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Once reserved for Fortune 500 companies, executive cybersecurity leadership is now mission-critical for small and mid-sized businesses (SMBs) battling sophisticated threats and regulatory pressures. According to Cynomi's 2025 State of the vCISO Report, demand for virtual Chief Information Security Officer (vCISO) services has exploded—with 79% of managed service providers (MSPs/MSSPs) reporting high SMB interest. Adoption rates confirm this seismic shift: vCISO offerings among providers surged 319% in just one year, jumping from 21% in 2024 to 67% in 2025.

"vCISO services transform providers into trusted strategic partners, not just vendors," the report emphasizes, highlighting concrete business benefits including 40% higher margins, 41% improved upsell rates, and 39% expanded customer bases.

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Figure 1: Demand for Advanced Cybersecurity Services Among SMB Clients (Source: Cynomi)

The operational barriers that once slowed adoption—profitability concerns (35%), upfront investment (33%), and skills shortages (32%)—are being dismantled by AI. A staggering 81% of providers now leverage AI in vCISO delivery, automating tasks like compliance monitoring, risk assessments, and remediation planning. The efficiency gains are dramatic:

  • Average manual workload reduction: 68%
  • 42% of providers report 81-100% drop in manual efforts
  • 15% more plan AI adoption within 12 months

"AI enables teams to support more clients without compromising quality," notes the analysis, with automation accelerating reporting, task prioritization, and policy deployment.


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Figure 2: Business impact of vCISO offerings (Source: Cynomi)

With 74% of non-adopting providers planning vCISO launches by 2026, AI’s role shifts from differentiator to essential infrastructure. The technology isn’t merely trimming labor—it’s reshaping cybersecurity’s economics, allowing SMBs to access enterprise-grade protection while turning MSPs into scalable strategic advisors. As one cybersecurity veteran observed: "When AI handles the paperwork, humans can focus on the threatscape."

Source: 2025 State of the vCISO Report by Cynomi, sponsored content via BleepingComputer