According to IBM’s latest report, the average price of a data breach in 2024 has increased to $4.88 million. This is not just an IT issue; it is a problem for the entire business. It has become an issue for business survivability, and every company is at risk, no matter the size. Yes, yours, too.
Ransomware attacks have increased, and cybercriminals are becoming way more sophisticated, so protecting your business in 2025 is a challenge that can become more expensive than ever.
This guide will outline what you will need to plan for cybersecurity in 2025. You’ll learn what the real costs of a variety of security models look like, from building a team and staffing to working with managed providers such as TVG Consulting. Whether you are a small business owner or an enterprise decision maker, you’ll gain actionable, practical insights to equip you to make the best choices for your company’s sustainability.
Why Cybersecurity Costs are More Important than Ever
Cybersecurity is now a business-critical investment. After all, what is more important than you business information? There are rising cyberthreats to every business regardless of size or industry, from data breaches to ransomware and other phishing schemes. Attackers are more sophisticated, and one instance of loss can cost a company lost revenue, regulatory fines, and reputational damage.
For industries such as health care and finance, there are even greater risks due to sensitive information and compliance requirements. Is it your case? Then, hurry to contact an IT provider like TVG Consulting to access to expert support.
What Constitutes a Cyber Budget
Your cyber budget includes more than just the software you purchase. You also need to consider all the technology you utilize, the personnel required, compliance, and insurance. Organizations today are spending about 21% of their security budgets on cloud and SaaS tools, while typically allocating 30-40% to personnel.
The correct mix should depend on the size of your business, your industry, and your risk profile. For example, the health and financial services tend to allocate more of their IT budget to security because of regulatory requirements.
Nevertheless, by keeping the following components in mind, you can develop a budget that will help protect your business against the chaotic threat posed by cybercriminals.
Technology Stack
Your technology stack is the foundation of your cyber defense. It should consist of:
- A firewall to prevent unwanted traffic.
- EDR/XDR for advanced threat detection.
- Multi-factor authentication (MFA) to ensure users gain secure access.
- Backup product to make sure you can recover from ransomware or data loss.
A proper stack will help minimize vulnerabilities and enable a speedier response to an attack, but costs will depend on users, devices, and complexity of the environment.
People & Services
You have to consider people as an essential element of your security posture, as they will act as your first defense line. In one hand, you’ll need a Security analyst to monitor systems, and investigate, analyze, and respond to threats, and on the other, a virtual Chief Information Security Officer (vCISO) who will provide strategic guidance, while a 24/7 SOC provides 24/7 coverage.
Security personnel and services generally include all skillsets and technical expertise to train and provide defence for all the evolving cyber threats to keep your organization secure. Usually, the payment for a person, or even managed services, can be the difference of stopping the attack and having a catastrophic event.
Compliance and Insurance
For most organizations, compliance and insurance is not optional – particularly in regulated markets like healthcare. This usually requires audits, remaining aligned to frameworks such as NIST, or ISO 27001, and obtaining and maintaining cyber insurer policies – all of which adds costs to cybersecurity budgets.
Healthcare and financial firms are usually investing upwards of 15% of their IT budget to secure compliance. Cyber-insurance policy premiums are currently increasing due to the growing number of ransomware events, but this may still be a way to help offset your financial risk due to a specific breach event. Failure to invest in compliance will – and can add costs such as fines for your organization, alongside additional costs if you experience a data breach.
Typical Cybersecurity Cost Ranges Based on Engagement Model
Cybersecurity costs can differ significantly based on how, or what type of engagement model your programs are based upon. Some organizations have created their own internal teams, some are using a managed or co-managed model.
Each of these engagement models would complement your technology services path and say how you describe your own cost of cybersecurity for the organization. Each of these engagement models could be dictated by your average size or types of work and your risk tolerances. Understanding the typical ranges of cost for each engagement model will help you define costs, as well as expectations to avoid any surprises.
