The 2024 State of the vCISO Report continues to highlight the rapid growth and increasing demand for virtual Chief Information Security Officer (vCISO) services. According to a survey commissioned by Cynomi and conducted by Global Surveyz, the vCISO market is booming, with service providers and clients alike reaping significant rewards. This surge is expected to accelerate through 2025, as more Managed Service Providers (MSPs) and Managed Security Service Providers (MSSPs) add vCISO offerings to meet the growing security needs of small and medium-sized businesses (SMBs).
While the vCISO landscape presents exciting opportunities, providers face challenges related to technology, compliance, and expertise. This report delves into the current trends, adoption rates, challenges, and strategies that MSPs and MSSPs need to navigate to succeed in the evolving security landscape.
Who Will Offer vCISO Services? Nearly Everyone by 2025
One of the most striking findings in the report is the near-universal adoption of vCISO services. According to the survey, 98% of MSPs and MSSPs that don’t currently offer vCISO services plan to do so soon. This surge reflects the increasing demand among SMBs for specialized security and compliance expertise, which they often cannot afford on a full-time basis.
As seen in Figure 1 of the report, service providers are aligning vCISO services with their long-term growth strategies. By integrating these offerings into their portfolios, MSPs and MSSPs can provide SMBs with top-tier cybersecurity solutions in a cost-effective, scalable way.
The Changing vCISO Landscape
The vCISO market is growing rapidly, with 21% of MSPs and MSSPs already offering these services—up from 19% in 2023. This growth is driven by SMBs’ increasing need for cybersecurity expertise to protect their assets, ensure compliance, and meet rising cyber insurance requirements. However, many SMBs lack the resources to hire a full-time CISO, making the flexible, cost-effective vCISO model a perfect solution.
The report predicts that nearly all MSPs and MSSPs will incorporate vCISO services by 2025. This shift signals a change in mindset, as providers recognize the essential role these services play in helping SMBs navigate complex security and compliance landscapes.
The Strategic Opportunity of vCISO Services
The financial and operational benefits of adding vCISO services are clear. According to the report, 59% of MSPs and MSSPs that have integrated vCISO offerings have increased their revenue and margins. Moreover, 43% have reported improved customer security, and 38% have experienced enhanced client engagement and upselling opportunities for additional services.
These findings, shown in Figure 3, demonstrate that vCISO services help service providers position themselves as trusted security advisors, driving customer loyalty and boosting revenue.
Challenges to Offering vCISO Services
Despite the clear advantages, offering vCISO services comes with its challenges. The report highlights several obstacles MSPs and MSSPs face when entering the vCISO market. The most common issue is the lack of appropriate technology, with 29% of respondents citing this as a roadblock. Additionally, over a quarter of respondents pointed to limited security and compliance knowledge as a significant barrier.
Other challenges include the initial investment required for building a vCISO offering, hiring skilled personnel, and developing work processes that can support clients effectively. Hiring in particular is challenging due to the scarcity of qualified security experts, which makes it costly to onboard talent capable of managing complex security frameworks like NIST, ISO, PCI-DSS, and GDPR.
The Role of a vCISO Platform
A key solution to overcoming these challenges lies in using a vCISO platform. These platforms enable MSPs and MSSPs to deliver security and compliance services without needing deep internal expertise or a large investment in technology.
As seen in Figure 5, vCISO platforms offer numerous benefits, including standardizing processes (36%), accelerating employee onboarding (34%), and providing easy access to compliance frameworks (33%). By using a vCISO platform, service providers can scale their operations, deliver high-quality security services, and increase revenue.
Security Strategies for 2025 and Beyond
Looking ahead, the demand for vCISO services will continue to grow as cybersecurity and compliance become strategic priorities for SMBs. Nearly every MSP and MSSP is expected to offer vCISO services by 2025, aligning with their goals to scale and diversify their service portfolios.
A vCISO platform will play a crucial role in helping service providers overcome challenges related to technology, expertise, and scalability. By leveraging such a platform, MSPs and MSSPs can onboard new team members, manage compliance requirements, and provide expert-level security services to clients—ultimately driving growth and profitability.
In conclusion, vCISO services represent a vital growth opportunity for service providers, offering them a way to enhance customer security, build long-term trust, and achieve their strategic objectives in an increasingly complex cybersecurity landscape.
For more in-depth insights, download the full State of the vCISO Report 2025.
