The cybersecurity market is in a state of rapid transformation, according to the findings of the "2025 State of the vCISO Report" published by Cynomi, a leading Virtual Chief Information Security Officer (vCISO) platform provider. The report reveals that the percentage of managed service providers (MSPs) and managed security service providers (MSSPs) offering vCISO services has more than tripled year-over-year, rising from 21% in 2024 to 67% in 2025. This dramatic increase underscores a shift from a niche offering to a core business strategy as organizations seek cost-effective solutions to navigate the complex cybersecurity landscape.
AI as a Catalyst for Efficiency
A primary driver of this change is artificial intelligence (AI). The report highlights how AI is transforming the delivery of cybersecurity and compliance services. Service providers using AI report an average 68% reduction in workload related to vCISO workflows. Furthermore, 81% of vCISO service providers already use AI and automation in their practices, with an additional 15% planning to implement them in the next 12 months. These tools are enabling providers to scale their operations, improve profitability, and manage the challenges posed by a shortage of skilled personnel.
Surging Demand and Market Adoption
The demand for vCISO services is surging, particularly among small and medium-sized businesses (SMBs). Cynomi's survey of 200 security leaders highlighted that high demand for vCISO services grew from 75% in 2024 to 79% this year. When combined with moderate demand, that number jumps to 96%. This trend signals that structured, ongoing cybersecurity support is becoming a standard client expectation. The driver is increasingly “strategy, not panic,” prompted by growing regulatory pressure, tighter cyber insurance requirements, and rising board-level awareness.
Business Benefits and Lingering Challenges
Adopting vCISO services is yielding tangible business benefits for service providers. The 2025 report found that 41% of providers report increased upsell opportunities, 40% cite improved profit margins, and 39% report an expanded client base. However, the path to success is not without its hurdles. Challenges such as high initial costs, shortages of skilled personnel, and time-consuming manual processes persist. Furthermore, a 2024 survey showed that 93% of service providers feel overwhelmed by cybersecurity frameworks like NIST or ISO.
The Future of vCISO Services
Looking ahead, the vCISO market is set to mature further. Among providers that don't currently offer vCISO services, nearly half plan to do so by the end of the year, and another 27% are targeting 2026. The integration of AI will continue to be pivotal, making vCISO services more scalable, profitable, and effective. The report predicts broader adoption of vCISO services, expanded use of AI throughout the vCISO lifecycle, and increased return on investment (ROI) driven by intelligent tooling. As threats and regulatory requirements grow more complex, outsourcing vCISO services has become a strategic element for MSPs and MSSPs to remain competitive.