We know that MSSP Alert’s technology service provider community includes MSPs who care about security, so each week we round up other news of interest to MSPs from our companion site, ChannelE2E. Check this page for the latest on mergers and acquisitions, AI for MSPs and other channel partners, channel partner programs, MSP tools, and more.
There’s a lot of business news this week, so let’s take a look at Pinpoint Search Group’s quarterly roundup of cybersecurity capital investments.
We also got some insight into the biggest challenges facing MSPs today. Spoiler alert: cybersecurity is number two of the top three headaches. We then move on to CompTIA’s analysis of the US government’s recent employment numbers, which came out with mixed results. And, in case you’re wondering what Bellini Capital investment firms are up to, we got the latest news from one of them, Compliance Scorecard.
See the full summary here.
Cybersecurity investments to recover in Q2 2024
While cybersecurity capital markets remain volatile, there is a silver lining in Pinpoint Search Group’s latest Q2 2024 Cybersecurity Funding Report. The report found that while there was a slight increase in deal count compared to Q2 2023, there was a significant increase in the total amount of funds raised. Mark Sasson, co-founder and managing partner at Pinpoint Search Group, said the year-over-year increase in funding is a positive indicator for an industry that has undergone significant change over the past year.
““Last year was economically challenging, which likely led to a dip in cybersecurity funding through 2023,” Sasson said. “Furthermore, there are growing signs of industry consolidation, with investors diversifying their capital into new technologies designed to address the future IT threat landscape, including AI, cryptocurrency and automation.”
In Q2 2024, Pinpoint Search Group’s research team recorded 120 deals in the cybersecurity vendor space, totaling $3.3 billion across 98 funding rounds and 22 M&A events. This represents a roughly 1% increase in deal volume (up from 97 in Q2 2023) and a 71% increase in funding from $1.9 billion a year ago. However, Pinpoint notes that the year-over-year increase in Q2 2023 was influenced by the $1 billion raised by Wiz in May 2024. However, even excluding that round, Q2 2024 recorded a 21% year-over-year increase.
Cybersecurity is a mature industry driven by startup innovation, and annual investment in security has fluctuated significantly over time, Sasson told ChannelE2E. While there has certainly been a recovery in investment compared to the same period last year, funding in Q2 2024 remains below funding in Q2 2022 ($4.3 billion) and Q2 2021 ($4.9 billion), Sasson said.
Read the full story here.
Canalys: Talent, cybersecurity and competition are big challenges for MSPs
Running a business is never easy, but if that business is a managed service provider (MSP) or managed security service provider (MSSP), it may seem even harder. A recent survey by research firm Canalys aimed to identify the biggest challenges MSPs and MSSPs face in running their business.
The survey, conducted among 135 respondents from May 2024 to June 2024, asked participants what external challenges pose the greatest threat to MSPs’ business operations. The top three responses were attracting and retaining talent, evolving cybersecurity threats, and competition in the MSP market.
Recent analysis from CompTIA shows that the technology industry saw job gains in June 2024, but that this was offset by a slowdown in other key employment indicators. The technology industry added an estimated 7,540 new workers in June, its largest monthly gain in 2024, according to CompTIA’s July 2024 Technology Jobs Report, based on an analysis of data from the U.S. Bureau of Labor Statistics (BLS).
But the positive results were offset by the loss of 22,000 skilled jobs across the economy, according to the report. The skilled unemployment rate unexpectedly rose to 3.7 percent, moving in the same direction as the rise in the national unemployment rate for the month.
Read the full story here.
Bellini Capital Company Launches Compliance Scorecard and Strategic Partnership Program
Compliance Scorecard, a governance-as-a-service platform built by MSPs for MSPs, has released a new strategic partnering program designed to strengthen each partner’s cybersecurity offerings and collectively improve their ability to deliver compliance services to managed service providers (MSPs) and their customers.
Vendors participating in the alliance ecosystem include some of the channel’s biggest names, such as Liongard, FifthWall Cyber ​​Insurance, Auvik and easyDMARC. The program officially launched on June 25, 2024.
The Compliance Scorecard program includes a wide range of integrated tools and services to meet ever-changing compliance standards across multiple sectors, including cloud, communications, QBR/vCISO, security, security awareness training, vulnerability management, etc. Alliance partners have access to diverse services and revenue streams that enable them to grow their business, enhance their products, and sustainably compete in the marketplace, Compliance Scorecard CEO Tim Golden explained to ChannelE2E.
“Our program is based on curating best-in-class solutions from diverse partners to enhance their effectiveness and drive seamless interoperability. Sure, there are tools out there for compliance – One Trust, Apptega, Drata, Vanta – but there aren’t many of them, they’re not specifically MSP-focused and they often tend to be out of the price range for many MSPs,” Golden told ChannelE2E.
Read the full story here.
CompTIA: Tech industry sends mixed hiring signals
CompTIA’s analysis found that tech industry employment increased in June, but was offset by a slowdown in other key employment indicators. The technology industry added an estimated 7,540 new workers in June, the largest monthly gain in 2024, according to CompTIA’s July 2024 Technology Employment Report, based on an analysis of data from the U.S. Bureau of Labor Statistics (BLS).
But the positive results were offset by the loss of 22,000 skilled jobs across the economy, according to the report. The skilled unemployment rate unexpectedly rose to 3.7 percent, moving in the same direction as the rise in the national unemployment rate for the month.
The U.S. tech industry employs about 5.6 million people in total, with technical services and software development occupations continuing to lead new hires, a positive sign for small and medium-sized businesses in the industry, CompTIA said. But AI innovations can be a double-edged sword: companies may see it as a reason to slow hiring or as a reason to hire more people with AI skills.
“Despite signs of growth, recent data suggests that tech hiring remains under some downward pressure,” CompTIA chief research officer Tim Herbert said in a statement about the report. “A confluence of factors, including FOMO about AI, is likely contributing to some employers taking a wait-and-see approach to tech hiring.”
Read the full story here.
