Many MSPs and MSSPs use managed detection and response (MDR) solutions to augment their threat-hunting and incident-response capabilities. However, they have realized the limitations of MDR. It typically uses multiple tools and relies on human expertise to connect the dots and initiate responses. Yet, the proliferation of security platforms and labor shortages make it increasingly challenging to cover all the bases.

As such, more MSPs turn to extended detection and response (XDR) platforms — you may consider them a broader and more automated version of MDR — to address the challenges. But does it mean you should completely replace MDR with XDR? Or should you use both to accommodate client needs? Here’s where the trend is heading and how to position your MSP for future growth.

MDR vs XDR: What are the differences?

MDR is a service-based solution where a third-party provider monitors and manages endpoint and network devices and cloud services. It typically uses disparate security technologies and requires expert management via a Security Operations Center (SOC) to conduct threat hunting, provide incident response, and offer remediation recommendations.

On the other hand, XDR involves broader coverage and integrates multiple security layers. It connects various cybersecurity tools to provide a single-pane-of-glass view for a holistic approach. Many XDR platforms use advanced AI technologies to analyze vast amounts of data collected across an infrastructure to identify threats and initiate prompt automated responses without human interventions to minimize delays.

XDR has gained popularity because it can detect threats across various layers of an IT infrastructure to reduce blind spots while providing contextual insights to help security teams prioritize actions. Meanwhile, automation capabilities minimize delays and bottlenecks caused by manual processes. In fact, 95% of security decision-makers favor replacing discrete threat detection and incident response tools with a comprehensive XDR solution.

XDR will likely win out in the long-term

Thanks to advanced machine learning and AI technologies, XDR platforms can automatically detect and respond to threats without manual intervention — reducing the reliance on human analysts and the potential errors and delays. It’s more scalable and cost-effective over the long run, especially when MPSs and MSSPs face challenges in hiring the right talent in the tight labor market.

In particular, an open XDR like Stellar Cyber offers cross-vector visibility across multiple security layers. It allows organizations to manage various tools efficiently via a centralized dashboard for a unified, context-rich view of threats to ensure effective responses. Additionally, automation identifies and reacts to threats to support faster response than MDR, which relies on human analysts to review and investigate incidents.

When you implement XDR as part of a SOC as a Service (SOCaaS) package like one from enhanced.io, you can lower your upfront investment through the subscription model while gaining access to security experts to configure your platform correctly, interpret the output, and guide you to take the appropriate remediation actions.

Should you drop MDR like a hot potato?

Not so fast. While XDR will gain dominance, most MSPs will benefit from using XDR and MDR together to get the best of both worlds for the foreseeable future.

MDR offers hands-on threat hunting, incident response, and personalized guidance. Human oversights ensure the most appropriate actions are taken based on context and specific client requirements, especially when handling sophisticated and complex attacks involving various aspects of an IT infrastructure.

MDR solutions complement XDR’s automation capabilities to help you focus your resources strategically to support a layered approach to security and deliver comprehensive protection.

When to combine MDR and XDR

You may combine MDR with XDR for clients with multi-layered environments or complex regulatory requirements. XDR provides a holistic approach that reduces fragmentation and integrates different security technologies, while MDR offers hands-on expertise when necessary.

While XDR’s automation features are ideal for handling high-volume, less complex threats, MDR complements these capabilities to address advanced persistent threats or targeted attacks with expert human oversight. Moreover, MDR’s managed services help lower your employees’ workload and provide access to specialized security expertise, so you don’t have to hire a large security team.

Today, XDR and MDR should co-exist in most MSPs’ security toolkits. XDR automates routine threat detection and response processes, while MDR fills gaps where human expertise and deeper investigation are required. As XDR’s AI and automation technology continues to improve, it will handle an increasing share of the workload. However, the demand for expert-driven responses to sophisticated or emerging threats will stay.

MDR offers flexibility and helps you bridge the gap as you fine-tune an XDR solution’s AI and automation technologies to meet your client requirements and workflows. While efficient and broad in scope, XDR may not always offer the personalized attention MDR provides. You may continue supplementing XDR with MDR for clients with complex regulatory or operational requirements.

Prepare for the shift toward XDR

XDR provides a unified approach, visibility across tech stacks, and improved analytics and automation — paving the way for the future of threat detection and response where cybersecurity requirements continue to scale in complexity and volume. It also helps address labor shortages and skill gaps many MSPs face.

When implementing an XDR solution, you should consider the costs of handling a vast volume of telemetry and complex integration requirements. Also, some clients may be reluctant to do a rip-and-replace or want to wait out their existing point solution contracts before migrating to an XDR platform.

enhanced.io’s scalable SOCaaS packages include access to Stellar Cyber’s Open XDR solution, helping you simplify the introduction of XDR into your tool stack for a seamless transition. Our expert team will help you configure the software to ensure seamless integration. We also provide 24/7/365 SOC monitoring to augment threat detection and incident response, ensuring prompt and appropriate actions.

Stellar Cyber’s Open XDR is compatible with most point solutions (e.g. EDR, NDR, SOAR) your clients already use, providing you with a single-pane-of-glass view without complicated and costly rip-and-replace. Moreover, our MSP partners can access our sister company RedQor’s cybersecurity staffing solutions to fill skill gaps and augment their teams with the right expertise.

Learn more about our SOCaaS solutions and get in touch to see how we can help you implement a robust Open XDR solution supported by 24/7 monitoring and cybersecurity expertise.