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Small businesses in the U.S. are proliferating despite the pandemic and they’re increasingly using cloud-based tools and other technology, a development that is driving demand for cyber security services.
A Cisco-funded report found that 70% of small business respondents have accelerated their plans to digitize as a consequence of COVID-19 and cited cloud, IT infrastructure and security as their top priorities. The 500,000 new business applications filed in the third quarter of 2020 suggests an entire new crop of companies eager to digitize—and in need of protection.
“Today, small businesses are being attacked. They’re the ones malicious actors are targeting because they’re the most vulnerable,” said Sid Rothenberg, owner of RIT Company, a Chicago-based IT services provider.
“With the pandemic, now more people are working from home; how does that small company protect their business and information? That’s one of the things we’ve helped our small clients figure out.”
So, there’s a steady or increasing number of small businesses; they’re becoming more digitally advanced at an accelerated rate, and as a result, they need accessible IT and cyber security solutions. Based on a search run in Grata, a search engine for companies, we find that the market for service providers is highly fragmented and contains enough platform opportunities to be of interest to PE investors.
This article was written in partnership with Grata.