Examining the Financial Impact of Downtime: Insights from the 2025 Calyptix/ITIC SMB Security Survey

Small and medium-sized businesses (SMBs) are increasingly at risk from cybersecurity threats, with the financial implications of downtime reaching critical levels. The 2025 SMB Security and Hourly Cost of Downtime Survey, conducted jointly by Calyptix Security Corp. and Information Technology Intelligence Consulting Corp. (ITIC), offers critical insights into the evolving cybersecurity landscape and its implications for SMBs.

Security Breaches: A Major Threat to SMBs

A staggering 86% of SMBs identified security breaches as their top business and technological threat. These incidents disrupt operations, incur significant costs, and expose organizations to compliance and legal risks.

The survey gathered responses from 715 SMB organizations, including 115 Calyptix partner MSPs and 600 additional small businesses. Ben Yarbrough, CEO of Calyptix, highlighted the importance of this research, stating, “SMBs and micro-SMBs with 1 to 100 employees are ‘our people.’ This survey sheds light on the unique challenges faced by an often-overlooked segment.”

Key Findings from the Survey

The Calyptix/ITIC study identified several critical trends that are shaping the cybersecurity landscape for SMBs:

Human Error and Remote Work Vulnerabilities
- 🔧 75% of respondents indicated that human error is a major factor contributing to security vulnerabilities.
- 🔧 69% pointed to the challenges of remote and hybrid work environments, where employees often access sensitive corporate data without adequate security measures.
Cost of Downtime
- ⏳ 37% of SMBs reported that a single hour of downtime costs between $1,000 and $5,000.
- ⏳ For 8% of businesses, the financial impact of downtime exceeds $25,000 per hour, with some reporting costs exceeding $100,000.
Increased Security Spending
- 💰 49% of firms have increased their cybersecurity budgets to address growing threats.
- 💰 Spending ranges include 26% allocating $1,000 to $5,000 annually, 14% spending $5,001 to $10,000, and 20% investing between $10,001 and $50,000 or more each year.

SMBs Face Enterprise-Level Risks with Limited Resources

SMBs contribute approximately 44% of total U.S. business revenue but often lack the resources necessary to combat sophisticated cyberattacks. Laura DiDio, ITIC Principal, emphasized, “SMBs face the same security threats as large enterprises but with significantly fewer financial and technological resources to defend against targeted attacks.”

Addressing Security Challenges: Calyptix’s Role

Calyptix Security Corp. is dedicated to supporting SMBs through robust and accessible security solutions. The AccessEnforcer UTM firewall, a flagship product, provides a comprehensive network security solution designed for SMBs and micro MSPs. The latest version, the AE1900, features enhanced processing speeds, upgraded firmware, additional ports, and expanded RAM to protect against evolving threats.

Recommendations for SMBs

To strengthen their cybersecurity posture, SMBs should:

🎓 Enhance Employee Training: Regular training ensures employees follow best practices and minimize risks associated with human error.
🛡️ Invest in Scalable Security Tools: Solutions like the AccessEnforcer UTM firewall address the unique needs of SMBs with flexibility and efficiency.
⏳ Evaluate and Mitigate Downtime Costs: Understanding the financial impact of downtime enables better allocation of resources to minimize disruptions.

By focusing on these areas, SMBs can build resilience, mitigate risks, and achieve sustainable growth in an increasingly interconnected digital landscape.

About Calyptix Security Corp. Calyptix specializes in providing enterprise-grade network security solutions tailored for small businesses. The AccessEnforcer UTM firewall equips SMBs with robust, user-friendly tools to address their unique cybersecurity challenges.

For more information, visit Calyptix Security or contact us at info@calytpix.com.