TL;DR
MDR is a managed service, SOC-as-a-Service is an operational model, and XDR is the technology underneath both. Most vendors only sell you one.
enhanced.io is a channel-only Open XDR SOCaaS built exclusively for MSPs, with 400+ integrations across endpoint, network, cloud, identity and IoT/OT.
The fastest-growing segment in 2026 is managed XDR, where a managed service runs on an open telemetry platform instead of a single vendor's stack.
Endpoint-only MDR misses IoT, OT, east-west traffic and cloud misconfigurations. Those are the surfaces attackers actually use.
Pick MDR if you have no analysts. Pick an open XDR platform if you have analysts but no visibility. Pick SOCaaS with open XDR underneath if you want to build and resell a security practice.
I've sat through enough vendor pitches to know the problem isn't a lack of options. It's that MDR, SOC-as-a-Service and XDR get used interchangeably in marketing when they are three different things. Buy the wrong one and you either overpay for coverage you can't run, or you leave clients exposed exactly where attackers go first.
The MDR market crossed $5 billion in 2026 and is on track to nearly triple by 2031, according to MarketsandMarkets. That growth is your opportunity. If you can't deliver managed security, a competitor will.
Here's the distinction I use with every partner I talk to. XDR is a technology platform. MDR is a managed service. SOC-as-a-Service is an operational model. The best setups combine all three. Most vendors only sell you one and let you assume it covers the rest.
enhanced.io is a channel-only Open XDR SOCaaS built exclusively for MSPs, with 400+ integrations across endpoint, network, cloud, identity and IoT/OT. Everything in this guide gets judged against the same lens: multi-tenancy, integration flexibility, coverage breadth, and whether the model scales without you hiring more analysts every time you sign a client.
What this guide covers
The real difference between MDR, SOC platforms and XDR, and why it changes your margin structure
Ranked lists across all three categories, with an honest read on where each one fits
Comparison tables so you can see what each model covers and what it misses
A decision framework for choosing the right architecture for your client base
What MDR, SOC platform and XDR actually mean
Most bad buying decisions start with vendors blurring these three categories in their own favor. Here's what each one actually is.
| Category | What It Is | Who Operates It | What It Fixes | What It Misses |
|---|---|---|---|---|
| XDR | Technology platform correlating telemetry across endpoint, identity, cloud, email and network | Your team or a managed provider | Endpoint-only blind spots, fragmented alert views | Requires internal analysts to act on findings |
| MDR | Managed service: technology plus a 24/7 analyst team that investigates and responds | External provider | Staffing gaps, slow response, no threat hunting | Coverage often endpoint-heavy; IoT, OT and east-west traffic frequently excluded |
| SOC-as-a-Service | Fully outsourced security operations: monitoring, SIEM management, threat intelligence, compliance reporting | External provider (advisory model) | 24/7 coverage gaps, SIEM burden, compliance documentation | Provider advises; your team still executes remediation |
Rapid7 explains it well: XDR is a platform, MDR is a service that operationalizes XDR data, and SOC-as-a-Service sits above both as the operational wrapper around whatever stack you run.
Why this matters for your business model
The delivery model sets your margin structure, full stop. An XDR-only platform means you staff analysts yourself. Pure MDR can lock you into one vendor's telemetry. SOC-as-a-Service with an open XDR foundation underneath lets you keep your existing tools, add managed coverage on top, and resell the outcome without rebuilding your stack.
The fastest-growing segment in 2026 is managed XDR (MXDR), which combines XDR's multi-domain telemetry with MDR's managed service model. Mordor Intelligence projects MXDR to grow at 27.61% CAGR through 2031, nearly six points faster than the overall MDR market. That's the direction things are moving, and it's reflected in every ranking below.
Top MDR services for MSPs in 2026
I ranked these on 5 things that actually matter to you: does the provider act or just alert, how much of the attack surface they cover, whether the architecture is MSP-native (multi-tenancy, PSA/RMM integration), deployment flexibility, and whether you can resell it.
#1: enhanced.io, open XDR and SOC-as-a-Service for MSPs
Best for: MSPs and MSSPs that need full-surface coverage across IoT, OT, cloud, identity and east-west traffic without ripping out their existing toolstack.
I built enhanced.io exclusively for the channel. No direct sales to end customers, ever. That's not a marketing line, it's architecture. Every partner gets a named, CISSP-certified Fractional Security Director who works openly alongside your team, not a ticketing queue with your name on it.
