SOC vs. MDR: Which Model Best Protects Your Business and Budget?

In today’s complex threat landscape, simply having a firewall and antivirus is not enough. Businesses are under constant pressure to monitor their systems 24/7, detect threats instantly, and respond before damage is done. This has led many
to a critical crossroads: should we build an in-house Security Operations Center (SOC) or subscribe to a Managed Detection and Response (MDR) service?

The answer isn’t always simple, and the right choice depends on your budget, resources, and risk appetite. This article will cut through the noise to compare SOC and MDR, explore the critical financial differences, and help you decide which cybersecurity model is right for you.

Explore specific topics below:

What is SOC? | What is MDR? | The Financial Reality | The Hybrid Approach | How to Choose the Right Solution |

What is SOC? (Security Operations Center)

A Security Operations Center (SOC) is a centralized, internal command center dedicated to cybersecurity. It’s built around a team of people, a set of processes, and a stack of technology designed to continuously monitor, detect, analyze, and respond to security incidents.

A mature SOC typically operates with tiered analysts:

• Tier 1 Analysts: The front line, monitoring alerts from tools like a SIEM (Security Information and Event Management) system and escalating credible threats.
• Tier 2 Analysts: Deeper investigation of incidents, analyzing forensic data to understand the scope and impact of a threat.
• Tier 3 Analysts (Threat Hunters): Proactively searching for hidden threats and vulnerabilities within the network that automated tools may have missed.

Key Characteristics:

• Delivery: Typically built and staffed in-house, though it can be co-managed.
• Focus: Managing alerts, log analysis, and compliance reporting.
• Control: Provides complete control over tools, processes, and data.
• Operation: Requires 24/7 staffing for continuous coverage.

Pros:

• Full Customization: Aligned perfectly with your organization’s specific policies and risk profile.
• Complete Control: You own the data, the tools, and the operational priorities.
• Compliance Powerhouse: Essential for demonstrating deep operational control for regulations like NIS2 and ISO 27001.

Cons:

• Extremely High Cost: Significant upfront and ongoing investment in tools and talent.
• Talent Scarcity: Hiring and retaining expert security analysts is difficult and expensive
• Alert Fatigue: In-house teams can become overwhelmed by the sheer volume of alerts, leading to burnout and missing threads.
• Slow to Scale: Building a mature, 24/7 SOC can take years.

Want to know more?

What is MDR? (Managed Detection and Response)

MDR is a fully outsourced cybersecurity service that provides organizations with 24/7 threat monitoring, detection, and response capabilities, delivered by a team of remote experts. Instead of just sending you alerts, an MDR provider’s primary goal is to deliver a security outcome: containing and neutralizing threats on your behalf.

MDR services are built on an advanced technology stack, often including Endpoint Detection and Response (EDR), Network Detection and Response (NDR), and cloud security tools, all of which are managed by the provider.

Key Characteristics:

• Delivery: A fully managed, subscription-based service.
• Focus: Threat containment and response outcomes, not just alerts.
• Expertise: Provides immediate access to elite threat hunters and incident responders.
• Speed: Rapid deployment and immediate 24/7 coverage.

Pros:

• Predictable Cost: A fixed monthly or annual fee makes budgeting easy.
• Access to Experts: Leverage world-class security talent you couldn’t hire yourself.
• Fast Time-to-Value: Go from vulnerable to protected in days, not years.
• Reduced Alert Fatigue: The MDR provider filters the noise and only escalates critical, verified threats.

Cons:

• Less Direct Control: You are trusting a third party with your security operations.
• Potential for Vendor Lock-in: Migrating away from a deeply integrated MDR provider can be complex.
• Less Customization: The service is standardized, though good providers offer flexibility.

Wondering if MDR can meet your security goals?

The Financial Reality: SOC vs. MDR

For most organizations, the decision comes down to cost and ROI. Building an in-house SOC is a capital-intensive project.

Cost Factor	In-House SOC (Annual Estimate)	Managed Detection and Response (MDR)
Staffing	€450,000+ (for 5-6 analysts for 24/7 coverage)	Included in subscription
SIEM/Software	€90,000+ (licensing, maintenance)	Included in subscription
Training	€40,000+ (ongoing professional development)	Included in subscription
Infrastructure	€20,000+ (servers, data storage)	Not applicable
Total Estimated Cost	€600,000+ per year	Predictable Subscription Fee

While an in-house SOC offers ultimate control, MDR provides a more cost-effective path to achieving a mature security posture with a faster and more predictable ROI.

The Hybrid Approach: The Best of Both Worlds?

You don’t always have to choose. Many large organizations adopt a hybrid model:

• The In-house SOC manages overall security strategy, compliance, and internal risk.
• The MDR Provider acts as a force multiplier, providing 24/7 threat hunting, expert incident response, and coverage for nights, weekends, and holidays.

This co-managed approach allows an organization to maintain strategic control while outsourcing the intensive, 24/7 operational burden.

Let’s discuss if a hybrid SOC/MDR model is the right fit for scaling your security operations.

How to Choose the Right Solution for Your Organization

Ask yourself these key questions:

1. What is your budget? If you have less than €400,000 in annual operational budget for security, a full-fledged 24/7 in-house SOC is likely out of reach.
2. How quickly do you need coverage? If you need 24/7 protection now to meet compliance (e.g., NIS2) or mitigate immediate risk, MDR is the faster path. A SOC takes 12-24 months to build.
3. What is your internal expertise? Do you have security analysts, threat hunters, and incident responders on staff today? If not, MDR gives you instant access to the talent.
4. What is your primary goal? Do you need an internal team to manage compliance and policy (favoring SOC), or do you need an expert service to stop threats (favoring MDR)?

For most small and mid-sized businesses (SMBs), MDR offers the most logical and financially sound path to advanced protection. For large enterprises with significant resources and specific compliance needs, an in-house or hybrid SOC may be the long-term goal.

Ready to find the right path for your organization?

Book a free, no-obligation security strategy session with our team to get a personalized recommendation based on your unique needs.