Cyberattacks nowadays have become a constant threat—ransomware, phishing, insider breaches—to name a few. But what’s truly alarming is the hidden financial cost of ignoring security measures.
Two critical components in building a strong, resilient cybersecurity framework are Unified Endpoint Management (UEM) and Identity and Access Management (IAM). These solutions are not just about protecting data or managing devices; they are about saving businesses from potentially crippling financial losses. Despite their importance, many organizations still need to pay more attention to the economic impact of security gaps.
UEM and IAM solutions do more than just protect your business—they are strategic investments that can help you avoid costly penalties, minimize downtime, and prevent the long-term financial impact of poor cybersecurity.
The hidden costs of cybersecurity gaps
Operational downtime
Every minute of downtime can cost businesses thousands of dollars, depending on the size and industry. When a security breach occurs, whether it’s due to malware or compromised access credentials, the immediate impact is often operational disruption. Systems go offline, employees are unable to perform tasks, and business processes come to a halt. According to a study by Ponemon[1], the average cost of IT downtime can range from $5600 to $9000, which translates to approximately $300,000 per hour.
The costs of downtime are not just immediate but also long-term. When critical systems or applications are offline, customer service suffers, customer trust is eroded, and ultimately, revenue is lost. UEM, which helps businesses proactively manage and secure devices across an organization, can help prevent downtime by ensuring that endpoints are secure, up-to-date, and functioning properly.
This proactive approach helps businesses avoid disruptions that would otherwise arise from outdated or unsecured devices.
Data breaches and compliance penalties
Data breaches are another major cost that many businesses face. The financial toll of a breach extends far beyond just the loss of sensitive data. Businesses also face compliance penalties and legal fees, which can add up to millions. For instance, under GDPR, organizations can be fined up to €20 million or 4% of their annual global turnover, whichever is higher, for failing to protect personal data.[2]
IAM plays a pivotal role in preventing breaches by controlling user access and ensuring that only authorized individuals can access sensitive systems and data. By implementing IAM solutions that utilize multi-factor authentication (MFA), role-based access control (RBAC), and continuous monitoring, businesses can mitigate the risk of unauthorized access and data breaches. Not only does this reduce the likelihood of a breach, but it also protects organizations from the potentially devastating financial consequences that follow.
Incident response and recovery costs
When a security incident occurs, businesses are forced into incident response mode. This involves a series of costly steps: investigating the breach, containing the damage, notifying affected parties, and repairing systems. According to IBM’s Cost of a Data Breach Report[3], the average cost of a data breach in 2023 was $4.45 million.
These recovery costs are often underestimated, and the longer it takes to detect and respond to a breach, the higher the costs. With effective UEM and IAM systems in place, businesses can reduce the time it takes to identify and contain threats. UEM enables organizations to continuously monitor and update their devices, ensuring that any vulnerabilities are patched quickly, while IAM helps to prevent unauthorized access, thus reducing the attack surface.
UEM and IAM as preventative measures
How UEM reduces operational costs
Unified Endpoint Management (UEM) provides a centralized way to manage and secure all endpoints—laptops, desktops, mobile devices, IoT devices—across an organization. One of the primary ways UEM helps reduce operational costs is through automation. Automating software deployment, updates, and security patches ensures that devices are always secure without requiring manual intervention. This reduces the burden on IT teams and prevents costly delays in addressing vulnerabilities.
Additionally, UEM solutions provide real-time monitoring of all devices, allowing IT teams to spot potential threats before they escalate. This early detection minimizes downtime and prevents operational disruptions, saving businesses money in the long run.
IAM’s role in mitigating risks
Identity and Access Management (IAM) solutions are crucial for managing user access and ensuring that only authorized users have access to sensitive systems. IAM reduces the risk of internal threats and unauthorized access by enforcing policies that limit what users can do based on their roles and responsibilities. With multi-factor authentication (MFA) and single sign-on (SSO) features, IAM not only enhances security but also improves the user experience by simplifying the login process.
By implementing IAM solutions, businesses can minimize the risk of data breaches due to compromised credentials, one of the leading causes of cyberattacks. MFA ensures that even if a password is stolen, the attacker will not be able to access critical systems, significantly reducing the likelihood of a costly breach.