What makes it different:
400+ integrations with the tools you already run, so you bring your own stack instead of replacing it
Coverage across non-agent surfaces: IoT, OT, cloud workloads, identity and east-west traffic that traditional MDR vendors miss entirely
Flexible delivery: full 24/7 SOC, platform-only, or blended co-managed
Compliance reporting mapped to CMMC, NIS2, DORA and Essential Eight
Published response SLAs by severity: 30 minutes on Critical, 1 hour on High, 4 hours on Medium, 24 hours on Low, from a 24x7x365 SOC
Climbed to #88 in MSSP Alert's 2025 Top 250 MSSPs, up 18 places from 2024
The gap most MDR vendors leave is non-endpoint visibility. I broke it down in What EDR and MDR cannot see: endpoint-centric services miss lateral movement, IoT entry points and cloud misconfigurations, which is where most modern breaches actually happen.
If your clients run OT environments, cloud workloads or complex identity infrastructure, endpoint-first MDR leaves gaps attackers actively target.
#2: CrowdStrike Falcon Complete, enterprise-grade managed EDR/XDR
Best for: Security-mature MSPs serving mid-market to enterprise clients already standardized on CrowdStrike Falcon.
Falcon Complete is the managed layer on top of the Falcon platform. It delivers 24/7 SOC operations with direct containment authority, meaning analysts isolate endpoints without waiting on your approval. The threat intelligence is genuinely strong, and AI-driven detection keeps false positives down.
Here's the catch. Falcon Complete works best when clients already live in the CrowdStrike ecosystem. It's platform-native MDR, so the economics get worse fast on mixed stacks. Multi-tenancy exists, but the platform was built for enterprise buyers, not channel-first delivery.
Pricing: Custom, per-endpoint annual subscription. Falcon Enterprise alone starts at $184.99 per device per year, before you add the managed layer.
#3: Secureworks Taegis MDR, MXDR with strong threat intelligence
Best for: Mid-market organizations and MSSPs wanting a mature MDR with a proven XDR platform underneath.
Secureworks has run managed security services since 1999. The Taegis XDR platform underpins the MDR offering, correlating telemetry across endpoint, network, cloud and identity. Its Counter Threat Unit contributes proprietary threat intelligence that feeds detection logic in close to real time.
Secureworks does offer an MSP partner program, but the platform isn't as channel-native as purpose-built MSP solutions. It fits best as a co-managed option for MSSPs serving mid-market accounts with compliance requirements.
#4: Rapid7 MDR, AI-driven response for larger environments
Best for: Larger MSP clients (300+ assets) who want AI-assisted triage on a strong SIEM/XDR foundation.
Rapid7 MDR runs on the InsightIDR SIEM/XDR platform, pairing automated detection with human analyst escalation. You get 24/7 SOC coverage, threat hunting and incident response. Pricing starts around $17 per asset per month with a 300-asset minimum, which prices out most SMB clients but works for mid-market and enterprise accounts.
Pricing: From approximately $17 per asset per month, 300-asset minimum.
MDR services: at-a-glance comparison
| Provider | MDR Type | SOC Included | Multi-Tenancy | MSP Native | Coverage Breadth |
|---|---|---|---|---|---|
| enhanced.io | Open XDR + SOCaaS | Yes, 24/7 | Yes | Yes (channel-only) | Endpoint, network, IoT, OT, cloud, identity |
| CrowdStrike Falcon Complete | Platform-native MDR | Yes, 24/7 | Yes | Partial | Endpoint-first, modular expansion |
| Secureworks Taegis | MXDR | Yes, 24/7 | Partial | Partial | Endpoint, network, cloud, identity |
| Rapid7 MDR | MDR + SIEM/XDR | Yes, 24/7 | Limited | No | Endpoint, cloud, identity |
Top SOC platforms for MSPs in 2026
SOC platforms get judged differently. The question isn't just "does it detect threats," it's "does it give you the operational infrastructure to run a security practice at scale." That means SIEM management, vulnerability management, compliance reporting, and consistent delivery across dozens of clients without hiring proportionally.
#1: enhanced.io SOC-as-a-Service, channel-built SOC operations
Best for: MSPs launching or scaling a security practice without building an internal SOC from scratch.
I built enhanced.io's SOC-as-a-Service model for the channel from day one. Instead of selling you a platform and leaving you to staff it, we provide the full operational layer: 24/7 analyst coverage, threat hunting, vulnerability management and compliance reporting.
Most of our engagements aren't white-labeled. Your named Fractional Security Director works openly alongside your team, joins client calls when you want that support, and your clients know who's behind the coverage. That's a deliberate choice, not a limitation. It's what lets the FSD actually build a relationship with your team instead of hiding behind your logo.
