A recent report shows that AI has reduced the workloads for virtual Chief Information Security Officers (vCISOs) by 68%, responding to the increasing demands from small and medium-sized businesses (SMBs).

As the volume and sophistication of cyber threats continue to escalate, cybersecurity has become essential for businesses of all sizes. Small and Medium-sized Businesses (SMBs) are increasingly turning to Virtual Chief Information Security Officer (vCISO) services to navigate these challenges and meet compliance demands. A recent report by Cynomi reveals that 79% of Managed Service Providers (MSPs) and Managed Security Service Providers (MSSPs) are witnessing a significant demand for vCISO services among SMBs. The “2025 State of the vCISO Report” highlights a remarkable 319% growth in vCISO adoption, with the percentage of service providers offering these services rising from 21% in 2024 to 67% in 2025. This shift indicates that vCISO services are transitioning from a niche offering to a foundational component of cybersecurity strategy, driven by the urgent need for high-level expertise without the costs associated with full-time executives.

The business impact of this growth is substantial, as service providers report increased margins, upsell opportunities, and a broader customer base. Specifically, 41% of providers have noted an uptick in upsell opportunities, while 40% have experienced improved operating margins. Additionally, 39% report a measurable expansion in their customer base, allowing access to new prospects. The vCISO services not only enhance security for clients but also position providers as trusted, long-term strategic partners rather than temporary vendors. However, some providers remain hesitant to adopt vCISO services due to operational concerns, including uncertainty around profitability, high upfront investment requirements, and a shortage of qualified cybersecurity professionals.