NIS2: A Double-Edged Sword for the IT Sector

Guess post by Francis O’Haire, CTO of DataSolutions, a Climb Company

It is something that everyone is talking about, and the deadline is right around the corner. Of course, it’s the Network and Information Systems Directive 2 (NIS2) and compliance is an absolute must.

But what does it really mean for the IT sector, and how can organisations ensure compliance between now and then? Well, NIS2 is shaking up cybersecurity regulations across the European Union by enforcing rigorous cybersecurity measures, guiding organisations to mitigate cyberattack risks, and establishing robust reporting and response protocols. The directive introduces new requirements in four key areas: risk management, corporate accountability, reporting obligations, and business continuity.

NIS2 also extends its scope beyond typical Critical Infrastructure providers to include, for example, businesses operating as Managed Service Providers (MSPs) or Managed Security Service Providers (MSSPs) delivering services to EU customers. This is a double-edged sword for businesses who must achieve compliance themselves, while supporting their customers in doing the same.

Creating opportunities through compliance

The skills and processes that an IT company will acquire in becoming compliant will be wide-ranging. However, they can be leveraged to help customers navigate their own paths to compliance and strengthen value-add services, thus creating opportunity and potential driving growth for the business.

Reliance on MSPs and MSSPs will undoubtedly intensify as a result of NIS2, particularly among small and mid-sized businesses that lack in-house cybersecurity expertise to manage cybersecurity and compliance effectively. These providers will be responsible for delivering IT and security services as well as compliance reporting, making them indispensable in the ever-changing fight against cyber threats.

Navigating NIS2 nuances

Of course, this increased reliance comes with heightened risk. Given their extensive access to customer IT infrastructures, MSSPs are prime targets for cyberattacks. A single breach within an MSSP can have cascading effects, leading to multiple customer breaches. This underscores the critical importance of MSSPs adhering to NIS2 requirements and maintaining trust with their customers.

The NIS2 directive is therefore a mixed bag for IT channel partners. On one hand, the stringent requirements can be seen as a burden, requiring significant investments in cybersecurity measures and compliance processes. On the other hand, these same requirements create a unique opportunity for channel partners to enhance their offering and stand out in the market.

Balancing burden with business success

Getting the balance between burden and business success in the age of NIS2 will be crucial. MSPs and MSSPs will have to overcome the challenges to capitalise on the opportunities, they will have to uphold requirements in order to deliver enhancements, and they will have to be compliant if they are to innovate.

Navigating the NIS2 landscape will require dedicated support and the right technology working in tandem. For example, readiness assessments will be needed to highlight the areas organisations need to improve. Companies will also need to build a solid compliance foundation and standardise security and management practices. Many will likely benefit from and implement solutions which customise workflows and automate processes.

Despite its challenges, NIS2 introduces a chance for IT companies to enhance their value proposition, create a safer digital ecosystem, revolutionise the cyber security landscape, and drive business success. However, as with many things, the differentiator between those who scrape through and those who thrive will come down to perseverance and – perhaps more importantly in this case – resilience and compliance.

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