- Demand for virtual Chief Information Security Officer (vCISO) services from small and mid-sized businesses (SMBs) is rising rapidly.
- vCISO adoption among managed service providers (MSPs) and managed security service providers (MSSPs) increased by 319% from 2024 to 2025.
- Providers offering vCISO services report improvements in upselling, operating margins, and customer growth.
- Main barriers to entry for new providers are operational, such as investment and staffing, rather than lack of demand.
- Artificial Intelligence (AI) adoption is helping providers scale vCISO services efficiently, cutting manual tasks and boosting profitability.
Businesses of all sizes face growing cyber risks, and rising threats are pushing small and mid-sized companies to seek flexible security options. In response, many organizations are turning to virtual Chief Information Security Officer (vCISO) services to address these increasing Cybersecurity and compliance needs.
A report from Cynomi reveals that 79% of managed service providers (MSPs) and managed security service providers (MSSPs) note high demand for vCISO offerings among SMBs. The market saw a sharp jump in adoption, with provider participation increasing from 21% in 2024 to 67% in 2025. Around 50% of providers plan to add vCISO services by the end of the year.
The report shows positive business outcomes for providers offering vCISO solutions. “41% of organizations reported an increase in upsell opportunities, 40% saw better operating margins, and 39% expanded their customer base,” the report states. vCISO services are becoming a standard part of service offerings, outpacing even compliance and cyber insurance support.
However, the report notes that operational hurdles remain. “35% of providers were concerned about profitability or return on investment (ROI), 33% highlighted high upfront investments, and 32% cited a shortage of qualified cybersecurity professionals,” according to the data. Most do not doubt the demand or the potential business gains of vCISO services.
Technology is shifting the landscape. The report says 81% of MSPs and MSSPs are already using AI or automation in vCISO workflows, with another 15% planning adoption within a year. These tools help automate reporting, compliance, security assessments, and other labor-intensive tasks. Some providers have reduced manual workloads by up to 68% on average, with nearly half seeing workload reductions as high as 100% in specific areas.
Ongoing investment in automation is expected to further streamline vCISO delivery. Cynomi‘s full 2025 State of the vCISO Report provides additional details, trends, and practices on the evolving role of cybersecurity leadership for SMBs.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- SBI Holdings Files XRP, Bitcoin ETF Applications in Japan
- Matera, Circle Partner to Help Banks Offer Stablecoins Easily
- Michigan Pension Fund Triples Bitcoin ETF Holding Despite Outflows
- AMD Stock Dips Despite 32% Q2 Revenue Rise, AI Growth Ignored
- Ether Volatility Hits 2025 Low as Price Surges Over 60% in July
