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MDR vs XDR: Pros/Cons, 4 Key Differences and How to Choose


November 29, 2024
Last Updated: November 29, 2024
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What Are MDR and XDR? 

Managed detection and response (MDR) and extended detection and response (XDR) are cybersecurity services aimed at detecting and stopping threats. MDR focuses on monitoring, threat hunting, and responding to incidents across endpoints and networks using human expertise and technology. It typically involves a third-party provider that offers 24/7 monitoring and threat intelligence. 

XDR is a technology-only approach that integrates signals and responses across multiple standalone technologies. It offers a unified platform that collects and correlates data from various sources such as endpoints, network traffic, emails, server data, and more to provide a holistic view of an organization’s security posture. Unlike MDR, which takes a human-centric approach to security response, XDR focuses on data integration, improving detection accuracy and response efficiency.

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How Managed Detection and Response (MDR) Works

MDR services combine detection tools with expert analysis. Typically, MDR involves continuous real-time monitoring of systems using technologies that use signature-based and anomaly-based detection methods. These tools generate alerts when potential threats are detected, which are then analyzed by security experts. This human expertise is crucial in assessing the severity of threats and minimizing false positives.

Additionally, MDR services may include proactive threat hunting, where analysts actively seek out potential threats that automated systems might miss. By integrating threat intelligence, MDR providers can offer insights into the latest tactics used by cybercriminals. Incident response is another critical component of MDR, providing a coordinated method to mitigate threats.

Benefits of MDR

MDR improves an organization’s security capabilities without the need for substantial internal investments. By leveraging external expertise and resources, companies can achieve high-level security operations even with limited in-house capabilities. MDR services typically offer cost-effective solutions tailored to the needs of an organization.

MDR allows organizations to focus on core operations by outsourcing the complex and resource-intensive processes of threat detection and incident response. MDR services also offer scalability, allowing organizations to adapt to changing security needs. The automation and analytics incorporated in MDR increase the speed and accuracy of threat detection and response.

Limitations of MDR

MDR’s main drawback is the dependency on the provider’s expertise and tools. This reliance can be risky if the service level or threat intelligence of the provider is insufficient or if they encounter resource constraints. Additionally, MDR’s focus is often limited to endpoint and network monitoring, potentially leaving other areas of an organization vulnerable if not adequately integrated with broader security measures.

There is also the challenge of data privacy and compliance, as MDR involves sharing sensitive information with a third party. Organizations must ensure that providers comply with relevant regulations to avoid potential legal and privacy issues. The effectiveness of MDR can also be impacted by communication lapses between the service provider and the organization.

Related content: Read our guide to MDR solutions

How Extended Detection and Response Works

XDR integrates and analyzes security data across multiple layers—endpoints, networks, servers, email, and more—within an organization. This unification offers cross-layered detection capabilities that improve the identification of complex threats that might be missed when using isolated security solutions. 

XDR solutions provide a single interface for visualization and investigation, simplifying security management and facilitating faster identification of attack patterns through correlation and contextualization of data across different environments. Using data analytics and automation, XDR improves visibility into the IT environment, while security alerts are automatically prioritized based on potential impact.

Benefits of XDR

XDR offers superior threat visibility and detection, integrating data sources for comprehensive insights into an organization’s security landscape. This leads to improved detection rates for sophisticated attacks, as XDR can correlate information across different environments. The consolidated view enables swift threat identification and resolution.

Additionally, XDR simplifies security operations by automating and prioritizing alerts, reducing the workload on security teams and decreasing the likelihood of human error. This efficiency allows teams to allocate more resources to strategic initiatives rather than routine tasks. XDR’s unified platform may be cost-effective if it reduces the need for multiple security tools.

Limitations of XDR

XDR still presents challenges, including the potential complexity of deployment, which might require substantial changes to existing IT and security frameworks. Organizations may need to adapt current processes to align with XDR’s operational models, demanding additional time and resources. Integrating disparate systems into XDR solutions can present interoperability issues.

Additionally, the cost of XDR solutions can be prohibitive for smaller organizations, given the spatial and operational scope that these systems demand. The need for skilled personnel to manage and optimize the use of XDR systems also introduces a dependency on experienced security professionals, who may not be readily available. The breadth of data it handles requires data governance to ensure privacy and compliance.

Tips From the Expert

In my experience, here are tips that can help you better assess and implement MDR or XDR solutions:

  1. Assess MDR and XDR based on incident response maturity: Choose MDR if your team needs external incident response (IR) expertise to handle alerts and provide remediation guidance. Select XDR if you have an established IR process, and want cross-layer visibility to enhance in-house response capabilities.
  2. Use XDR to address alert fatigue by automating alert prioritization: XDR’s integrated approach can reduce alert volume by correlating data across sources, which helps focus attention on high-priority alerts. This is ideal for teams overwhelmed by isolated alerts from multiple tools.
  3. Implement MDR for rapid deployment in resource-limited teams: If you’re looking for a quick boost in detection and response capabilities, MDR is often faster to deploy than XDR, as it leverages the provider’s SOC infrastructure and trained analysts, minimizing setup time.
  4. Consider XDR’s automated playbooks for response consistency: Many XDR platforms offer playbook automation to streamline responses across environments. This is valuable for teams wanting standardized, efficient response workflows across diverse data sources.
  5. Leverage MDR threat hunting for periodic in-depth analysis: While XDR provides continuous data analysis, MDR’s manual threat hunting by security experts can uncover hidden threats missed by automated processes, offering a valuable complementary service.

