How to Reduce Cybersecurity Costs Effectively

Learn how to cut cybersecurity costs without sacrificing security. Discover smart strategies to reduce risks, automate processes, and stay compliant.  

Gartner predicts that worldwide spending on information security is projected to total $212 billion in 2025, an increase of 15.1% from 2024. These include investments in security software, security services, and network security. At the same time, the common types of cybersecurity costs vary depending on an organization's size, industry, and threat landscape.  

While spending on cybersecurity is constantly rising, cybersecurity decision-makers face mounting pressure to cut cybersecurity costs in the face of new threats and changing economic circumstances. At the same time, there is a misunderstanding between cybersecurity leaders and business owners in terms of how to budget cybersecurity. While business owners struggle to reduce their cybersecurity spending, 45% of cybersecurity leaders are stressed about budget restraints.  

The good news is that appropriate strategies can balance the competing demands of strong cybersecurity and limited budgets. We are going to uncover these in this article.  

• Why do cybersecurity costs go up?
• How much does cybersecurity cost?
• How much does a data breach cost?
• What is the price of a cyber insurance?
• How do we cut cybersecurity costs without sacrificing security?
 

And other questions are answered below in the text. Keep reading to learn more.

Why do Cybersecurity Costs Go Up?

The key factors that push security to the top of the priorities list and press organizations to increase their security spending are the adoption of generative AI (GenAI), cloud adoption, and a rising cybersecurity skills gap. Let’s see these in more detail:

The adoption of AI and generative AI (GenAI)

Data security concerns associated with Generative AI continue to grow. Since the release of GenAI, attackers have increasingly leveraged these tools to carry out large-scale social engineering attacks. Gartner predicts that by 2027, 17% of total cyberattacks/data leaks will involve genAI. As a response, GenAI will trigger a spike in the cybersecurity AI software markets, such as application security, data security, privacy, and infrastructure protection.  

Cloud adoption

As organizations continue to move to the cloud, there is an increase in expenses on cloud security solutions. Multicloud and hybrid environments increase the risk of shadow IT, shadow data, misconfiguration, and other factors that hinder cloud security. The combined cloud access security brokers (CASB) and cloud security posture management (CSPM) market is estimated to reach $8.7 billion in 2025, up from the forecasted $6.7 billion in 2024. And this is only the beginning.  

Cybersecurity skills gap

The global cybersecurity skills gap is a major factor driving investment in the market. Being unable to grow, hire, and retain qualified cybersecurity specialists, businesses heavily rely on cybersecurity consulting services. While turning to third-party experts is a justifiable and cost-effective decision, it adds the overhead of managing third-party relationships, contracts, and resources management. Also, several consulting companies may often be necessary to fill the internal expertise gap.

How much does cybersecurity cost?

While cybersecurity incidents and data breaches are enormously expensive, defending against them and ensuring continuous risk monitoring is also costly enough. Cybersecurity costs for businesses can be categorized into various components, each reflecting different aspects of securing an organization’s digital assets. Here’s a breakdown of what comprises these costs:

Security software

Security software generally includes antivirus software, firewalls, endpoint detection and response (EDR), identity and access management (IAM), data loss prevention (DLP), encryption software, intrusion detection/prevention systems (IDS/IPS), backup and recovery software, etc. Costs can vary significantly based on the number of users and the complexity of the systems used. For instance, endpoint protection may cost between $5 and $10 per device per month​.

Security services

These include managed security services, incident response services, risk assessment, compliance auditing, etc. Many businesses must comply with regulations such as GDPR, HIPAA, or PCI-DSS, which can incur annual costs ranging from $15,000 to $100,000 or more depending on the specific requirements​, company size, and technology footprint. However, without this spending, most organizations would not be able to function.

Network security

Whoever controls your network can get into all of your systems and data. Hackers often exploit organizations' networks to steal sensitive data, install ransomware, or gain unauthorized access to valuable resources for financial gain. This is why network security investments, including firewalls, secure VPNs, and intrusion detection/prevention systems (IDS/IPS), are crucial to overall cyber security. The costs associated with these tools can vary widely, with a single firewall can cost up to $10,000, depending on the features and scale​.  

