Unify your security stack & close critical gaps.
Delivering cybersecurity services has become more complex and resource-intensive for MSPs as client environments evolve and more customers prefer to use their existing security stacks.
Siloed security tools offer limited visibility, impeding your ability to gain a holistic view and deliver your services efficiently. Alert overloads lead to SOC fatigue as false positives or low-priority incidents divert the security team’s attention from high-priority tasks. Moreover, manual correlation and investigation slow detection and response times because they can’t keep up with the vast amounts of data generated by various software.
Meanwhile, cybercriminals use advanced tactics, including multi-stage attacks, fileless malware and AI-driven threats, to evade traditional detection methods. MSPs must also contend with complex, multi-cloud environments as organizations support remote workforces and undergo digital transformation.
The good news is that new technologies and techniques are emerging to address these challenges. An Extended Detection and Response (XDR) solution has become the clear winner, with 95% of security decision-makers favoring replacing disparate threat detection and incident response tools with a comprehensive XDR solution.
So, what is XDR, how does it work and how does it differ from security solutions like MDR, EDR, SOAR and SIEM? How can an XDR help you improve your MSP services and what are the key steps to implement an XDR solution in your MSP business? Let’s explore how you can unlock growth with advanced security capabilities.
Data collection and integration.
An XDR platform collects and correlates telemetry data from multiple sources, including endpoints, networks, cloud services, email and applications. It also offers comprehensive context around threats, helping analysts understand the nature of an attack for accurate decision-making.
Advanced threat detection and analysis.
XDR leverages AI, machine learning and behavioral analytics to identify anomalous activities, zero-day attacks and insider threats. The capabilities help reduce false positives and provide security teams with high-fidelity alerts.
Data correlation and incident investigation.
An XDR tool automatically correlates alerts and security signals across multiple layers to provide contextual intelligence and a unified attack timeline. It helps prioritize the most critical threats, reduce alert fatigue and automate root-cause analysis to accelerate response times.
Automated and orchestrated response.
XDR can automatically isolate compromised endpoints to prevent lateral movement, block malicious IP in real time, trigger pre-determined workflows and alert security teams for further action. You may customize responses based on each client’s unique requirements and risk profile.
XDR’s advanced capabilities improve threat detection by providing cross-layer visibility while ensuring prompt incident response via automated detection and remediation. They reduce operational complexity by unifying multiple security tools into a single platform and allow organizations to eliminate redundant security solutions to optimize SOC efficiency and lower operating costs.
As an MSP or MSSP, you probably have implemented various security tools, such as MDR (Managed Detection and Response), EDR (Endpoint Detection and Response), SIEM (Security Information and Event Management) and SOAR (Security Orchestration, Automation and Response). Should you add XDR to the mix?
2: How Does XDR Differ From Other Security Solutions?
XDR’s unique strength lies in enhancing cybersecurity by integrating multiple security layers and software. Instead of replacing individual solutions like EDR, SOAR and SIEM, XDR ties them together to create a unified view of an IT environment while coordinating increasingly complex workflows. Let’s take a closer look:
XDR is a technology solution, whereas MDR is an outsourced service where an external vendor handles detection and response. XDR offers AI-driven automation capabilities, while most MDR providers use human analysts to investigate and respond to alerts — increasing the risks of errors and delays. However, you can get the best of both worlds with Enhanced XDR, which combines AI capabilities with human expertise to fill gaps and fine-tune AI responses.
XDR vs. EDR
XDR monitors and responds to security events across endpoints, networks, the cloud, email and applications, while EDR only handles endpoint security and detects endpoint-based threats. XDR automates threat containment across IT environments, whereas an EDR solution only performs endpoint remediation actions. In short, EDR does not offer the capabilities to orchestrate full-stack security across multiple attack vectors.
XDR vs. SIEM
XDR proactively detects and responds to threats across multiple security layers, using AI to perform real-time detection and automate incident response. In contrast, SIEM primarily aggregates logs and analyzes security events, relying on predefined rules and manual efforts for correlation and response. Unlike most SIEM solutions that require extensive configuration, XDR simplifies security operations with native integrations and AI-driven automation.
XDR vs. SOAR
XDR integrates detection and response, while SOAR only offers security workflow automation capabilities and requires integration with external threat detection sources (e.g. SIEM, EDR). Additionally, most SOAR solutions automate security operations workflows based on predefined playbooks, making them less adaptive to the fast-shifting security landscape. As such, they may be unable to respond promptly to zero-day attacks.