Eyal Gruner is the Co-Founder and CEO of Cynet. He is also Co-Founder and former CEO of BugSec, Israel’s leading cyber consultancy, and Versafe, acquired by F5 Networks. Gruner began his career at age 15 by hacking into his bank’s ATM to show the weakness of their security and has been recognized in Google’s security Hall of Fame.

Key Differences Between MDR and XDR

Here are some of the main areas of difference between managed and extended detection and response solutions.

1. Coverage and Scope

MDR’s scope generally includes focused detection and response capabilities spanning endpoint and network infrastructure. It leverages human expertise and threat intelligence to manage specific areas while typically requiring integration with existing security tools. MDR suits organizations desiring expert-managed point solutions for end-user devices and networks.

XDR can extend beyond MDR by merging and processing data from across an organization’s environments—creating broader security coverage. This integration results in a singular, correlated view of all potential threat vectors. XDR suits advanced security operations where unified management is essential. 

2. Data Sources and Analytics

MDR typically relies on endpoint and network logs fed into a security operations center (SOC) managed by external experts. Analysts use this data for detecting threats and orchestrating responses. This approach is useful for targeted threat monitoring but can be limited by the range of accessible data. 

XDR uses a wide array of data inputs from other security tools that protect endpoints, networks, applications, and even cloud infrastructures—enabling comprehensive analysis. With its integrated approach, XDR uses advanced analytics powered by AI and machine learning to parse through large volumes of data, improving detection capabilities and reducing false positives. 

3. Management and Expertise

MDR relies heavily on external security teams that manage the detection, investigation, and response activities. These teams, typically part of the service provider’s SOC, work around the clock to analyze threats, respond to incidents, and conduct threat hunting. This managed model lets organizations without a large in-house security team access experienced professionals.

XDR is intended for organizations that may have more mature security operations teams capable of managing a wider range of security events within an integrated platform. XDR solutions often include advanced features for in-house teams to configure and customize threat detection and response workflows, enabling these teams to fine-tune the platform.

4. Integration and Visibility

MDR services typically integrate with existing endpoint and network security tools, focusing on specific points in an organization’s environment. This approach allows for focused, specialized monitoring and response but may leave gaps if additional systems or platforms aren’t covered by the provider. MDR’s visibility can be somewhat siloed, relying on alerts from different tools.

XDR is built with integration as a core function, gathering data across security tools that protect endpoints, networks, cloud resources, and applications. This enables XDR to present a comprehensive view of the organization’s security posture, correlating data from different sources to enhance threat detection accuracy.

Choosing Between MDR and XDR

When deciding between MDR and XDR, organizations should consider factors such as their security needs, IT infrastructure complexity, and available resources.

  1. Organization size and security requirements: For smaller organizations or those with limited security budgets, MDR can be a suitable option. MDR provides effective threat detection and response without requiring a significant investment in infrastructure. XDR is more fitting for large enterprises with complex IT environments, where broader visibility and integration across multiple security layers are required.
  2. Internal security team and resources: MDR is well-suited for organizations with smaller or less specialized security teams, as the service provider handles much of the threat monitoring and response. XDR often requires a more skilled internal team to configure, manage, and interpret data from various sources.
  3. Budget and long-term strategy: MDR services generally have predictable costs, with pricing based on the level of service and number of endpoints. This affordability makes it appropriate for organizations with constrained budgets. XDR can incur higher upfront costs due to its infrastructure and setup requirements, but it may be more cost-effective in the long run for organizations looking to consolidate their security stack.
  4. Scalability and customization needs: If an organization anticipates rapid growth or changing security needs, XDR offers a scalable solution that can adapt by integrating additional data sources and security layers over time. MDR, while scalable, may require additional integrations or supplementary tools if the organization’s environment becomes more complex.

Cynet MDR Services

Effective breach protection must include a combination of prevention and detection technologies along with deep cybersecurity oversight and expertise. The CyOps team ensures Cynet technology is optimized by continuously monitoring your environment and proactively contacting you when further attention is required. CyOps ensures that all appropriate and necessary detection, investigation and response actions are conducted accurately and thoroughly

Whether your organization already has deep cybersecurity expertise and just lacks the time or staff, or whether your organization just doesn’t have the expertise necessary to ensure you’re always protected – CyOps is there to help 24/7. You don’t have to do it alone. CyOps is ready to extend your resources and expertise in the ongoing fight against cybercrime.

And, you receive all of the benefits of CyOps Managed Detection and Response services as part of the Cynet platform – at no additional cost.

Learn more about Cynet MDR services

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