SMBs Push Ahead in Cybersecurity Leadership

Why SMBs are moving faster

What factors are driving SMBs to modernize their cybersecurity strategies more rapidly than many large enterprises?

Matt Lee: SMBs have the advantage of agility. Because they are often cloud-native, they do not have the same decades of legacy infrastructure to drag along. This means fixes can be applied quickly in the background without the delays and bureaucracy that enterprises face. SMBs are also faster to adopt identity-centric, cloud-first models, which makes them more resilient and responsive than larger organizations that are tied to slower change management processes.

Rich Dean: I agree agility is a core attribute SMBs share that gives them the ability to move faster than the enterprise class. They also modernize because they need simplicity. Cloud-first solutions and automation let them bypass legacy complexity and get straight to stronger protections. For small businesses without big security teams, that simplicity makes modernization possible and often puts them ahead of enterprises still tied down by legacy systems.

Identity-first models and the power of APIs

How are identity-first and API-driven security models helping SMBs adopt more agile and scalable defenses?

Lee: In the past, security was tied to individual devices or networks. Today, SMBs are shifting to identity-first models, which means one policy can follow the user across all their applications and environments. For example, if I sign into a SaaS tool with Microsoft Entra ID or Google, that identity follows me everywhere and creates one policy framework rather than fragmented logins and siloed controls.

When you add API-driven platforms into the mix, security settings can be applied across the board and updated quickly when changes are needed. This scalability lets a small IT team or MSP partner extend enterprise-grade security across every client or user with consistency and speed.

What advantages do SMBs have when it comes to leaving behind legacy infrastructure compared to enterprises?

Lee: SMBs don’t have the same level of technical debt or sprawling systems that enterprises do. A bakery or a hardware store can move to a modern SaaS-based POS system far more easily than a large enterprise can rework hundreds if not thousands of interconnected systems. Smaller scope means modernization projects are less complex, which makes it easier for SMBs to keep up.  However, the ones that don’t adapt risk going out of business. Survival itself drives faster adoption of modern, secure platforms.

Is there evidence that enterprise CISOs are starting to look to SMBs and MSPs for inspiration or best practices?

Lee: While large organizations can be slow to adapt, forward-looking CISOs are starting to take cues from the way SMBs approach security. SMBs’ agility allows them to implement identity-first, cloud-based strategies more quickly and enterprises are beginning to recognize the advantages of that model.

For example, Pax8’s Chief Trust Officer has embraced passwordless, identity-centric strategies across a large user base. That kind of approach, born in the SMB and mid-market space, is increasingly inspiring enterprises to rethink their own models.

MSPs as force multipliers for SMB security

What role do MSPs play in accelerating cybersecurity maturity for SMBs and how has that relationship evolved in recent years?

Lee: MSPs are force multipliers. Most SMBs cannot afford in-house experts for backups, compliance, or security operations. An MSP spreads those costs across many clients, giving SMBs access to enterprise-class capabilities at scale. Historically, MSPs emphasized “keeping the lights on.”

Now they are much deeper in their customers’ businesses, guiding decisions on SaaS adoption, identity management, automation and even AI-driven workflows. Without MSPs, SMBs would be waiting years for vendor-level consumer safety protections to catch up. With them, they are modernizing much faster.

Dean: MSPs are on the front lines. We’ve gone from break-fix, to proactive monitoring, and now into this new AI-powered era. What’s different today is tools like agentic AI that can plan and act on their own. Instead of just keeping SMBs online, MSPs are helping them build security into everyday workflows and move faster toward real maturity.

SMBs often operate with limited budgets and staff. How can they make meaningful progress in cybersecurity without enterprise-scale resources?

Lee: The key is economies of scale. A business with $500,000 in revenue that spends 6 to 7% on technology, including laptops and line of business software cannot afford a dedicated backup engineer. However, if it uses an MSP the company effectively shares a team of experts with other SMBs. Automation also levels the playing field. APIs and emerging AI tools allow MSPs to deliver consistent, scalable protections without massive labor costs. The lesson for SMBs is not to go it alone or hire a “friend of a cousin” to manage IT, but to invest in a professional MSP that can apply frameworks and best practices effectively.

Dean: In addition, SMBs should also begin learning, investing in and leveraging AI to supplement their workforce. Encouraging employees to explore new ways to use these tools and share best practices across their teams can pay off quickly. Tools like Microsoft Security Copilot, with capabilities such as Promptbooks and AI agents, enhance existing skills by providing direct access to XDR data and a cybersecurity-trained AI model. This enables the creation of standardized playbooks to query data and take action, directly supporting the kind of automation Matt described.

From your perspective, what are some common pitfalls or missteps SMBs still make when modernizing their security posture?

Lee: Too many SMBs, and some MSPs, modernize without a framework. Without benchmarks such as the NIST Cybersecurity Framework or CIS Critical Controls, there is no clear way to measure progress. It is like shooting into the woods without a target — you may think you are making an impact, but you have no way to know if you are hitting what matters.

Another common pitfall is assuming that simply buying a security product means your company is protected. Just like cars are not made safe by a single seatbelt, cybersecurity requires systematized layers such as identity, access control, backup, detection and response working together.

Dean: Benchmark frameworks, as Matt points out, are essential. Where SMBs often fail is in implementation both because of the complexity of putting certain security controls in place and their failure to consistently monitor for changes. Without that ongoing visibility, they can be unaware of their true security posture.

How is secure Microsoft 365 management tied to broader cybersecurity modernization for SMBs? And what are some practical steps MSPs can take to reduce risk in this area?

Dean: Microsoft 365 is often the front door to an SMB’s business, which makes misconfigured tenants one of the biggest risks today. Attackers target them because they hold identities, email, and collaboration tools that can quickly be leveraged for broader compromise. For MSPs, modernization starts with standardizing security across tenants, implementing conditional access, enforcing MFA, securing collaboration settings and ensuring reliable backup. These practical steps not only reduce risk but also lay the foundation for broader cybersecurity maturity.

Syncro serves MSPs that manage IT for small businesses. What trends are you seeing in how these service providers approach modernization, cloud adoption and Zero Trust architecture?

Dean: I think every provider approaches this differently, as each is organically unique depending on the type of clients they focus on, the markets they serve, and their overall maturity level. For some, especially those supporting remote or startup operations, modernization means going cloud-first with Microsoft 365 and SaaS tools. Others, like in healthcare or manufacturing, move more cautiously because of compliance, established operational requirements and dependencies on legacy entrenched applications.

Across the board, the trends are clear: moving away from on-prem servers, adopting cloud-native platforms, and layering Zero Trust principles like identity-based access, least privilege, and continuous verification. However, this can be hard to do with organizations that have customer applications tied to Microsoft AD, since migrating off AD can be challenging and often not cost-effective. MSPs are finding that balancing these realities while still standardizing security is becoming the new normal.

The future of SMB vs. enterprise security

Looking ahead 3 to 5 years, what do you think the cybersecurity landscape will look like for SMBs versus enterprises and who will be leading whom?

Lee: Three years from now, nearly every SMB will be operating in the cloud, signing into SaaS platforms with a central identity provider. In contrast, enterprises will still be nursing along older systems because the economics do not incentivize them to re-platform from scratch.

In five years, I expect SMBs will still be leading innovation due to their flexibility. By then, regulatory consumer safety mechanisms, much like seatbelt laws in cars, will likely force larger providers to raise the floor on security. Enterprises will always face more complexity, but SMBs, supported by MSPs, can move faster and adopt modern protections sooner.