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Companies Are Ditching VPNs to Escape the Hidden “Cybersecurity Tax” in 2025

 

Every business is paying what experts now call a “cybersecurity tax.” You won’t find it as a line on the balance sheet, but it’s embedded in rising insurance premiums (up 15–25% annually), hardware upgrades every few years, and per-user licensing fees that grow with each new hire. Add to that the IT teams juggling multiple VPN systems across departments — and the cost is undeniable.

Then there’s the biggest expense: the average $4.4 million cost of a data breach. Business disruption and customer recovery drive this figure higher, with reputational damage alone averaging $1.47 million. In severe cases, companies have faced damages exceeding a billion dollars.

2025’s Turning Point: Escaping the Cybersecurity Tax

A growing number of companies are breaking free from these hidden costs by replacing legacy VPNs with software-defined mesh networks. When Cloudflare’s major outage hit in June, most of the internet went dark — except for organizations already using decentralized architectures. These companies continued operating seamlessly, having eliminated the single point of failure that traditional VPNs depend on.

According to the Cybersecurity Insiders 2025 VPN Exposure Report, 48% of businesses using VPNs have already suffered breaches. In contrast, alternatives like ZeroTier<
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