XDR vs MDR: A comprehensive comparison for decision‑makers

Modern organisations are battling against a growing number of cyber threats, making advanced security solutions a must-have. Two of the most popular options are Managed Detection and Response (MDR) and Extended Detection and Response (XDR). Both can identify and respond to security incidents, but each has distinct features and approaches.

If your organisation has experienced a cyber incident and you’re exploring technologies to strengthen your security posture, our team at Zensec is here to help.

In this post, we’ll explain what sets MDR and XDR apart, including their differences in integration scope, visibility, staffing model, scalability, cost structure, response automation, and strategic fit.

What is Managed Detection and Response (MDR)?

Managed Detection and Response (MDR) is a security service where a third-party company monitors your organisation’s systems for cyber threats 24/7. Think of it as outsourcing your security team to experts who watch for hackers and respond when they find something suspicious.

The MDR provider manages security tools like Endpoint Detection and Response (EDR) software, which monitors computers and devices in your network. 

When the system identifies a potential threat, professional security analysts investigate and take action, like isolating an infected computer or blocking malicious activity.

Key features of MDR services:

• 24/7 monitoring: Security experts watch your systems around the clock.

• Human-led investigation: Real analysts examine alerts and determine if they’re genuine threats.

• Rapid response: The provider can take immediate action to contain threats.

• Predictable costs: Most services offer a monthly or yearly subscription.

MDR is beneficial for companies without a security operations centre (SOC) or without enough skilled cyber security staff. Instead of hiring and training a whole security team, you get instant access to experienced professionals.

What is Extended Detection and Response (XDR)?

Extended Detection and Response (XDR) is a technology platform that collects security information from different parts of your IT environment like computers, networks, cloud services, email systems, and user accounts. It combines all intel in one place.

While MDR gives you a team of people, XDR is an advanced software tool that your internal team or a managed service provider will run for you. 

Key characteristics of XDR platforms:

• Broad data collection: Gathers security information from endpoints, networks, cloud, email, and identity systems.

• Automated analysis: Uses machine learning and behavioural analytics to spot complex attacks.

• Unified dashboard: Displays all security information in one central console.

• Automated response: Can automatically block threats, isolate devices, or disable compromised accounts.

XDR systems are best for connecting the dots between different security events. For example, if someone’s email account gets compromised and they start accessing unusual files on their computer, XDR can link these events together as one coordinated attack.

Integration scope and visibility

The main difference between XDR and MDR comes down to how much of your IT environment each can monitor and protect.

MDR – Focused coverage

MDR services focus on specific security tools, including endpoint detection and response systems that monitor computers and mobile devices. 

Some providers also include basic network monitoring or cloud security, but coverage depends on what’s included in your service contract.

The focused approach means that MDR provides excellent visibility into the areas it covers, but might miss threats in other parts of your environment. 

So, if you want to monitor additional systems like firewalls or cloud applications, you might need to add separate tools or upgrade your service plan.

XDR – Comprehensive visibility

XDR platforms collect and analyse data from across your entire IT infrastructure. They typically include pre-built connections to popular security tools and can integrate with third-party systems through APIs.

The broad approach means XDR can detect sophisticated attacks that move between different systems, something isolated security tools might miss.

For instance, XDR might notice that a suspicious login, unusual network traffic, and strange file access are all part of the same attack campaign.

Detection and response capabilities

Both solutions aim to find and stop cyber threats, but use different approaches to achieve this goal.

MDR – Human-driven analysis

MDR relies heavily on skilled security analysts to investigate alerts and determine appropriate responses. When a potential threat is detected, human experts review the evidence and decide what action to take.

Response capabilities include:

• Device isolation: Disconnecting infected computers from the network

• Threat containment: Blocking malicious files or network connections

• Incident guidance: Providing step-by-step remediation instructions

• Emergency support: Immediate assistance during active attacks

The human element in MDR means you get expert judgment on complex security incidents, but response times depend on analyst availability and investigation complexity.