In House Security Team
Building security teams internally generally means hiring (at minimum) a couple of analysts and engineers, and a CISO, then acquiring all of the tools and continue with an ever-expanding array of things to train on. For mid-sized organizations, this is normally more than $250,000 a year. You take on full control and expertise but also the task of recruiting and retaining talent in a tight market.
This structure emerges in areas where compliance is necessary or when dealing with critical data such as in finance or healthcare. However, the total cost may be prohibitive for small company size.
Managed Cybersecurity Services
Managed cybersecurity services will give you the serenity of a predictable monthly cost and usually cost between $2,000 and $5,000 for 50 to 100 users. Managed services usually include 24/7 monitoring, threat detection, and incident response. This is a natural choice for companies that need large amounts of protection but do not have the capability to build a complete in-house offering.
Specialized resources and the ability to scale are some of the benefits of using a managed service provider for your cybersecurity needs. This is particularly appealing to SMBs and in markets where compliance requirements are modest.
Co-Managed or Add-on Services
Co-managed or add-on services will allow you to use managed security to augment your existing IT or MSP stack with enhanced security features. For a cost of $20 – $60 per user/per month you can obtain add-on services including EDR, vulnerability scanning, or compliance reporting.
The benefit of this an add-on service is that it allows flexibility to address specific risks without having to change your entire security program. This category is especially useful when firms want to increase their protection against specific risks or to meet a new regulatory requirement without dramatically increasing their budget. Project-Based Assessments and Pen-Tests (~40 w): $10k to $40k (One-Time) Based on Scope.
Project-based cybersecurity services, such as risk assessments and penetration tests, tend to range from $10,000 to $40,000 on a per engagement basis. These one-time engagements assist you in identifying vulnerabilities, testing your defenses, and conducting due diligence to satisfy compliance mandates.
Costs depend on scope, complexity, and type of industry. For example, healthcare providers may have further complexities with tests and controls as they are dealing with sensitive patient data. Investing in regular assessments is likely, and sensible, to disclose hidden risks while ultimately growing your overall security position.
DIY vs. Managed vs. Hybrid: Costs & Control Trade-Offs
Determining whether to conduct cybersecurity services as a DIY model, use managed services, or take the hybrid approach can be an exercise in balancing the costs, control, and risks of your cybersecurity position.
The DIY model allows for maximum control of resources and investment using their staff and tools, but takes substantial investment and commitment of industry professionals to maintain a captive resource pool.
On the other hand, Managed services may reduce the initial expense burden you have to figure up front, as well as put some expert oversight around that expense, but you will probably not have the direct control of internal resources that many organizations prefer.
Finally, Hybrid models begin to realize some level of both, keeping certain functions internal and the others via external outsourced sources. So the correct model is good for an organization such as yours that considers:
- Size
- Industry
- Risk-appetite and risk tolerance
It also takes into consideration the strengths your organization has internally, and what other requirements around compliance you may have, as well as the cost tests of risk, based on the impact of a breach.
A Four-Step Framework for Setting Your Security Budget in 2025
Everything is easier to digest in steps. Let’s take a look at these four simple steps to help you put together your cybersecurity budget for 2025:
- Look at your current position- risks and compliance requirements.
- Build a map of your technology and personnel plans for the period you are considering.
- Compare models you could engage in, as well as pricing through informed referrals to understand what full market cost is with full disclosure.
- Revise the plan periodically, based on shifts to your practices, business priorities and risk.
Using the four-step model may assist your organization in building a successful security program in 2025, that is also judicious and cost-effective.
Building cybersecurity practices to protect your organization into the future can be challenging since the constant barrage of cybersecurity threats are ever evolving and costs are rising. Planning and investing wisely is the only approach! Whether you build your own security program team, engage with a managed security provider like TVG Consulting, or you decide to engage the hybrid model; understanding and demystifying the true costs [and trade-offs], will allow you to better align your strategic business priorities and resources to map out budgets and acceptable expenditures according to your organization’s risk appetite.
Take the time to establish your security position, compliance requirements, and availability of your resources. Then apply the four steps above to help you establish a program that keeps sensitive data protected from attack while meeting your organizations financial goals.
