How Much Do Cyber Security Services Cost? - The Factors That Shape Your Budget
An effective cybersecurity strategy starts with a rational budget. In order to build and optimize your allocation to cybersecurity measures, you need to understand where the cost falls. Check out the following factors.

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More chaptersIn today’s digital age, cybersecurity concerns are no longer limited to only SMBs or large enterprises. It has become a business essential for startup companies and small businesses that often lack internal infrastructure and expertise to protect digital assets from increasingly sophisticated cyber threats.

Modern businesses need more than basic security consulting and tools. They require ongoing cybersecurity support, proactive monitoring, and expert guidance. Many rely on managed service providers (MSPs) for enterprise-level protection at predictable monthly costs. With tools, services, and support models varying widely in price, it is easy to either overspend on unnecessary solutions or underestimate essential protections.
The truth is that there will not be a one-size-fits-all formula for cybersecurity spending. Within the scope of this article, we break down where your budget actually goes and help you understand the real cost components behind outsourced cybersecurity services. Whether you’re planning to outsource to a managed service provider or securing your first fund for cybersecurity efforts, this post gives you the clarity and confidence you need to make informed decisions.
A General Cost Breakdown of Cybersecurity Services (with Typical Cost Ranges)
The cost for managed cybersecurity services varies depending on several factors. It often accounts for 7% to 12% of the total IT budget, from a few thousand dollars per year for small businesses to millions for large companies and enterprises.
| Business Size (Number of Employees) | Annual Cybersecurity Budget | Cost Per Employee Annually |
|---|---|---|
| Small (Fewer than 100 staff) | $10,000 – $100,000 | ~$2,500 – $2,800 |
| Medium (100 - 1,000 staff) | $100,000 – $500,000 | Varies widely |
| Large (1,000+ staff) | Millions | Varies widely |
Common Outsourced Cybersecurity Services
A cybersecurity program addresses multiple layers of risks, typically including a mix of preventative measures, ongoing monitoring, staff training, and incident response support. Managed providers deliver different service types and levels of protection required for what your organization needs. The minimum cost range for outsourced cybersecurity services is estimated to fall somewhere between $2,000 and $3,500 per month. The exact combination of services you request will determine the final cost.
Therefore, knowing what each service does, why it matters, and how it is priced will be essential for accurate budgeting. The following services represent the most commonly adopted components of a modern cybersecurity strategy:
Risk Assessment & Security Audit
For businesses with simple setups, a risk assessment or readiness audit is a foundational step for a prioritized security roadmap. It reveals your current security posture and highlights gaps that need attention. Under this service, the third-party provider will analyze your existing systems, data security controls, and policies, and identify potential vulnerabilities that threat actors can exploit.

Costs typically range from $1,500 to $15,000, depending on the size of your environment, the depth of the assessment, and whether compliance requirements are involved. Businesses with humble beginnings may spend on the lower end, while companies in regulated industries or with complex systems fall closer to the top.
Network Security (Firewalls, IDS/IPS)
Network security is tasked to monitor, control, and secure traffic moving into, out of, and within corporate networks. It typically combines firewalls, intrusion detection systems (IDS), and intrusion prevention systems (IPS). Firewalls act as the first line of defense against unauthorized access, while IDS/IPS tools monitor traffic for suspicious activity and prevent data breaches and other threats before they escalate.

Firewalls and intrusion detection/prevention systems require both initial setup and ongoing monitoring costs. The price of firewall hardware starts around $500 per month for small businesses, while managed firewall services can be charged between $50 and $200 per month. IDS/IPS solutions cost more, often falling somewhere between $3,000 and $25,000 annually.
Endpoint Detection, Protection, and Management
Endpoint security services protect devices that your employees use, including laptops, desktops, mobile devices, and servers. These endpoints are prime targets for cybercriminals as they connect directly to business data. A security provider installs advanced endpoint detection and response (EDR) tools, monitors device behavior for signs of compromise, and takes action when threats are detected.

Many businesses choose fully managed endpoint services to maintain consistent protection across all devices. With limited IT staff, they can still ensure timely updates while mitigating the risk that a single compromised device could spread malware through the organization.
EDR software typically costs $3 to $20 per device per month, while fully managed endpoint protection ranges from $10 to $50 per device per month, depending on the sophistication of the toolset. Unlike traditional antivirus software, higher-priced options deliver automated threat containment, faster remediation, and centralized visibility across all endpoints. As a result, they tend to cost more.
Cloud Security Services
Migrating data, storage, collaboration, and operations to the cloud is a core part of digital transformation for businesses of all sizes. With this shift, cloud security now becomes a critical service that secures public, private, and hybrid cloud environments from misconfigurations, unauthorized access, and evolving cyber threats. These services cover identity and access management, account protection, configuration monitoring, data encryption, and real-time threat analysis across platforms like AWS, Azure, Google Workspace, and Microsoft 365.

