• Anthony Jett

What's My Return On Investment (ROI)?

Every business, large or small, is concerned with the bottom line. Calculating the ROI for each transaction ensures sound, data-driven decisions are made. However, like most professional services, calculating the ROI for Cybersecurity can be difficult. The entire premise is built on the potential that your network may be compromised, providing nothing that can be amortized or depreciated on a normal schedule. Fortunately, there is a ton of information available to help add hard numbers to the calculation, so let's get started.

First, unlike most Cybersecurity firms, MeriTec Services offers transparent pricing. Understanding the cost to secure your network is vital to calculating your ROI. We disagree with the notion that you need to spend 30 minutes on the phone with a sales rep, just to forfeit your contact information so you can receive spam email you don't want. Oh, and to find out the cost is too expensive. We've gone to great lengths to prepare and offer the most cost-effective solutions for your business.

Next, do some research on the average cost of a network breach or cyber-attack. Depending on the size of your business, the average costs can range from tens of thousands to over $1 million dollars. The Ponemon Institute and Verizon publish annual reports on the topic, I highly recommend reviewing both, or searching "cost of a cyber attack" and review the many articles. Notice that most articles on the topic only look at the hard, calculable costs. These figures do not consider the cost of lost time or reputational impacts, which can create monetary losses long after the actual attack.

Finally, research the likelihood that your business may become a target. Did you know that over the past decade the percentage of overall attacks against small businesses have seen the highest growth? That's right, small businesses are estimated to account for anywhere between 40-60% of all cyber-attacks. The reason is obvious, small businesses have fewer resources to budget for Cybersecurity. Cyber criminals realize this, and they target small businesses because they are easy targets. Think about it, a criminal can spend months trying to compromise a single large business or they can spend a few days and compromise several small businesses. Please do not be fooled by the idea that your data isn't worth stealing, either. In terms of actual value of the data on the dark web you may be right, your accounting information may not be that valuable. That's why cyber criminals employ ransomware, which effectively holds your business hostage until you pay their ransom.

Back to the ROI. You can calculate ROI using the following formula: ROI = (Current Value of Investment - Cost of Investment) / Cost of Investment. For example, our Essential Security plan starts at $500 per month. Assuming your rate is $500, that equals $6,000 per year, which we will use as the Cost of Investment variable. Next, the Current Value of the Investment will equal the average cost of a cyber-attack. Let's assume a cyber-attack costs the average small business $40,000. (Note: This is a very conservative number that doesn't consider several inputs. I'm leaving it low to offset for the likelihood that your business is attacked.) Let's do the math!

ROI = ($40,000 - $6,000) / $6,000. ROI = 567%

That's right folks, a 567% ROI. Using the same $40,000 Current Value of Investment, the ROIs' for our Advanced and Ultimate Security plans can be calculated at 233% and 67%, respectively.

This is fairly rudimentary math that doesn't consider factors such as, the size of your business, industry, value of your data, volume of sensitive data, or regulatory fines, all of which would change the equation. However, this does highlight that Cybersecurity is focused on your businesses bottom line. You can no longer view Cybersecurity as a luxury, it has unfortunately become a necessity. But, before you decide to enlist MeriTec Services or any company to perform your Cybersecurity, let MeriTec conduct a FREE vulnerability scan of your network. Honestly, it’s free. One of our highly-trained technicians will scan your network for vulnerabilities and provide you a free report highlighting any discoveries and recommended solutions. Of course, if you have any questions we will be there to help, and we really hope to earn your business as well.

Suggested links:

Ponemon Institute:

Verizon 2018 Data Breach Report:

Security Magazine:

CSO Online:

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