By now we have all heard about the Equifax Data Breach in which the records of approximately 143 million Americans were breached between May & July of this year. There is no telling the total fallout and impact this will have on Equifax or the approximately 143 million Americans compromised as this plays out.
In 2013, Target had a data breach that affected 41 million consumers. In the European Union with the adoption of the General Data Protection Regulation (GDPR) the responsibility of protecting customer data falls squarely on the shoulders of businesses. The risk is real and growing thanks to the Internet of Things (IoT), where more and more electronic devices are becoming endpoints on the network, and subsequently an entry point for those that would do us harm. From BBQ Smokers to your home’s thermostat, everyone’s cyber foot print is getting wider and deeper. As this new compliance standard takes place in Europe, and with hefty fines being possible for non-compliance, businesses will have to make a significant resource and capital investment to ensure the proper security systems and protocols are in place.
Ginni Rometty, IBM's CEO, was quoted as saying "Cybercrime is the greatest threat to every company in the world." We know all about Equifax & Target. Then there are the hacks and breaches which go unreported by privately held and unregulated companies who are fearful of how cyber incidents will damage their reputations. Being hacked or breached can have a negative impact on revenues, company valuation when raising capital, customer acquisition and retention, and their ability to recruit top talent. There is so much at stake, and the need to utilize the latest and greatest cyber security technology has never been greater.
You can’t beat the crooks, but we have one way to stay ahead of them! As soon as a new technology comes out the clock starts, crooks are looking for ways to beat it, find a back door, or some loophole. Your customers should not own this technology and hold onto it longer than they should because it is bought and paid for. Businesses should be getting in and out of the latest and greatest cyber security technology every 3 years at a minimum. The best way to do this is on a monthly usage agreement. They don’t need to own the technology; they need to use the technology. A monthly usage agreement not only allows them to conserve their capital and fix the cost of owning and maintaining the technology, but it makes it extremely easy to continuously get the latest and greatest cyber security technology.
For example, a company has a 36 month usage agreement for cyber security technology for $2,000 per month. After 36 months, the company has the old equipment removed and replaces it with the most up-to-date cyber security technology for right around $2,000 per month, give or take a bell or whistle. With monthly payments, the company has no difference in their cash flow and has a built in refresh cycle. Since they don’t own the solution and have a built in decision point, they are not leaving it in place longer than they should.
To help your customers utilize the most up-to-date cyber security technology and keep their business secure, show them the benefits of purchasing technology on a monthly payment cycle. They'll have a predictable budget with built-in refreshes and your service delivery included for one nice neat single monthly payment.
The Hybrid Business Model
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- cyber security
- monthly payment