Why MSSPs lag in valuation: a case for automation

View profile for Peter Schawacker

Cyber Staffing & Recruiting | Business Innovator & Strategist | ex-CISO | MSSP & MDR | AI | GRC | DFIR/TTX | SecOps | Nearshoring | LATAM-APAC-EMEA | Emerging Markets Expertise | Data Reversibility

On the 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 of Managed Security... 🤔 Why do MSSPs trade at <2× revenue while SaaS peers snag 10×? 👀 Every new client still needs human eyes; ☀️ A 24×7 SOC really takes five analyst teams. 🤜 Switch to automation-first ops and outcome pricing. When head-count drag turns into software economics, valuation multiples follow. Full paper & sources in comments. ⤵️ #MSSP #MDR #AiSecOps #Automation #Churros #UnitEconomics

  • No alternative text description for this image
Peter Schawacker

Cyber Staffing & Recruiting | Business Innovator & Strategist | ex-CISO | MSSP & MDR | AI | GRC | DFIR/TTX | SecOps | Nearshoring | LATAM-APAC-EMEA | Emerging Markets Expertise | Data Reversibility

4w
Like
Reply
Stan Kreydin

Driving technology/security initiatives from blueprint to business value.

3w

Smaller MSSPs that target larger companies will almost always price themselves out of the market with either labor arbitrage or too much overhead. Matching to your ICP is massive for these small shops. Realizing that many smaller MSSPs rely on startups for their tools portfolio...they need to be aware of the risks to their business if/when said startups fold, sell and/or pivot away from their core business.

Like
Reply
See more comments

To view or add a comment, sign in

Explore content categories