pinpoint Search Group.
“Last year was a challenging year economically, likely contributing to the dip in cybersecurity funding we experienced throughout 2023," Sasson said. "Additionally, there has been growing evidence of an industry reset, with investors spreading their funding dollars among new technologies designed to address the IT threat landscape of tomorrow, including AI, crypto and automation."
In Q2 2024, Pinpoint Search Group’s research team recorded 120 transactions in the cybersecurity vendor space, totaling $3.3 billion across 98 funding rounds and 22 M&A events. This represents approximately a 1% increase in transaction volume (up from 97 in Q2 2023) and a 71% increase in fundraising from the previous year's $1.9 billion. However, Pinpoint noted that the year-over-year increase over Q2 2023 is skewed due to the $1 billion raised by Wiz in May 2024; yet, even excluding that round, Q2 2024 still saw a 21% increase over the previous year.
Cybersecurity is still a maturing industry driven by start-up innovation; annual investment in security has swung wildly over time, Sasson told ChannelE2E. While there is no question that investment rebounded compared to last year's period, funding for Q2 2024 remains below Q2 funding for 2022 ($4.3 billion) and 2021 ($4.9 billion), he said.
Canalys: Talent, Cybersecurity and Competition are MSPs’ Big Challenges
It's not easy running a business, but when that business is a managed service provider (MSP) or a managed security service provider (MSSP), it can seem even trickier. A recent survey from research firm Canalys aimed to identify the biggest challenges MSPs and MSSPs faced in running their business.
The survey polled 135 respondents from May 2024 to June 2024, and asked participants which external challenges posed the greatest threat to their MSP's business operations. The top three answers were talent acquisition and retention, evolving cybersecurity threats and competition in the MSP market.
Recent analysis from CompTIA showed that while the technology industry experienced job growth in June 2024, it was offset by slowdowns in other key employment metrics. The CompTIA July 2024 Tech Jobs report showed that the tech industry added an estimated 7,540 net new workers in June, the biggest monthly increase in 2024, based on analysis of U.S. Bureau of Labor Statistics (BLS) data.
That positive result, however, was countered by the loss of 22,000 tech occupations throughout the economy as a whole, according to the report. The tech unemployment rate experienced an unexpected jump to 3.7%, moving directionally with the national unemployment rate increase for the month.
Bellini Capital Company, Compliance Scorecard, Launches Strategic Alliance Program
Compliance Scorecard, the Governance-as-a-Service platform created by MSPs for MSPs, has released a new Strategic Alliance Program aimed at enhancing the cybersecurity offerings of each partner and collectively improving their ability to deliver compliance services to managed service providers (MSPs) and their clients.
Vendors in the alliance ecosystem include some big names in the channel like Liongard, FifthWall Cyber Insurance, Auvik and easyDMARC, among others. The program officially launched June 25, 2024.
The Compliance Scorecard program includes a broad spectrum of integrated tools and services to meet ever-changing compliance standards across multiple sectors, including cloud, communication, QBR/vCISO, security, security awareness training and vulnerability management. Alliance partners gain access to diverse services and revenue streams that enable business growth, product enhancement and sustained competitiveness in the market, Tim Golden, Compliance Scorecard's CEO, explained to ChannelE2E.
“Our program is built on curating top-tier solutions from diverse partners, magnifying their effectiveness and facilitating seamless interoperability. And yes, there are tools out there for compliance -- One Trust, Apptega, Drata, Vanta -- but not many, and they aren't specifically MSP tools. Often, those that tend to be out of the price range of many MSPs,” Golden told ChannelE2E.
CompTIA: Tech Industry Sending Mixed Jobs Signals
While analysis from CompTIA showed technology industry job growth in June, it was offset by slowdowns in other key employment metrics. The CompTIA July 2024 Tech Jobs report showed that the tech industry added an estimated 7,540 net new workers in June, the biggest monthly increase in 2024, based on analysis of U.S. Bureau of Labor Statistics (BLS) data.
That positive result, however, was countered by the loss of 22,000 tech occupations throughout the economy as a whole, according to the report. The tech unemployment rate experienced an unexpected jump to 3.7%, moving directionally with the national unemployment rate increase for the month.
The total base of U.S. tech industry employment stands at approximately 5.6 million workers, and technology services and software development occupations continue to lead new hiring, which is a positive sign for the small and medium-size segment of the sector, CompTIA said. Innovations in AI may be cutting both ways, however, as organizations may see it as either a reason to delay hiring or a reason to increase hiring of talent with AI skills.
“Despite pockets of growth, the recent data indicates a degree of downward pressure on tech employment,“ said Tim Herbert, chief research officer, CompTIA, in a statement about the report. “A combination of factors, including AI FOMO, likely contributes to segments of employers taking a wait-and-see approach with tech hiring.”