Personnel Cost

Qualified security personnel is a proven way to enhance an organization’s cybersecurity posture. Cybersecurity experts lead cybersecurity programs, maintain compliance, and manage cybersecurity risks, thereby lessening the likelihood and severity of possible data incidents. At the same time, hiring cybersecurity professionals can be a significant expense, with average salaries for roles like compliance officers around $73,255 annually​. Depending on the expertise level, experience, and job location, cybersecurity professionals’ annual cost to organizations ranges from USD 90000 to over 200000.  

Although expertise in cybersecurity and the use of advanced technologies are key to maintaining security, companies are always exploring ways to lower expenses without diminishing security standards. Continue reading to learn about the ways how to cut cybersecurity costs wisely.  

How Much Does a Data Breach Cost?

Regardless of how much organizations invest in their security—whether it's millions of dollars with top-tier cybersecurity experts or affordable monthly subscriptions to cybersecurity software—they remain potential targets for cybercriminals. Data breach is one of the biggest cyber investments, averagely reaching USD 4.88 million in 2024. The main data breach expenses are associated with detection and escalation, business disruption, post-breach response, and notofication:  Detection and escalation - USD 1.63 million. This includes activities that enable organizations to detect the data breach:

• Forensic and investigative activities
• Assessment and audit services
• Crisis management
• Communications with executives and boards

Notification - UDSD 0.43 million. Activities that enable an organization to notify data subjects, data protection regulators, and other third parties:

• Emails, letters, outbound calls or general notices to data subjects
• Determination of regulatory requirements
• Communication with regulators
• Engagement of outside experts
   

Post-breach response - USD 1.35 million. Activities to help victims of a breach communicate with an organization and conduct redress activities to victims and regulators include:

• Help desk and inbound communications
• Credit monitoring and identity protection services
• Issuing of new accounts or credit cards
• Legal expenditures
• Product discounts
• Regulatory fines
     

Lost business - USD 1.47 million on average. Activities that attempt to minimize the loss of customers, business disruption, and revenue losses include:

• Business disruption and revenue losses due to system downtime
• Cost of losing customers and acquiring new customers
• Reputational damage and diminished goodwill

By proactively reducing the likelihood of data breaches, organizations can avoid legal fines, reputational damage, downtime, and other attributes of cyberattack attacks. This approach not only strengthens organizations’ security posture but also allows them to allocate resources more efficiently. Furthermore, minimizing breach risks leads to significant long-term savings on cybersecurity expenses, making it a strategic investment rather than a reactive cost.

How Much Does Cyber Insurance Cost?

The always-heightened cost of a data breach underscores the importance of spending on cybersecurity rather than on a post data breach response. At the same time, businesses can also consider cyber insurance. It can neither substitute robust cybersecurity practices nor prevent a data breach. However, cyber insurance is critical in controlling overall data breach expenses.  

Cybersecurity insurance costs vary greatly depending on the size of the policy and other factors such as:  

• business’s size, industry, and revenue,
• amount and sensitivity of data the businesses operates,
• level of network security, and
• previous claims made.
   

While exact rates differ, businesses can expect to pay from several thousand to hundreds of thousands of dollars annually, depending on the abovementioned factors.  

As we already mentioned, no cyber insurance can substitute a proper cyber hygiene every organization must implement to minimize the risk of a data breach. So, let’s uncover sustainable strategies to reduce cybersecurity cost without hindering security.

Sustainable Strategies to Reduce Cybersecurity Costs

1. Prioritize Risk Assessment

Not all cybersecurity risks are equal, and protecting against every possible threat is neither practical nor cost-effective. Start by conducting a thorough risk assessment. Identify your business’s most critical assets—whether they are sensitive customer data, intellectual property, or even government-created information crucial for national security. Once you’ve determined what’s most valuable, focus your resources on protecting those key areas.  

Read more about 5 Benefits of a Security Risk Assessment.  

A targeted approach ensures that your budget is allocated to where it matters most, allowing you to safeguard high-priority risks while minimizing overall costs.

