High Wire Networks has launched a new warranty program that it says will provide a financial safety net for managed service providers (MSPs) and their business clients in the event of a cybersecurity breach.
As High Wire explains, the program addresses the increasing rise in cybercrime, with malware and ransomware attacks causing breaches that can result in costly remediation and lost sales, as well as fines and penalties.
According to the company, benefits of the Overwatch Cyber Warranty Program include:
- Increased monthly recurring revenue (MRR) from full-stack sales.
- Decreased risk of cyberattacks.
- Improved return on investment.
- Reduced breach liability.
- Greater differentiation from competitors.
- Lower customer churn.
The Cost Of Cybercrime
According to IBM’s latest Cost of a Data Breach Report, a data breach can now cost a business $9.4 million on average, with 60% leading to the cost being passed onto customers through increased prices, and that diminishes business competitiveness.
Last year there were more than 4,100 publicly disclosed data breaches that exposed over 22 billion customer records.
High Wire’s Warranty Program: Additional Insight
Stephen LaMarche, COO, High Wire Networks, commented:
"Given the costs of the average data breach running into the millions and so few businesses addressing the risk with cyber insurance, our MSP channel partners are understandably concerned about a costly incident occurring under their watch. Combining our Overwatch Managed Cybersecurity monitoring, detection and response with our cyber warranty protection plan can provide peace of mind for MSPs and their business customers, plus a meaningful competitive edge all around."
Overwatch Cyber Warranty is not cyber insurance, but it can be paired with more affordable cyber insurance policies for added protection, the company said.
This rollout comes just weeks after the company rolled out its new veteran-focused job training program.
High Wire’s Growth Plans
High Wire recently sold off its legacy staffing business in an $11.5 million deal. The company did not disclose the buyer of the subsidiary, but said the transaction consisted primarily of the elimination of debt and cancellation of certain shares of its Series D preferred equity.
In addition to driving higher quality revenue streams and profitability, the sale of the staffing business was part of a larger initiative by the company over the last several months to strengthen its capitalization and organizational structure, eliminate high-interest debt, secure more favorable financing, and prepare for an uplisting to a major U.S. stock exchange, High Wire said.
The company estimated its revenue for 2022 at $27 million, an increase of 27% from the previous year. Most of that revenue was recurring based on long-term contracts, and the company says it expects this to continue to expand in 2023 with the anticipated growth of its managed service offerings.
The company’s growth in managed services has been driven by a growing number of channel partners who have expanded their managed cybersecurity service offerings using High Wire’s Overwatch cybersecurity solution, according to the company. Membership in the company’s channel partner program now totals more than 600 worldwide.