3: How MSPs Can Improve Their Security Services with XDR
Open XDR technology is a game-changer for MSPs and MSSPs, helping them improve SOC efficiency while enhancing flexibility and agility:
AI analytics and automation technologies correlate alerts from disparate tools to provide a holistic view of an incident. Your team doesn’t have to parse through numerous, potentially duplicative notifications and perform repetitive tasks. Instead, they can focus on delivering prompt responses.
Automated workflows eliminate manual processes to improve operational efficiency. Instead of spending hours coordinating multiple applications and reports, your team can focus on providing outstanding services and building customer relationships to improve customer retention and drive revenue.
Advanced integration capabilities allow you to keep using your existing tech stack. You can hit the ground running instead of spending time and resources migrating software and retraining your team. Moreover, clients can “bring their own EDR” — simplifying onboarding to help you win more business.
Unlike some XDR solutions, which require software from specific vendors, open XDR integrates with any security application. Thus, you can avoid the risk of vendor lock-in, which may limit flexibility and cause issues in the future.
Consolidating your security stack means fewer licenses, less employee training and simpler onboarding. The streamlined processes help you save on capital and ongoing costs, boosting long-term profitability.
An XDR solution supports a layered and proactive approach to cybersecurity, helping MSPs monitor complex IT environments and provide incident response to multiple clients simultaneously without hiring additional resources. It also helps consolidate security management for IT and OT environments for improved efficiency. Here are the top use cases:
Advanced threat hunting and investigation
AI-driven analytics, behavioral detection and contextual intelligence enable security teams to identify hidden threats. XDR also correlates data across endpoints, networks, cloud environments and applications to help analysts uncover sophisticated attack patterns, improve threat intelligence and initiate prompt incident response.
Cloud security monitoring
An XDR solution continuously monitors SaaS applications, cloud workloads and storage. It detects unauthorized access, suspicious API calls and misconfigurations in an organization’s multi-cloud environment to protect sensitive data and ensure compliance with complex security policies and rapidly changing regulatory requirements.
Incident response and remediation
XDR automates threat containment, remediation and forensic analysis to accelerate incident response and minimize damage. It can isolate compromised endpoints, revoke access credentials and block malicious IPs. You may also generate detailed incident reports for compliance and post-attack analysis.
Ransomware and malware detection
AI-powered analysis, behavior-based heuristics and cross-layer threat intelligence identify file encryption patterns, lateral movement tactics and command-and-control (C2) communications early. XDR can trigger automated responses to limit lateral movements, prevent full-scale infections and mitigate damage.
Phishing protection
XDR supports a multi-layer security approach, giving your team the best chance to detect and mitigate compromised credentials. It incorporates endpoint, email and network protection and leverages user/entity and security analytics to enable automated, repeatable incident response.
Zero-trust implementation
XDR correlates data from multiple security tools to provide enhanced context and visibility. Its continuous monitoring and threat analysis capabilities enable ongoing verification of user identities, device health and network activity, which is the basis of zero-trust implementation.
OT security
XDR solutions like Stellar Cyber offer a single platform to secure IT and OT without adding costs or resources. They provide OT-specific security features like agentless deep packet inspection, DMZ log collection, asset discovery, level 3 device log collection and more to simplify SecOps and protect your entire attach surface.
Data-driven policy enforcement
XDR’s ability to collect data from multiple sources provides valuable insights into network traffic, user behavior and endpoint activities. Security teams can identify patterns and issues to refine their policies, ensuring they remain relevant as the security landscape and IT environment evolve.
Insider threat detection
AI and machine learning capabilities detect subtle indicators of insider threats, such as unusual data transfers, privilege escalation and access attempts outside normal work hours. They correlate security events from multiple sources, enabling analysts to detect and respond to insider-driven risks in real time.
Lateral movement control
XDR enhances visibility throughout your environment, providing the situational awareness you need to see attackers as they move from one asset to another. AI-driven automated response minimizes delay, while next-gen firewalls identify connection from the network to suspicious external IP addresses.
Compliance and regulatory reporting
XDR consolidates disparate security tools, providing real-time visibility, automated reporting and audit-ready logs to simplify compliance reporting. Continuous security monitoring and incident documentation capabilities assist organizations in meeting regulatory standards such as GDPR, HIPAA, SOC 2 and PCI-DSS.
4: How to Implement an XDR Solution in Your MSP Business
XDR is gaining popularity among MSPs, but not all solutions are alike. Here’s how to choose a one that accommodates the unique requirements of MSPs/MSSPs to help you reap all the benefits and maximize your ROI:
Open XDR
Closed systems require specific security controls and operations tools, hampering flexibility and agility as you adapt to shifting requirements and customer demand. On the other hand, you can overlay an open XDR, like Stellar Cyber, on top of your current tool stack to leverage existing investments and speed up time-to-value.