The total cost of cloud security depends on the number of cloud platforms (AWS, Azure, Google Workspace), the complexity of workloads, the number of users, and the required compliance features. Organizations operating in hybrid environments or relying on multiple SaaS applications generally pay higher costs because their cloud footprint is broader and requires more extensive monitoring.
For most small and mid-sized businesses, cloud security services range from $1,000 to $5,000 per month, depending on their specific security needs. You may need to pay additional expenses for MFA or enhanced identity systems, which often range from $3 to $12 per user per month.
Penetration Testing & Vulnerability Scanning
Penetration testing and vulnerability scanning are proactive security measures designed to uncover exploitable weaknesses before attackers do. Vulnerability scans are automated evaluations that identify missing patches, insecure systems, and known software flaws. Penetration tests go a step further by simulating real-world attack scenarios to assess how well your defenses hold up. These services are particularly valuable for small businesses that are scaling quickly, integrating new tools, or preparing for cybersecurity insurance requirements.

Vulnerability scanning is an automated, ongoing process that costs roughly $100 to $500 per month. Penetration testing, on the other hand, is a manual, in-depth assessment. This level of testing typically ranges from $3,000 for a small website or app to over $20,000 for a full internal network assessment. Businesses with compliance obligations or complex applications usually require more extensive testing.
Managed Detection & Response (MDR)
MDR services combine advanced monitoring tools with human threat analysts who work around the clock to identify and isolate threats. Unlike traditional managed security offerings, MDR provides deeper visibility into suspicious behavior by utilizing AI-driven analytics, threat intelligence feeds, and rapid incident response workflows. Small businesses benefit from MDR because it delivers enterprise-grade detection and response capabilities without the need to build an internal security operations center (SOC).

Prices often depend on the number of users and endpoints, the complexity of the environment, and whether 24/7 monitoring or rapid response is included. It ranges from $1,500 to over $10,000 per month. For small firms that cannot hire full-time cybersecurity professionals and build an internal SOC, MDR often represents the best balance of cost and protection, especially when dealing with evolving threats like ransomware attacks.
Security Awareness Training
Human error remains one of the leading causes of cyber incidents, so building awareness among staff is a fundamental step in any cybersecurity strategy. Providers offer structured security awareness training programs that educate employees about phishing attempts, secure password habits, risky behaviors, and their role in safeguarding company data. Training may include interactive courses, simulated phishing tests, and regular refreshers to reinforce secure practices. Over time, workforce education significantly reduces the likelihood of internal security incidents.

The training investments are relatively modest: Basic online training typically runs $2 to $10 per employee per month, while comprehensive programs with reporting features range from $1,000 to $5,000 per year. Compliance-centric training frameworks can cost between $5,000 and $20,000 annually.
Incident Response & Recovery Services
Despite best efforts, no business is immune to cyber incidents. When an attack does occur, incident response services help contain the threat, assess the damage, restore affected systems, and guide the organization through recovery. Providers may also conduct a forensic analysis to identify the attack source and recommend improvements to prevent future occurrences. For small businesses that cannot afford prolonged downtime, having access to expert responders can mean the difference between a temporary disruption and a catastrophic loss.

Many businesses maintain an annual retainer (a pre-negotiated agreement with a cybersecurity provider). The fee falls between $2000 and $10,000 to guarantee immediate assistance when an incident occurs. Without a retainer, on-demand response services can charge you from $250 to $600 per hour, and full recovery from severe attacks such as ransomware may exceed $100,000, depending on downtime and data recovery needs.
Compliance-Related Security
Businesses in regulated industries, such as healthcare, finance, and e-commerce, require specialized support to meet strict regulatory requirements for data protection. Compliance-related security services include gap assessments, policy development, log monitoring, audit preparation, and ongoing reporting. The goal is to ensure that systems, policies, and processes adhere to standards such as HIPAA, PCI DSS, SOC 2, or GDPR.

Compliance services not only prevent regulatory penalties but also strengthen overall security posture. They generally cost an amount of $5000 - $25,000 for initial assessments, with ongoing compliance monitoring ranging from $500 to $5,000 per month. Full readiness programs for frameworks like SOC 2 or PCI DSS can range from $10,000 to $50,000 or more, depending on complexity and audit scope.
Key Drivers Behind the Cost of Cybersecurity
The cost of cybersecurity services also fluctuates significantly from one business to another, even when they appear similar on the surface. That’s why we need to dive into the underlying factors that directly influence how much protection an organization needs, the type of services required, and the level of effort involved for a cybersecurity service provider.

