Two recent moves by Australian MSPs to scale their security practice — one through acquisition and the other by adopting a new, home-grown platform — highlight just how significant tailored security solutions will be in the year ahead.
5G Networks acquires security specialist to better meet Australian client needs
Melbourne-based 5G Networks Limited announced that it had acquired Security Shift, a managed security services provider (MSSP), for $4 million. Security Shift provides cybersecurity consultancy, end-to-end managed services, and outsourced IT engineering services, and has 25 years of heritage in the space.
The acquisition comes after 5G Networks noted a “significant uptake” in its “Essential Eight audits,” which it offers to help organisations move into compliance with shifting Australian government regulation.
“We certainly see the importance and growth in the security area, we are constantly asked to assist our larger managed IT clients and have been restricted in the past as to what we could provide,” 5G Networks’ Managing Director, Joe Demase, said.
“Chris [Wright, CEO of Security Shift] and the team will enable 5GN to unlock a number of opportunities within our customer base,” he added. “I am also excited for Chris to join the executive team give[n] his experience across a number of technical disciplines in addition to his deep security experience.”
Attura adopts local security platform to meet local security requirements
Meanwhile, Atturra, which was responsible for some of the largest MSP acquisitions in Australia last year (including capturing Somerville Group for $16.5 million), has highlighted the importance of security to its own plans, inking a deal with MyCISO to launch a managed security service targeting the education and commercial mid-market sectors.
MyCISO is a Sydney-based startup, and its full security framework solution also supports the Essential Eight guidelines. It’s also compliant with key security protocols such as ISO 27001 and NIST. Under the arrangement between the two companies, Atturra will deploy the MyCISO module to provide the foundation of Somerville Group’s managed security service.
“Our clients are looking to uplift their security posture aligned to a robust security framework. Understanding the requirements of different frameworks can be complicated to manage,” said Osh Ranwaweera, GM of Connect and Secure for Atturra Managed Services.
Security was already flagged as a major priority in all markets for 2024 by Gartner. However, in Australia organisations are being particularly pressed to ramp up their security spending thanks to the Essential Eight and other initiatives of the Australian government. This is a major opportunity for MSPs, and will result in further acquisitions (as MSPs without security capabilities look to develop those capabilities quickly).
It’s also an opportunity for local startups and security vendors, like MyCISO, to develop solutions that are unique to this market, and then find local partners to help them rapidly scale in the market.
MSPs need to be moving into the security market to stay competitive in 2024. Here are some of the top types of MSSP tools to offer your partners.