Intelligent multi-tenancy
MSPs need the ability to manage multiple client infrastructures simultaneously. Seek an XDR solution with a unified dashboard where you can monitor real-time activities and access security analytics from all your client environments in one place without commingling their data.
Flexible data sourcing
Your XDR should provide robust, pre-built integrations for incorporating data from security, IT and productivity tools like PSA and ticketing systems to give you a holistic view of your operations. Additionally, it should allow you to automate tasks beyond the initial incident response (e.g. automated report generation and distribution).
Sensor-driven data collection
Accurate AI-driven analytics hinges upon the ability to gather comprehensive data. Your XDR should include sensors for collecting raw network and log data from client infrastructures, helping you identify and mitigate threats that may slip through traditional security stacks.
Threat assessment reporting
Comprehensive reporting isn’t just for compliance and investigations. It can also be a valuable tool for effective client communication and retention. Reports tailored to different audiences (e.g. tech team, executive) with detailed recommendations can help you build trust and provide proactive support.
Machine learning correlation
Alert fatigue may cause security teams to miss important notifications, while duplicative alerts from disparate systems require analysts to spend unncessary time sorting through information. An XDR tool that uses graph machine learning techniques can analyze and correlate alerts, helping your team focus on top-priority incidents.
Alignment with your requirements
Your vendor and its offering should align with your security architecture, threat landscape and business model. Many MSPs face challenges when upgrading their security stacks because of high upfront licensing costs. Instead, you may seek a vendor with flat monthly pricing to align with your billing structure.
Key Steps to Implementing an XDR Solution
After selecting the right open XDR platform, follow these steps to integrate it into your MSP practice:
5: Top Considerations When Implementing XDR in Your MSP Business
Choose an XDR solution that works seamlessly with your existing security tools and infrastructure. Also, you should consider compatibility issues with legacy systems before jumping in with both feet. After integration, verify that the system’s automated correlation and prioritization mechanisms are configured correctly to reduce false positives and enhance analyst efficiency.
While XDR can automate many security tasks, human oversight is still essential for hands-on threat hunting, complex incident investigations and personalized guidance. Human experience and knowledge are crucial for making appropriate decisions based on context and specific client requirements in a complicated IT environment. MSPs must balance automation with human expertise by training their teams to interpret and act on XDR-generated insights.
Moreover, you must address multi-tenant security concerns by isolating client data and implementing granular access controls to prevent unauthorized access to client environments. Based on each client’s requirements, configure your platform to comply with industry regulations like GDPR, HIPAA, PCI-DSS and SOC 2. Also, implement robust logging, reporting and audit capabilities to meet regulatory standards.
Investing in an XDR solution is a business decision, so you must consider the capital and ongoing costs associated with licensing, infrastructure updates and hiring skilled personnel. You should weigh the long-term ROI against the initial deployment and operational expenses and seek a vendor with a billing structure that aligns with your business model.
An open XDR solution is forward-looking. Its ability to integrate with any security tool can help future-proof your MSP business. So, what’s in store for us in the future of XDR?
XDR providers like Stellar Cyber will continue to refine their AI and machine learning capabilities and ensure integration with a broader range of security, IT and OT tools.
More organizations will look to adopt XDR in SecOps to provide a unified platform for improving security posture and performance. Automation and orchestration of security workflows will become critical in helping MSPs lower costs, shorten response time and navigate the tight labor market.
Additionally, organizations will recognize the value of managed XDR services. They’ll seek MSPs who can help them implement and manage an XDR platform for a predictable monthly fee to eliminate the high cost and complexity of deploying and maintaining XDR solutions in-house.
Enhanced Defense and XDR provide managed XDR capabilities as a subscription-based offering that aligns with MSPs’ pricing structures and billing models. We augment Stellar Cyber’s AI, machine learning and automation capabilities with our team’s extensive, hands-on expertise — bringing you the best of both worlds to support a layered, proactive approach to security, protect complex IT environments and meet challenging regulatory requirements.
Use your clients’ existing security tools, including EDR, NDR and SOAR, to support versatile and fast implementation to boost customer satisfaction.
Unify your security stack to improve team performance, cost efficiency and clients’
security postures.
Access the most flexible open XDR platform, supported by vulnerability management, threat assessment reporting and more, at an MSP-friendly price point.
Moreover, our advanced onboarding covers all the bases and addresses the challenges MSPs face when implementing XDR. We handle everything from information gathering, system configuration and integration to infrastructure hardening, model tuning and service delivery to help you shorten time-to-value without hiring a large team.
Learn more about Enhanced XDR and see how we can help you grow your cybersecurity offering.
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