The world of cybersecurity is fast-paced and ever-changing. New threats emerge daily, and in response, new companies appear, promising innovative solutions. However, recent events serve as a critical reminder that the cybersecurity industry itself can be intensely volatile.
The news that the Australian Cyber Network (ACN) was winding up its operations was a significant development. This was shortly followed by the closure of other companies, such as Empowered Cyber, a small company that set out to provide independent and affordable advice. These are not isolated incidents but regular and symptoms of a deeply challenging industry. For a business seeking a dependable security partner, understanding these challenges is the first step toward making a secure choice.
The Unique Pressures on Cybersecurity Providers
The cybersecurity sector operates under a unique set of pressures that contribute to a higher rate of company closures and sales compared to many other industries.
- A High-Stakes, Relentless Environment: The core of cybersecurity work involves confronting active threats and adversaries. The technology and attack vectors change daily, creating a relentless, high-pressure workload that never stops. This intensity can lead to burnout and makes retaining expert staff a constant challenge.
- The Talent Shortage and High Costs: There is a well-documented global shortage of skilled and experienced cybersecurity professionals. This scarcity drives up salaries significantly, making operational costs for a credible cybersecurity firm very high. For many companies, these costs can become unsustainable.
- Fierce Competition and Market Hype: The promise of a lucrative market has attracted a vast number of new entrants. This creates a crowded and fiercely competitive landscape where many providers are competing for a limited share of the market, putting downward pressure on profitability for everyone.
- The In-House Dilemma: Cybersecurity providers compete not only with each other but also with their clients’ decisions to manage security internally. Often in an attempt to save money, a business might rely on a small, less experienced internal team. This approach can unfortunately lead to critical mistakes, costing the organisation far more in the long run and often being the reason a company finds itself in the news following a data breach.
- Economic Sensitivity: When economic downturns occur, businesses look to cut costs. Despite being a critical function, the cybersecurity budget is often one of the first to be reduced. For a cybersecurity provider, this means that market lows are felt even more acutely, threatening financial stability.
- A Culture of Acquisition: For some founders, the goal is not to build a lasting, decades-long business but to create a company, grow it quickly, and sell it. While profitable for the owner, this can leave clients in a state of flux, dealing with a new parent company that may have different priorities, processes, or values.
The Risks of a Short-Lived Partnership
When you engage a cybersecurity provider, you are not just buying a product; you are forming a partnership. You entrust them with intimate knowledge of your systems, processes, and vulnerabilities. If that partner suddenly ceases to operate or is acquired, your organisation could face several challenges:
- Disruption to Security Services: Your monitoring, protection, and incident response capabilities may be abruptly halted, leaving you exposed while you scramble to find a replacement.
- Loss of Strategic Momentum: A consistent, long-term security strategy is far more effective than a series of short-term fixes. Changing providers forces you to restart the process, costing valuable time and resources.
- Inconsistent Defences: Each new provider may have a different methodology, leading to a patchwork of security controls that may not work cohesively, potentially creating unforeseen gaps in your defences.
- Wasted Investment: The resources invested in onboarding, training, and integrating with a vendor are lost if they can no longer provide their service.
The Importance of a Stable and Experienced Partner
In such a dynamic industry, longevity and stability are strong indicators of reliability and trust. A provider that has weathered market fluctuations, managed high operational costs, and consistently grown its services demonstrates a sustainable business model and a true commitment to its clients.
This is where experience becomes a key consideration. A cybersecurity partner with a long history has a deeper understanding of the threat landscape’s evolution. They have seen what works and, just as importantly, what does not.
At Vertex Cyber Security, we have been a steadfast partner to businesses since our founding in 2016. 2For over nine years, we have been dedicated to providing industry-leading cybersecurity advice and services. 3Our growth has been built on a foundation of expertise, trust, and a client-first approach, allowing us to protect a wide range of organisations, from local businesses to government bodies and ASX-listed companies.
Our mission has always been to make premier cybersecurity accessible, helping organisations of all sizes build and maintain a robust security posture for the long term.
Making the Right Choice for Your Business
When selecting a cybersecurity partner, it is essential to look beyond the sales pitch. Consider their history, their client base, and their vision for the future. Ask about their financial stability and how they plan to support your business not just today, but in the years to come.
A strong partnership is the cornerstone of effective cybersecurity. Choosing a stable, experienced, and dedicated provider is one of the most important security decisions you can make.
If you are looking for a cybersecurity partner with a proven track record of stability and expertise, we encourage you to contact Vertex. Visit our website to learn more about our comprehensive suite of services and how we can help protect your organisation for many years to come.
