Executive Summary: The Future of SME Cybersecurity is Here

The threats we face online have evolved to be more insidious and complex; however, small and medium enterprises (SMEs) have not modernized sufficiently to reduce the risks. They are highly vulnerable due to a lack of advanced technologies, operational resources, and threat response capabilities that large enterprises can afford. SMEs recognize the risk themselves and seek solutions that reduce their risk.

That is why, at NETGEAR, we are laying out a clear path for SMEs to achieve enterprise-grade cybersecurity quickly, smoothly, and affordably. We find that SMEs often rely on one of two inadequate options, both of which are costly and confusing. The first is a bloated, complex, and expensive enterprise solution built for large corporations. The second is a fragmented collection of point solutions. There is often a mix of services from a primary carrier and other third-party vendors that is difficult to manage, leaves wide and obvious security gaps, and demands operational resources they don’t have.

We have made a significant investment based on our belief that every business, regardless of size, deserves access to world-class security, having acquired Exium, a leader in cloud-based cybersecurity. The Exium technology enables our mission to provide the first truly integrated, secure, and affordable networking solution specifically designed for SMEs. Our vision is simple yet powerful: to deliver a unified platform that offers enterprise-grade power with SME-level simplicity and affordability, helping businesses survive and thrive in an increasingly complex digital world.

The Threat is Real: Why SMEs Are Vulnerable

The challenge is clear. Cyberattacks are no longer a problem reserved for enterprises; they pose an existential threat to the backbone of our economy. For office managers, operations directors, and business owners, as well as anyone at an SME who serves as the “accidental IT manager” and lacks a dedicated IT staff, the current security landscape is a source of constant anxiety.

The patchwork of firewalls, VPNs, and separate security software is difficult to manage, expensive to maintain, and often fails to provide the cohesive protection required to defend against sophisticated modern threats. And, astonishingly, only 17% of SMEs have cyber insurance (Cyber Insurance Stats: 64% of businesses unfamiliar with coverage | AdvisorSmith). The vast majority are completely exposed and unprepared for an attack.

The financial and operational fallout is severe. Verifiable data confirms the devastating impact:

● Cyberattacks targeted 61% of all SMBs (source: verizon.com).

● 46% of small and medium-sized business owners surveyed have experienced a cyberattack on their current business. Mastercard. (2025, March 27). Small Business Cybersecurity: Survey Reveals Reasons for Concern. Mastercard (source: mastercard.com).

● 75% of SMBs say they could not continue operating if hit with a ransomware attack. (Main Street overconfidence: Small businesses don’t worry about hacking)

● 46% of all cyber breaches impact businesses with fewer than 1,000 employees. (2021 SMB Data Breach Statistics | Verizon)

Consider a real-world example: Minneapolis Public Schools. In February 2023, the school district was hit by a ransomware attack. A group of hackers encrypted the district’s computer systems and demanded a ransom. When the district refused to pay, the hackers leaked over 300,000 sensitive files belonging to students and staff online, including psychological evaluations, medical records, and disciplinary files. The attack paralyzed operations for months and caused significant distress and fear of identity theft among students and their families.

A modern SASE platform would have prevented this attack and many others. In fact, NETGEAR can prevent this type of attack now as a result of its acquisition of Exium.

This attack relied on “lateral movement”, which is the ability of a threat to move freely across the network once inside. A modern SASE platform’s core principle is Zero Trust Network Access (ZTNA), which continuously verifies and limits access for every user and device, even those already on the network. If the ransomware file had been downloaded, the SASE platform’s advanced threat detection and Intrusion Prevention Systems (IPS) would have identified and blocked the malicious payload before it could execute. Furthermore, SASE’s integrated Data Loss Prevention (DLP) capabilities would have detected the massive transfer of sensitive data leaving the network and automatically would have blocked it, preventing the data from being exfiltrated and leaked online.

Many other data and examples like these confirm there is an underserved market, one that NETGEAR is uniquely positioned to serve.