What separates this from traditional SOCaaS providers is the Open XDR architecture underneath. Most SOCaaS platforms make you migrate clients onto their preferred toolstack. enhanced.io ingests telemetry from 400+ existing tools, so you skip the rip-and-replace cycle that kills margins and drives client churn.
Compliance frameworks covered:
CMMC (Cybersecurity Maturity Model Certification)
NIS2 (EU Network and Information Security Directive)
DORA (Digital Operational Resilience Act)
Essential Eight (Australian Signals Directorate framework)
#2: Microsoft Sentinel, cloud-native SIEM/SOC for Microsoft-heavy environments
Best for: MSPs whose clients live in Microsoft 365 and Azure, with internal analysts to run the platform.
Microsoft Sentinel is a cloud-native SIEM and SOAR platform correlating signals across Microsoft 365, Entra ID, Defender products and third-party connectors. If your clients are standardized on Microsoft, Sentinel gives you strong native correlation at a consumption-based price that can work well at scale.
Here's the caveat that gets glossed over. Sentinel is a platform, not a managed service. You need your own analysts to triage, investigate and respond. Without that, Sentinel generates more alert volume than most MSP teams can handle. It's a strong technology layer inside a managed SOC. It is not a SOC by itself.
Pricing: Consumption-based, approximately $2.46 per GB ingested. Commitment Tier pricing is available for predictable volumes.
#3: Palo Alto Cortex XSIAM, AI-driven SOC platform for enterprise MSSPs
Best for: MSSPs serving enterprise clients who need a unified SOC platform with AI-driven automation.
Cortex XSIAM pulls SIEM, SOAR, endpoint detection and threat intelligence into one platform. Its AI-driven alert correlation and automated response playbooks can cut mean time to respond significantly in high-volume environments.
For most MSPs, Cortex XSIAM is enterprise-grade in cost as well as capability. It suits MSSPs operating at scale with dedicated security engineering teams who can tune the platform and build automation. Smaller MSPs will find the overhead and pricing hard to justify against an SMB portfolio.
SOC platform comparison
| Platform | Managed or Self-Operated | SIEM Included | Compliance Reporting | MSP Suitability | Best Client Size |
|---|---|---|---|---|---|
| enhanced.io SOCaaS | Fully managed | Yes (via Open XDR) | Yes (CMMC, NIS2, DORA, E8) | Excellent | SMB to mid-market |
| Microsoft Sentinel | Self-operated | Yes | Partial | Moderate | Mid-market to enterprise |
| Palo Alto Cortex XSIAM | Self-operated (enterprise) | Yes | Yes | Low (enterprise-only) | Enterprise |
Top XDR solutions for MSPs in 2026
I ranked these on telemetry breadth, correlation quality, whether the integration model is open or closed, and how well they support multi-tenant MSP deployments. The question that matters most: is the XDR open, meaning it ingests your existing tools, or closed, meaning you buy into the vendor's full stack?
A closed or native XDR platform gives you the deepest integration inside its own product family, but it creates lock-in and forces rip-and-replace migrations. An open XDR ingests telemetry from any tool and protects the investment you've already made. For MSPs managing mixed client environments, open XDR is almost always the right call. See Open XDR for multi-stack MSPs for the architecture breakdown.
#1: enhanced.io Open XDR, stack-agnostic visibility for MSPs
Best for: MSPs managing clients with different toolstacks who need one view without forcing standardization.
Our Open XDR platform correlates telemetry across endpoint, network, cloud, identity, IoT and OT, regardless of whose tools are already installed. With 400+ integrations, it's one of the broadest integration ecosystems built for MSPs. It also covers what traditional XDR platforms miss entirely: east-west traffic, non-agent IoT devices and OT environments.
That matters because lateral movement between internal systems is one of the most common and damaging attack patterns there is, and it's invisible to endpoint-only detection.
#2: SentinelOne Singularity, AI-native XDR with strong endpoint foundation
Best for: MSPs wanting a high-performance endpoint-first XDR with strong AI detection and expanding multi-domain coverage.
SentinelOne Singularity is rated 4.7 out of 5 on G2 and consistently ranks among the top XDR platforms for detection accuracy. Its AI-native architecture delivers autonomous threat response at the endpoint, with expanding coverage into cloud, identity and network through Singularity modules.
There's an MSP/MSSP tier with multi-tenancy support, and the Vigilance add-on layers on 24/7 analyst coverage if you want a managed service on top. The limitation: Singularity is still primarily endpoint-centric. Its non-endpoint coverage keeps improving, but it isn't as deep as purpose-built open XDR platforms.
Pricing: Singularity Core from $69.99 per endpoint per year.