XDR – Automated detection and response

XDR platforms use advanced analytics, machine learning, and behavioural analysis to automatically identify threats and take immediate action. They can quickly process large amounts of security data and respond to routine threats without human intervention.

Automated capabilities include:

• Cross-system correlation: Linking related security events across different platforms

• Behavioural analysis: Identifying unusual patterns that might indicate attacks

• Instant response: Automatically blocking threats, revoking access, or isolating systems

• Playbook execution: Running pre-defined response procedures at machine speed

XDR’s automation means faster response times for common threats, but complex incidents still require human oversight and decision-making.

Operational model and staffing

How MDR and XDR operate creates different requirements for your internal team. By understanding these requirements, you can prepare your team for the integration and ensure a smooth transition. 

MDR – Outsourced security operations

With MDR, the service provider handles most security operations tasks. Their analysts set up and maintain security tools, monitor alerts, investigate incidents, and respond to threats according to your service agreement.

The approach reduces the burden on your internal IT staff, as you won’t need to hire specialised cyber security personnel or maintain 24/7 security operations. 

The MDR provider becomes your external security team. 

However, outsourcing also gives you less direct control over security operations. 

Customising detection rules or integrating with internal systems often requires coordination with your provider, and there might be fewer options based on their standard service offerings.

XDR – Internal management required

XDR platforms require your internal team to deploy, configure, and manage the technology. Your staff must integrate data sources, tune detection rules, and maintain automated response workflows.

While this approach requires advanced expertise, it can also provide greater control and customisation options. 

Organisations with skilled security staff can tailor XDR to their specific environment and threat landscape.

XDR might generate numerous alerts without proper context or response for companies without adequate internal expertise, reducing its effectiveness.

Cost structure considerations

MDR and XDR have different pricing models that appeal to budget situations and organisational priorities.

MDR – Service-based pricing

MDR usually implements a subscription-based model, based on the number of devices monitored or data volume processed. This ensures predictable monthly or annual costs, including technology and human expertise.

Cost advantages:

• No upfront investment: Immediate access to enterprise-grade security without large initial costs.

• Bundled expertise: Technology and skilled analysts included in one price.

• Predictable budgeting: Fixed costs make financial planning easier.

XDR – Technology investment

XDR platforms usually require software licensing fees, based on data volume, number of users, or devices protected. Many modern XDR solutions offer cloud-based subscriptions, reducing infrastructure requirements.

Cost considerations:

• Platform licensing: Software costs that scale with usage or deployment size.

• Staffing requirements: Skilled personnel are needed to manage and operate the platform.

• Potential consolidation savings: May replace multiple separate security tools, reducing overall tool costs.

Large organisations often find XDR cost-effective over time, especially when it consolidates multiple security tools into one platform.

Strategic fit for different organisations

Choosing between XDR and MDR depends on several organisational factors, such as determining which approach aligns better with your needs and capabilities.

Best Fit for MDR:

• Small to medium-sized companies without dedicated security staff.

• Companies with limited cyber security budgets seek predictable costs.

• Organisations that want immediate security coverage without lengthy deployment periods.

• Businesses operating in regulated industries with strict compliance guidelines. 

Best Fit for XDR:

• Larger organisations with existing security teams or SOCs.

• Companies with complex IT environments that involve multiple clouds and systems.

• Organisations that want customisation and direct control over security operations.

• Businesses with skilled cyber security personnel who can maximise platform capabilities.

Ultimately, the right choice depends on your organisation’s size, resources, and security maturity. MDR may be the best fit for smaller teams, while XDR can empower larger organisations with more advanced capabilities.

At Zensec, we deliver both MDR and Cloud XDR as managed offerings, helping organisations with everything from setup to optimisation. Whether you need hands-off coverage or tailored visibility, we can help you explore the right approach.

If you’re weighing MDR or XDR and would like guidance tailored to your organisation, our team at Zensec would be happy to help.