As the quantity and class of cyber threats and dangers develop, cybersecurity has grow to be mission-critical for companies of all sizes. To handle this shift, SMBs have been urgently turning to vCISO providers to maintain up with escalating threats and compliance calls for. A latest report by Cynomi has discovered {that a} full 79% of MSPs and MSSPs see excessive demand for vCISO providers amongst SMBs.
How are service suppliers scaling to satisfy this demand? Which enterprise upside can they count on to see? And the place does AI slot in?
The solutions could be present in “The 2025 State of the vCISO Report”. This newly-released report affords a deep dive into the vCISO market evolution and the broader shift towards superior cybersecurity providers. The underside line? What was a distinct segment providing is now a foundational service, and AI is remodeling the way it’s delivered. Under, we convey a number of the major findings of the report.
319% Development in vCISO Adoption: MSPs & MSSPs Race to Meet SMB Demand
vCISO choices present a versatile, cost-effective approach for organizations to entry high-level cybersecurity experience with out the overhead of a full-time government. And with a rising variety of assaults alongside the rising consciousness of the significance of cybersecurity, it is no shock that demand for vCISO providers is skyrocketing amongst SMBs. Demand for vCISO providers is outpacing even compliance readiness and cyber insurance coverage help.
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| Determine 1: Demand for Superior Cybersecurity Providers Amongst SMB Purchasers |
In response, adoption of the vCISO providing amongst MSPs and MSSPs has jumped from 21% in 2024 to 67% in 2025. It is a 319% improve in only one yr. As well as, 50% of the service suppliers who do not but, plan to launch vCISO choices by yr’s finish. This adoption curve displays a transparent business shift, from vCISO being a distinct segment service to changing into a core one.
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| Determine 2: Plans for Providing vCISO Providers |
Actual Enterprise Affect: Greater Margins, Higher Upsell, Extra Recurring Income
The expansion in adoption is not simply pushed by shopper demand. It is also underpinned by sturdy enterprise outcomes for suppliers. Organizations that supply vCISO providers report substantial positive aspects:
- 41% report a rise in upsell alternatives, leveraging vCISO for extra service choices
- 40% see improved working margins
- 39% report a measurable growth of their buyer base, together with entry to new prospects
And naturally, vCISO providers supply important safety advantages to shoppers. From the service supplier angle, main safety experience elevates them past mere momentary distributors to trusted, long-term strategic companions.
Adoption Boundaries Are Actual, However They’re Operational, Not Strategic
Whereas enthusiasm amongst service suppliers is excessive, not each supplier has but made the leap into vCISO providers. Amongst these nonetheless in planning mode, the report identifies three main issues:
- 35% cite uncertainty round profitability or ROI.
- 33% spotlight excessive upfront funding necessities.
- 32% level to a scarcity of certified cybersecurity professionals.
Importantly, few suppliers doubt the market demand or enterprise worth of vCISO providers. As a substitute, they’re struggling to implement them effectively and profitably.
That is the place expertise and automation come into play. As AI-powered platforms scale back handbook effort and allow scalable service supply, the operational burden turns into way more manageable, opening the door for broader market participation.
AI Is Reshaping the vCISO Supply Mannequin
AI is now not a future consideration. It is already having a profound influence on how vCISO providers are delivered. In keeping with the report, 81% of MSPs and MSSPs are already utilizing AI or automation inside their vCISO workflows, and an extra 15% plan to undertake it inside the subsequent yr.
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| Determine 3: Use of Automation and AI Instruments in vCISO Service Supply |
The functions of AI in vCISO providers are wide-ranging and impactful: reporting automation and insights, remediation planning, compliance readiness and monitoring, danger and safety assessments, activity prioritization, and extra.
The result’s a major discount in handbook workload: a median lower of 68%, with 42% of suppliers seeing 81–100% workload reductions in some areas.
This permits service suppliers to help extra shoppers, ship higher-quality outputs, and enhance revenue margins, all with out increasing headcount. In impact, AI is enabling the type of scale and consistency that conventional, human-led supply fashions couldn’t maintain.
The Highway Forward: AI-Pushed Scale, Technique and Service Differentiation
The 2025 State of the vCISO Report paints a transparent image: As service suppliers proceed to spend money on automation and clever tooling, the vCISO mannequin will shift from resource-heavy to AI-powered and extremely environment friendly.
Wanting ahead, we count on to see:
- Wider market penetration amongst MSPs and MSSPs
- Deeper integration of AI throughout vCISO providers
- Greater ROI, as service suppliers implement AI and different applied sciences of their processes and choices.
For a whole view of developments, benchmarks, and greatest practices shaping the way forward for digital cybersecurity management, obtain the total 2025 State of the vCISO Report.
