Lenny ZeltserMy new guidance on building security products for SMBs. I first tackled this market about a decade ago at NCR, but much has changed since, especially the role of MSPs and VARs for go-to-market strategies. A few findings as I revisited this space:
1. Channel concentration is a real risk. SentinelOne disclosed one partner accounting for 20% of total revenue, with a second reaching 10%.
2. Cyber insurance and customer compliance are buying triggers. Some SMBs arrive with a controls checklist from their insurer or customers.
3. AI readiness among MSPs dropped from 90% claimed in 2024 to under 50% for actual deployment in 2025.
4. The top three RMM/PSA platforms hold over 60% of the market, and Kaseya is bundling security into the subscription.
Details at https://zeltser.com/smb-security-product-strategy
Building Security Products for SMBs
Building security products for SMBs differs from enterprise markets in distribution, pricing, and product design. Vendors who merely repackage enterprise solutions at a lower price point struggle, while those who design around the segment's constraints find a large and growing market.