#3: Microsoft Defender XDR, native XDR for Microsoft-standardized environments
Best for: MSPs whose clients run fully on Microsoft 365, Azure and Entra ID with existing licensing.
Defender XDR correlates strongly across Microsoft's own product family: Defender for Endpoint, Defender for Identity, Defender for Office 365 and Defender for Cloud Apps. If your clients already live in that ecosystem, the integration depth is unmatched and the incremental cost is often minimal given existing licensing.
The limitation is the same one every native XDR platform has. It works best inside its own ecosystem. Clients running non-Microsoft tools, or with meaningful OT or IoT infrastructure, will hit real coverage gaps. You'll also need your own analysts to act on what it finds.
#4: Cisco XDR, vendor-neutral cross-domain coverage
Best for: Enterprise-focused MSSPs needing strong network telemetry and a genuinely open integration model.
Cisco XDR leads with network visibility, which is a real differentiator since most XDR platforms are endpoint-first. Its open integration model supports third-party ingestion, and it scores 4.3 out of 5 on G2 for usability. For MSSPs serving enterprise clients with complex networks, Cisco's network-native detection is a real advantage.
The trade-off: Cisco XDR is priced for enterprise and needs experienced security engineers to run it. It's not a fit for MSPs serving SMB clients.
XDR solutions: feature comparison
| Platform | Architecture | Endpoint | Network | Cloud | Identity | IoT/OT | MSP Multi-Tenancy |
|---|---|---|---|---|---|---|---|
| enhanced.io | Open XDR | Open | Yes | Yes | Yes | Yes | Yes |
| SentinelOne Singularity | Native (AI-first) | Yes (deep) | Partial | Yes | Yes | Limited | Yes |
| Microsoft Defender XDR | Native (Microsoft) | Yes | Partial | Yes (Azure) | Yes | No | Partial |
| Cisco XDR | Open | Yes | Yes (deep) | Yes | Yes | Limited | Limited |
How to choose: MDR vs. SOC platform vs. XDR
The right answer comes down to 3 things: your current internal security capability, your client profile, and what you actually want your business model to look like. Here's the framework I use with partners.
| If Your Situation Is... | The Right Model Is... | Why |
|---|---|---|
| You have no internal security analysts and need 24/7 coverage | MDR or SOCaaS | You're buying the people, not just the technology |
| You have analysts but lack visibility across the full attack surface | Open XDR platform | You need telemetry breadth, not more headcount |
| You want to build a security practice and resell it to clients | SOCaaS with open XDR underneath | You need the full operational stack plus delivery flexibility |
| Your clients are all Microsoft-standardized | Microsoft Defender XDR + managed layer | Native integration outweighs breadth for homogeneous environments |
| Your clients have OT, IoT or complex multi-cloud environments | Open XDR + SOCaaS | Endpoint-first solutions leave critical surfaces uncovered |
| You're evaluating compliance-driven clients (CMMC, NIS2, DORA) | SOCaaS with compliance reporting | Compliance mapping needs operational context, not just detection |
The trap most MSPs fall into
The most common mistake I see: buying an endpoint-first MDR and assuming it covers the full environment. It doesn't. NIST's guidance on cybersecurity frameworks is clear that effective security operations need visibility across the full attack surface, not just managed devices.
Modern breaches routinely exploit:
IoT devices that can't run agents: cameras, building controls, medical equipment
East-west traffic between internal systems, where lateral movement happens after the initial compromise
Cloud misconfigurations in AWS, Azure or GCP that endpoint telemetry never sees
Identity-based attacks that bypass endpoint controls entirely
An MDR that only sees endpoints misses all 4. I broke down exactly where these blind spots occur in What EDR and MDR cannot see and what it actually takes to close them.
The MSP business model question
Beyond the security outcome, the delivery model hits your P&L directly. A platform you operate yourself needs analyst headcount that scales linearly with client count. A managed SOCaaS model scales without that proportional headcount growth. That's the real reason gross-margin predictability keeps coming up as a reason MSPs move to SOCaaS.
I go deeper on the actual math in The MSP profitability math behind SOCaaS.
Key questions to ask any MDR, SOC or XDR vendor
Most vendor conversations start with features. The ones that matter start with operational reality. Get clear answers to these before you sign anything.
On coverage
What surfaces do you monitor beyond endpoints? Ask specifically about IoT, OT, east-west traffic and cloud workloads. A vague answer means endpoint-only.
What happens when a threat is detected on a non-agent device? The response workflow tells you whether non-endpoint coverage is real or marketing copy.