The long-term financial benefits of UEM and IAM
Reduced breach and recovery costs
As previously discussed, data breaches can be incredibly costly. By proactively implementing UEM and IAM, businesses significantly reduce the likelihood of a breach and the subsequent recovery costs. Regular device management through UEM ensures that endpoints are consistently updated and patched, while IAM enforces strict access controls that limit potential attack vectors. This proactive approach minimizes the chances of a successful cyberattack, ultimately saving businesses millions of dollars in breach-related expenses.
Improved efficiency and productivity
Both UEM and IAM solutions improve efficiency across the organization. With UEM, businesses can automate routine tasks such as software updates, patching, and device management, reducing the burden on IT teams. IAM streamlines access management by providing employees with easy access to the tools they need, while ensuring that security protocols are met. This reduces the time spent on managing passwords and access requests, allowing employees to focus on their core tasks.
The cumulative effect of these improvements leads to greater productivity and reduced operational overhead, ultimately resulting in cost savings.
Regulatory compliance and avoiding fines
Regulatory compliance is another significant cost factor for businesses, especially those in industries like healthcare, finance, and retail. UEM and IAM solutions help businesses maintain compliance with industry standards like GDPR, HIPAA, and PCI DSS by ensuring that data is secured, access is monitored, and sensitive information is protected.
By investing in UEM and IAM, businesses not only avoid fines but also reduce the risk of legal actions that can arise from non-compliance. These solutions streamline compliance reporting and provide the necessary audit trails, making it easier to meet regulatory requirements and avoid costly penalties.
The true cost of security negligence
The cumulative effect of security gaps
It’s easy to overlook small security gaps over time, but these gaps can accumulate into significant financial losses. The lack of effective endpoint management or poor access controls might seem like a minor oversight, but when left unchecked, they become major vulnerabilities that cybercriminals can exploit. Each breach, each time-sensitive data is exposed, compounds the risk of additional incidents.
The cumulative effect of these gaps can lead to uncontrolled costs: higher insurance premiums, increased IT support costs, damage to brand reputation, and more. Investing in UEM and IAM solutions now helps prevent these cumulative costs from spiraling out of control.
Viewing cybersecurity as a long-term investment
Although UEM and IAM solutions may require a significant upfront investment, they should be seen as long-term investments in your business’s financial health. The savings and risk reduction make this investment worthwhile.
Instead of seeing cybersecurity tools as a cost center, businesses should recognize them as integral parts of their overall financial strategy.
By investing in UEM and IAM, businesses create a cyber-resilient infrastructure that helps them grow, adapt, and scale securely without worrying about the financial devastation of a cyberattack.
With solutions like OneIdP, businesses can streamline identity management and access control, ensuring seamless and secure access across platforms, and further strengthening their cybersecurity posture. OneIdP’s UEM-backed IAM solution simplifies user authentication while maintaining robust security, empowering businesses to focus on scale and optimization.
Quantifying the ROI of UEM and IAM
For businesses considering the financial implications of UEM and IAM solutions, it’s important to understand the ROI. The cost of a breach can be quantified in terms of recovery, downtime, reputational damage, and fines. By preventing even one data breach, a business can recoup the entire investment in UEM and IAM solutions.
ROI can be measured not only by direct financial savings but also by the value of maintaining a strong brand reputation, operational continuity, and customer trust.
Conclusion
The growing threat of cyberattacks and the increasing complexity of managing a secure environment make UEM and IAM solutions not just essential but cost-saving investments.
By preventing breaches, reducing downtime, ensuring compliance, and improving operational efficiency, UEM and IAM help businesses safeguard their bottom line.
Ignoring these tools can lead to hidden and escalating costs that may ultimately be more damaging than the cost of implementation.
View UEM and IAM as long-term investments in your organization’s cyber resilience, and take the proactive steps necessary to secure your future. Ready to strengthen your security posture? Discover how OneIdP’s UEM-backed IAM solution can protect your business and drive growth—connect with our sales experts now.
