Smaller resellers specializing in cybersecurity for small and medium-sized businesses (SMBs) are poised for a successful start to 2024 in Europe, according to analysis conducted by CONTEXT.
CONTEXT defines smaller resellers (SMRs) as those whose primary focus is on serving small, medium, and SOHO customers. The market watcher claims that SMRs in France, and to a lesser extent the UK and Italy, have been able to take advantage of the growing demand from SMBs. This demand has been fueled by increased investment and the need for more tailored cybersecurity solutions.
The revenue sales performance in France serves as an example, with figures for Week 52 of 2023 showing that the country is the strongest performer in cybersecurity sales through distribution. Across Europe, cloud security revenue sales as of Week 52 experienced a four percent year-on-year growth. However, endpoint security and network security saw a decline of 1.5 percent and 0.5 percent, respectively, due to a weak Q3 and Q4 in 2023.
In terms of cloud security, France outperformed the overall European revenue sales growth for the period, with a year-on-year sales increase of 26.2 percent. The UK followed with 13.9 percent growth, and Italy with 11.8 percent growth.
While overall cybersecurity revenue sales experienced a slight decline of 0.3 percent, the year finished strong after a significant increase in Week 50 across the top five markets: the UK, France, Germany, Italy, and Spain. This period is typically important in cybersecurity channel sales due to customer renewals and upgrades.
Joe Turner, the Global Director of Research & Business Development at CONTEXT, highlighted the opportunities that the SMB space presents for channel partners. He emphasized the significant growth potential of the SMB market, which could reach a global market size of $17tn-18tn by 2025, according to figures from Black Hat Europe 2023. Turner also mentioned the higher profit margins that can be achieved by providing high-quality services and support tailored to the specific needs of SMBs. Additionally, he pointed out the recurring revenue opportunities available in the SMB space, as SMBs increasingly seek cloud-based solutions that can be managed by qualified professionals.
Overall, the analysis from CONTEXT indicates a positive outlook for smaller resellers in the cybersecurity market, particularly in serving the growing SMB sector.