How do you handle multi-cloud environments? AWS, Azure and GCP have different telemetry models. A platform that only monitors one natively has gaps.
On the MSP delivery model
Is the platform built for multi-tenancy from the ground up, or adapted for it? The difference shows up in your operational efficiency at scale.
Can I deliver the service under my own brand? Critical if you're building a security practice.
What does onboarding look like for a new client? A good answer is measured in days. enhanced.io onboarding typically runs 30 to 45 days, scoped to what's being onboarded, and you drive the pace by how fast you supply information.
On response authority
When a threat is confirmed, who acts and how fast? There's a real difference between a provider that alerts your team and one that isolates the compromised system immediately.
What's your response SLA, and what does it actually cover? Detection, containment, notification and remediation are 4 different clocks, and a headline number that doesn't say which one is telling you very little. We publish ours in full: 30 minutes initial response on a Critical alert, 1 hour on High, 4 hours on Medium, 24 hours on Low, from a 24x7x365 SOC. See our SLAs, in full, and I wrote about the industry-wide problem with vague headline claims in MDR response time SLA: what 15 minutes actually means. Ask any vendor, including us, to show you the scope behind the number before you repeat it to a client.
On integration
Do I need to replace my existing tools to use your platform? A "yes," or a long list of prerequisites, is a red flag if you've already got an established client toolstack.
How many integrations do you support, and how current is that list? 400+ active integrations is the benchmark I'd hold anyone to. Below 100 means limited stack flexibility.
The bottom line
The MDR market is growing at over 20% annually because the security operations gap is real and it's widening. MSPs that close that gap for their clients build high-margin, recurring revenue. The ones that don't will watch clients move to providers that can.
Every ranking in this guide comes back to one principle: coverage breadth and delivery model fit matter more than brand recognition. An enterprise-grade platform that needs internal analysts to run isn't a solution for most MSPs. An endpoint-only MDR isn't a solution for clients with OT infrastructure or cloud workloads.
The architecture that consistently wins for MSPs is open XDR with a managed SOC layer on top, delivered by a provider built for the channel. That combination gets you full-surface visibility, 24/7 human response, compliance reporting, and the ability to scale without hiring an analyst for every client you sign.
If you want to see what a channel-built security practice actually looks like, start with Best SOC-as-a-Service for MSPs, or book time with Hannah to talk through your specific stack.
About enhanced.io
enhanced.io is a channel-only Open XDR SOCaaS built exclusively for MSPs, with 400+ integrations across endpoint, network, cloud, identity and IoT/OT. Every partner gets a named, CISSP-certified Fractional Security Director working openly alongside their team, backed by a 24/7 SOC. enhanced.io never sells direct to end clients. Book a partnership conversation with Hannah Lloyd.
What's the difference between MDR, SOC-as-a-Service and XDR?
XDR is a technology platform that correlates telemetry across endpoint, network, cloud and identity. MDR is a managed service: the technology plus a 24/7 analyst team that investigates and responds. SOC-as-a-Service is the fully outsourced operational model, covering monitoring, SIEM management and compliance reporting on top of either.
Is XDR the same thing as MDR?
No. XDR is the platform. MDR is the managed service that can run on top of an XDR platform, or on top of something narrower. A vendor can sell you XDR without ever staffing a SOC to operate it for you.
What's the difference between open XDR and native XDR?
Native XDR only correlates telemetry from that vendor's own product family, which gives you deep integration but locks you into their stack. Open XDR ingests telemetry from any tool, so you keep the tools your clients already run instead of a rip-and-replace migration.
Can MSPs deliver SOC-as-a-Service under their own brand?
Most enhanced.io engagements aren't white-labeled. Your named Fractional Security Director works openly alongside your team, and your clients know who's behind their coverage from the start. That's a deliberate design choice, not a gap in the product.
How long does onboarding take for a new SOCaaS client?
It depends on what's being onboarded, typically 30 to 45 days. You drive the pace by how fast you supply information through the onboarding forms. Some environments need firewall reconfiguration or a physical sensor where no virtualization exists.
Do MSPs need to replace their existing security tools to add SOCaaS coverage?
No, not with an open XDR platform underneath. enhanced.io ingests telemetry from 400+ existing tools, so you keep your clients' EDR, firewalls and cloud platforms in place and add the coverage layer on top.
What should MSPs ask about response SLAs before signing?
Ask what the number covers. Detection, containment, notification and remediation are 4 different clocks, and vendors rarely specify which one their headline figure measures. enhanced.io publishes response targets by severity, from 30 minutes on Critical down to 24 hours on Low, written into every partner agreement. Get the same in writing from any vendor before you repeat a number to a client.