2. Automate Security Processes

Manual security management can drain both time and resources. Automation tools offer an affordable solution by handling repetitive tasks such as threat detection, patch management, and data monitoring. By automating routine processes, you free up valuable IT staff to focus on more strategic security initiatives, improving efficiency while reducing costs. Some of the examples of how the routine cybersecurity processes can be automated include:

• Data Loss Prevention (DLP) solutions that automatically monitor, detect, and prevent the unauthorized transfer of sensitive data.
• Endpoint Detection and Response (EDR) systems that monitor endpoints for suspicious activity and automatically respond to potential threats.
• Identity and Access Management (IAM) solutions that automate the management of user identities and access permissions, ensuring that only authorized personnel have access to critical resources.
   

Additionally, automation reduces the chance of human error, a common cause of breaches, helping ensure better overall protection.

3. Invest in Cloud Security

Cloud services offer scalable security solutions that can be more cost-effective than traditional on-premise systems. Many cloud providers include built-in security features such as encryption, MFA, intrusion detection systems, etc. These and many other features save your costs as they cut the need to implement these protections separately.  

Using cloud infrastructure, organizations can also benefit from flexible pricing models, allowing them to pay only for the services they use, reducing unnecessary expenditures on unused resources.

4. Leverage Managed Security Services

Outsourcing to a Managed Security Service Provider (MSSP) can be an excellent way to reduce cybersecurity costs without cutting back on protection. MSSPs offer expert monitoring, incident response, and compliance management for significantly lower costs than it would be offered by an in-house security team.  

MSSPs are especially beneficial for small and medium-sized businesses, as they provide access to enterprise-grade security tools and expertise, ensuring strong protection at a lower cost.  

5. Employee Training as a First Line of Defense

Cybersecurity is not just about technology—it’s also about people. Many cyberattacks, such as phishing or ransomware, exploit human error rather than system vulnerabilities. Regularly educating your employees about cybersecurity best practices is one of the most cost-effective ways to enhance your security posture.  

From recognizing phishing attempts to using secure passwords, small changes in employee behavior can dramatically reduce the likelihood of a breach, saving your business from costly damage.

6. Conduct regular compliance assessments

Compliance assessment is the process of evaluating an organization’s people, processes, and technologies to ensure compliance with applicable laws, regulations, and industry standards. The whole compliance assessment process is built on identifying the relevant regulations and standards applicable to the organization, such as PCI DSS, the Health Insurance Portability and Accountability Act (HIPAA), and the General Data Protection Regulation (GDPR).  

Compliance assessment is essential for organizations as it helps identify and mitigate the main risks to sensitive data and systems and protects against financial implications of non-compliance. By conducting regular compliance assessments, organizations can demonstrate their commitment, enhance trust with stakeholders, and mitigate the potential impact of security breaches or regulatory violations.  

Furthermore, many regulatory requirements overlap with general cybersecurity practices, so compliance often aligns with securing your most important data.

7. Rely on zero-trust security model

Zero Trust is a security model based on the principle of “never trust, always verify.” It relies on a constant verification of user identities and minimizing users’ access data access to information only necessary to perform their job functions. This practice has delivered a 92% return on investment with a payback period of less than half a year and lowers the probability of a data breach by as much as 50%.  

Being a cybersecurity approach rather than a solution or a product, zero trust architecture provides maximum security at minimum cost.  

How Planet 9 Can Help Reduce Cybersecurity Costs

At Planet 9, we understand that cybersecurity is a critical concern for businesses of all sizes. We also know how many organizations, especially for small and medium-sized enterprises (SMBs), struggle to allocate their budgets. Our tailored services are designed to optimize your cybersecurity investments without compromising security:

• Planet 9 virtual CISO services strengthen cybersecurity by providing strategic oversight and expert guidance at scalable prices.
• security risk assessments to help identify vulnerabilities specific to every business, allowing for a more focused resource allocation.
• compliance services that help organizations be and remain compliant with regulatory requirements efficiently, reducing the potential for costly fines and breaches.
     

Achieve robust security while minimizing costs with Planet 9 and ensure your business remains resilient in an ever-evolving threat landscape.  

‍Book a free consultation to learn more or contact the Planet 9 team for help with your security and compliance challenges. We’ll be happy to assist!