For MSPs, Kaspersky’s U.S. Exit Is A Reminder To Not Ignore Geopolitics

In the current geopolitical environment, it ’makes it incumbent on us to make sure that we’re choosing the right partners,’ one MSP executive tells CRN.

In the current geopolitical environment, the planned exit of Russian cybersecurity vendor Kaspersky from the U.S. market is a reminder of why it’s more important than ever for service providers to “make sure that we’re choosing the right partners,” an MSP executive told CRN.

Kaspersky confirmed Tuesday that it will soon be exiting the U.S. market and ceasing operations in the country. The move comes in the wake of recent U.S. sanctions that would effectively ban the Moscow-based company from sales and distribution of Kaspersky antivirus software in America.

It also comes after a series of federal restrictions placed upon Kaspersky over the years, including the Department of Homeland Security order to remove Kaspersky-branded products from federal IT systems in 2017.

A year later, Congress passed a law banning the use of Kaspersky products by federal agencies. Then in 2022, the Federal Communications Commission added Kaspersky to a list of entities that pose “an unacceptable risk to national security and the security and safety of U.S. persons.”

Without a doubt, the federal government’s approach to Kaspersky has been a major distraction for the vendor for years now, so it’s no big surprise that the company is planning to pull out of the U.S., said Travis Woods, CEO of Fort Point IT, a Novato, Calif.-based MSP. His company was formerly a Kaspersky partner but ended the partnership nearly a decade ago—prior to U.S. government restrictions—as part of switching to a different security vendor.

For clients and the MSPs who serve them, the bottom line is that the location of a cybersecurity vendor’s headquarters is now extremely important, Woods said.

“It makes a difference because in this global environment, there are allies and there are foes. And the U.S. government is being more specific about who the people are that fall into the category of ‘foe,’” he said. “And so that makes it incumbent on us to make sure that we're choosing the right partners.”

At the same time, Kaspersky has been struggling for some time now given the U.S. government restrictions and has not always gone out of its way to address the concerns, Woods said.

For instance, at a past event he attended where Kaspersky presented its technology offerings to MSPs, the company opted to not address the “elephant in the room.” Woods recalled thinking, “we really can't even talk about the efficacy of your product—because the political cloud that hangs over your head is so great.”

Winding Down

In a statement provided to CRN Tuesday, Kaspersky said it will “gradually wind down its U.S. operations and eliminate U.S.-based positions” starting July 20. Layoffs will affect fewer than 50 employees in America, the company said.

Kaspersky said in the statement that it has “carefully examined and evaluated the impact of the U.S. legal requirements and made this sad and difficult decision as business opportunities in the country are no longer viable.”

Kaspersky has denied engaging “in activities which threaten U.S. national security.”

“Neither Kaspersky nor its management team has any ties to any government, and we consider the allegations quoted by the OFAC [Office of Foreign Assets Control] as pure speculation,” the company said.

Kaspersky was founded in Moscow in 1997 and grew into a world leader in antivirus software. All of Kaspersky’s overall sales come through indirect channel and alliance relationships, according to CRN’s 2024 Channel Chiefs.

Kaspersky said it would “continue investing in strategic markets and remain committed to serving its customers and partners and ensuring their protection.”