Understanding the key drivers helps you set realistic expectations and develop a budget that aligns with your true risk profile, not someone else’s.
Company Size and IT Complexity
The number of users, devices, and systems in your organization determines the scope of work a service provider must handle. A small team with ten employees and a simple cloud setup will naturally cost less to protect than a company with multiple offices, dozens of endpoints, on-premises servers, and complex integrations. More users mean more endpoints to manage, more access points to secure, and more monitoring involved. All translate to higher service costs.
Industry & Regulatory Compliance Requirements
Your industry plays a significant role in determining the type of cybersecurity controls you must implement. Businesses in healthcare, finance, retail, and other regulated sectors will face strict compliance frameworks. For example, HIPAA, PCI DSS, SOC 2, or GDPR. Meeting these standards requires advanced security controls, extensive documentation, regular audits, and ongoing reporting. As a result, compliance-heavy industries often spend more on cybersecurity services than those with minimal regulatory obligations.
Existing Security Posture
Your starting point does matter. Some small businesses come to a service provider with outdated systems, missing patches, insecure configurations, or a complete lack of policies and documentation. If your current security posture is weak, remediation efforts increase. So, it does cost more. Organizations with stronger baselines, modern systems, and good internal practices typically spend less on both implementation and ongoing services because they require fewer corrective measures.
Service Depth and Level of Protection Needed
Different businesses require different levels of protection. Some may only need foundational services such as basic monitoring and endpoint protection, while others may require advanced capabilities like 24/7 threat detection, rapid incident response, or full managed detection and response (MDR). Higher-tier services involve more sophisticated tools, more staff hours, and dedicated monitoring teams. You pay higher monthly or annual fees. Choosing between basic and premium cybersecurity packages is often one of the biggest cost differentiators.
Technology Stack and Tooling Choices
The tools your business uses affect cybersecurity pricing. For example, cloud-based applications, custom software, legacy on-premise systems, or specialized industry platforms. Modern, cloud-native systems are often easier and cheaper to secure because they support automated monitoring and integrate well with security tools. In contrast, outdated or unsupported tools require more manual oversight and custom configurations. Licensing fees, integration requirements, and advanced security technologies also influence the overall cost of your cybersecurity program.
In-House Skills vs. Outsourced Needs
Small businesses with internal IT staff can often reduce some cybersecurity costs by managing basic tasks themselves, such as patching, policy updates, or user access reviews. However, specialized functions like penetration testing, 24/7 monitoring, or incident response, almost always require external expertise and resources. The more responsibilities you delegate to an outsourcing company, the higher your budget needs to be. As a trade-off, you can gain access to professional skill sets that would be otherwise too expensive to build in-house.
Cyber Insurance
Premiums typically range from $1,000 to $10,000 per year for small businesses, though this varies based on risk and coverage. Cyber insurance doesn’t replace cybersecurity, but it does influence how much you spend to maintain insurable risks.
Pricing Models for Outsourced Cybersecurity Services
Cyber-security providers offer several pricing structures to align pricing with the scope and complexity of protection you need. The most common models include:

- Per User/Per Device Pricing: Vendors charge based on the number of employees or endpoints requiring protection. This model is common for endpoint security, access management, and email security tools. Costs scale as your business grows, making it predictable for small teams but potentially more expensive for fast-growing ones.
- Monthly Subscription (Managed Security Services): A fixed recurring fee covers ongoing monitoring, reporting, threat detection, and support. This pricing model offers predictable monthly expenses and is commonly used by managed service providers delivering continuous protection.
- Project-Based Pricing: One-time services are priced according to the project’s scope and complexity. Costs fluctuate depending on the depth of testing, the number of systems, and regulatory requirements.
- Tiered Packages: Providers offer service bundles at different levels of protection, including basic, standard, and premium. Basic tiers may cover standard monitoring and updates, while premium tiers include 24/7 responses, advanced threat detection, and enhanced reporting. This model helps businesses choose the right level of coverage for their needs.
- Custom or Hybrid Pricing Models: Some organizations require tailored pricing based on unique environments or specialized security needs. Vendors may combine per-user pricing, monthly fees, and one-off project costs to create a custom package that fits the business’s risk profile and goals.
- Pay-as-you-Go or On-Demand Incident Response: This pricing model is popular in case of emergency needs, such as ransomware attacks or phishing attacks. You are often billed hourly or per engagement, so you can avoid recurring fees. However, this structure can become expensive during major incidents, which is why many businesses opt for incident response retainers - a type of pre-paid service agreement between an organization and a cybersecurity firm that ensures rapid access to expert support and services in the event of a security breach.
Final Thoughts
In a nutshell, cybersecurity is not a luxury but a business necessity. Our post has briefly recapped all the crucial factors you need to consider when budgeting in order not to overspend on cybersecurity services or put yourself in a financial blind.
For small and mid-sized companies, outsourcing services are viable solutions to balance their cybersecurity needs and budgets. So, do not place unnecessary strain on your budget or internal teams; outsource non-core tasks to a third party instead. It is also a smart move to better allocate your resources and control your investment.

If you are looking to strengthen your technology foundation, modernize your systems, or build secure, scalable software, Orient Software is your reliable partner. Beyond cybersecurity consulting, we provide a full suite of custom software development, QA testing, UI/UX design, and staff augmentation services for worldwide clients. At Orient Software, we deliver technical knowledge and build customer trust with our commitment to quality and security. We don’t promise the best value; we deliver it. Contact us for a free consultation.

