Cipherpoint Ltd (ASX:CPT) has launched two new cyber initiatives to address the demands of small and medium sized businesses (SMBs) as well as local governments.
In anticipation of the Federal Government's policy announcements last night, the company is bringing forward plans to enhance its own investment in cyber security and to support hiring and training of additional resources with tax incentives, in what it considers is a $250 million market.
Cipherpoint's managed cyber security service will be designed to address the security needs of SMBs following recent increases in malicious cyber activity and government warnings.
CPT provides IT and cyber security solutions to a wide range of enterprise sectors as well as the government.
Sixty-two per cent of SMBs have been subject to cyber incidents, according to the Australian Cyber Security Centre Reports.
Based on ABS data (but excluding sole traders), Cipherpoint estimates that the SMB segment has 260,000-300,000 small and medium businesses and 2.5-3.0 million employees. Taking even a $100 security expense per employee per year into consideration, this represents a $250 million market.
Low -ost solution
Cipherpoint's service will focus on providing a low-cost, automated solution that reduces attacks as well as manages detection and response to threats that may negatively impact operations. Malware, phishing, hacking, denial of service, identity theft and other threats are included.
As SMBs undergo digital transformation, the service will support the Australian Cyber Security Centre (ACSC) Essential Eight and other relevant standards. SMBs will be able to take advantage of accelerated tax deductions for training, the company added.
Brace168, the firm's subsidiary, has existing SMB customers who use its security and managed desktop services, which allows the firm to develop appropriate use cases.
"As a small agile and growing player in this sensitive sector Cipherpoint is well placed to move quickly to take advantage of these market opportunities," said CPT chairman Ted Pretty.
Councils & government
Local government will be the focus of another multi-tenant managed security service.
Local and regional councils will be able to take advantage of these services, said the company, without the hassle of maintaining their own cyber personnel or the overhead associated with hiring and supporting them.
An earlier discussion with key LGAs about their security concerns led to this initiative.
Local councils in Tasmania have already received user awareness training from the company's VITCS subsidiary.
Tasmania has 29 local councils, while Australia has more than 537 councils. Nearly 55% of these councils serve rural, regional or remote areas, with each handling sensitive data and managing important infrastructure.
A NSW Audit Office report found that a majority of councils have yet to put basic governance and internal controls in place to manage cyber security.
In addition to the existing enterprise managed security services, the company says these new services will add value.
In addition, CPT is in the process of creating a second security operations center in Tasmania. In addition to serving government and business customers in Tasmania, the centre is strategically located to provide solutions across Australia.