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Mid-Sized Businesses Can Cut Network Security Costs In Half

May 8th, 2006

Small and medium-sized businesses (SMBs) can dramatically save on internal network security when engaging an on-demand service versus choosing to purchase and manage security systems themselves, according to a study released today by Stratecast Partners, a division of Frost & Sullivan.

Bridging the Gap between Effective Internal Network Security and Cost, available for download at www.alertlogic.com, reveals that smaller businesses will save more than $79,000 in cumulative costs over three years by implementing an on-demand service instead of patching together a system of disparate software and hardware solutions. Over three years, a small business would need to spend more than $139,000 to install effective internal network security versus expenditures of approximately $60,000 for an on-demand solution.

Mid-sized businesses will spend even more attempting to “piece-meal” together an effective internal network security solution, with costs totaling more than $290,000 over three years, as opposed to an on-demand service that would only cost around $86,000. Larger enterprises see even greater savings when deploying an on-demand security solution, spending almost $375,000 doing it themselves versus spending $131,000 over three years for an on-demand service.

“There is no doubt that the nature of network security has permanently changed, and perimeter defenses are no longer sufficient as threats are just, if not more, likely to originate from within the enterprise network,” said Michael Suby, research program manager at Stratecast Partners. “Companies, especially small and mid-sized firms, are scrambling to protect themselves with the volume of threats growing every day that can bring their operations to a halt. We found that when conducting a very basic side-by-side evaluation, businesses can see that the cost savings of using an on-demand service are significant.”

The study identifies Alert Logic and its subscription-based security service as a leading alternative to more costly security solutions. Alert Logic delivers improved internal network security at a fraction of the cost of a do-it-yourself approach.

“This study proves what Alert Logic has claimed and what many SMB owners are coming to realize – that these businesses are paying exorbitant rates for diluted and complex technology designed for large enterprises,” said Steve Kahan, CEO at Alert Logic.

The only on-demand IT security company focused on the SMB market, Alert Logic recently declared war on the high cost of security for SMBs, claiming that large IT security vendors have been forcing these businesses to overspend for security solutions – solutions that are often not appropriate for SMBs.

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