In fact, attacks on edge devices and virtual private networks (VPNs) are becoming increasingly frequent. Exploitation of vulnerabilities in these devices has seen an almost eight-fold increase, from 3% last year to 22% this year (source: verizon.com).

Despite organizations’ efforts to patch edge device vulnerabilities, only about 54% of them were fully remediated throughout the year, with the median time to accomplish this being 32 days.

Our Vision for the Future: A Modern Path to SASE

The reality is that most SMEs today exist in a vulnerable “Transitional” state, relying on fragmented and outdated security approaches. The path forward is through a modern, unified architecture. The future of networking and security is SASE (Secure Access Service Edge), which combines networking and security functions into a single, cloud-delivered service. With the integration of Exium’s technology, NETGEAR Enterprise is providing a clear path for businesses to evolve from a fragmented, insecure state to a fully modern, integrated security posture.

Our vision is to deliver a unified SASE and XDR (Extended Detection and Response) platform that is Everything You Need, Nothing You Don’t. This is a right-sized solution built from the ground up to eliminate complexity and unnecessary features. Security, connectivity, and management are all delivered through a single, intuitive platform that is easily deployed, managed, and scaled.

A Phased Roadmap to Integration and Value

We are committed to a clear and transparent roadmap for our customers, partners, and investors.

● Phase 1: Immediate Availability (Today): The Exium platform is available today as a standalone service, offering immediate SASE and XDR benefits. Customers and partners can now begin leveraging this powerful, purpose-built solution to secure their businesses.

● Phase 2: Core Integration & New Products (Q1 2026): This is where the true power of the acquisition is realized. We will begin integrating the Exium Cyber Gateway software into specific NETGEAR hardware, starting with the new PR60X. Most importantly, all security services will be centrally managed through the existing NETGEAR Insight cloud platform. This provides a single-pane-of-glass management experience that is familiar to our channel partners, empowering them to onboard and manage their clients’ security easily.

● Phase 3: The Full Vision (2027+): Looking to the future, we envision a portfolio where every NETGEAR business product has security built in from the ground up. This will create a fully converged, cloud-managed ecosystem where security is not an add-on but a seamless and fundamental component of the network.

The Value: Why This Matters SME, Partner, and Analyst Communities

This strategic move is a win for SMEs, partners, and the industry. Expanding enterprise-class cybersecurity and making it available to SMEs, regardless of their stage in the journey to a modern cybersecurity framework, is a bold and purposeful step that positions NETGEAR Enterprise at the forefront of the high-growth SASE market. According to Gartner, the SASE market is expected to grow at a 29% CAGR, reaching over $25 billion by 2027 as organizations increasingly prioritize cloud-based networking and security solutions. With the integration of Exium’s platform and expertise, NETGEAR for Business will develop an all-in-one, easy-to-use solution that encompasses wired and wireless networking, as well as firewall and integrated security (source: broadfield.com).

By embedding security at the core of our business, we are creating a long-term competitive advantage and expanding our total addressable market.

● For Our Customers (SMEs): The value is tangible. You get the peace of mind that comes with enterprise-grade protection, the simplicity of a single, unified platform, and the affordability you need to protect your business without overspending. Our solution is purpose-built to eliminate the complexity and cost of managing multiple disparate solutions, a benefit no single legacy firewall vendor can deliver.

● For Our Partners (MSPs/Resellers): We are putting you in the driver’s seat. This provides a new, high-margin, recurring revenue stream. The simplified management and unique, integrated solution give you a powerful competitive edge to grow your business and build lasting client relationships. Our unified management via the NETGEAR Insight platform reduces operational costs and simplifies onboarding, allowing you to focus on growth.

● For Investors & Analysts: This demonstrates a forward-thinking pivot from a hardware-first company to a solutions-first provider, ensuring long-term competitive advantage and market leadership.

Conclusion: Confidence Through Connection

The acquisition and integration of Exium is more than a transaction; it’s a statement of our direction and our steadfast dedication to our customers. We are building the future of business networking, one secure connection at a time. The era of fragmented, complex security is over for SMEs. The era of confidence, simplicity, and integrated protection is here, and it is powered by NETGEAR.

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