Cybersecurity as a Service: Complete Guide

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Security |AI & Automation |Cloud |Cost Optimization |Data & Analytics |Infrastructure

Published on: 8 March 2023

A poll of 250 IT and cybersecurity experts at firms with more than $100 million in annual revenue indicates that purchasing cybersecurity is far more popular than building and managing cybersecurity systems.

The poll, conducted by CITE Research on behalf of Cribl, a provider of a data routing platform, reveals that despite economic challenges, 95 percent of respondents will boost investments in cybersecurity, with over two-thirds of respondents (62 percent) planning to purchase rather than create.

54% of respondents plan to invest in automation across infrastructure and cybersecurity. Nonetheless, just over a third (36%) of respondents expect to reduce funds for staffing and training despite the growing attack surface. This change means that many firms will increasingly rely on external knowledge.

MSPs are rethinking cybersecurity delivery

The increasing desire in relying more on easily consumable cybersecurity services coincides with the evolution of the platforms used to supply these capabilities. Historically, a significant number of managed security service providers (MSSPs) have constructed their own security operations centers (SOCs). Now, it is easier than ever before to resell SOC services provided by another MSSP or a vendor.

Simultaneously, several MSPs are extending the scope of their cybersecurity services to go well beyond the transmission of warnings. Extended Managed Detection and Response (XDR) solutions have been deployed to improve the security of network edge endpoints and cloud services. And regardless of how these services are provided, the scope has grown substantially.

AI development is creating demand for foreign expertise

While there are numerous examples of firms that utilize these services, the majority of organizations continue to rely largely on internal cybersecurity teams who collaborate closely with IT operations teams to manage cybersecurity. But, the rise of artificial intelligence (AI) will certainly push firms to rely less on internal teams.

The explanation for this has little to do with those teams’ cybersecurity expertise. Rather, the cost of training AI models to stop cyberattacks is beyond the means of the vast majority of enterprises. To construct AI models, massive volumes of data must be collected and analyzed. The majority of organizations lack sufficient data to complete this task. Even if they had, it is unlikely that they have data scientists who comprehend the complexities of cybersecurity data. As attack vectors evolve, these AI models must likewise be constantly updated.

In the meantime, cybercriminals are gaining access to new classes of generative AI services that will enable them to unleash a wave of cyberattacks that will be increasingly difficult to detect without the assistance of counteracting AI platforms. In practice, the whole cybersecurity industry is currently engaged in an AI arms race. IT leaders who believe for one second that their organization can withstand this assault without depending heavily on external cybersecurity services are deluded.

Obviously, there are numerous MSPs that lack the resources necessary to develop and sustain these models. As the bar for providing effective cybersecurity services continues to raise, it is likely that some kind of consolidation will occur. The most pressing concern at present is determining with whom to form an alliance in order to maintain relevance tomorrow.

Types of Cybersecurity as a Service Offerings

Not all CSaaS solutions are created equal. The market has matured into several distinct service categories, each addressing different aspects of an organization’s security posture. Understanding these categories helps you select the right combination for your environment.

Managed Detection and Response (MDR)

Managed Detection and Response focuses on identifying and neutralizing threats before they cause damage. MDR providers deploy endpoint agents, network sensors, and log collectors across your infrastructure. A dedicated team of analysts monitors the data around the clock, investigating alerts and escalating confirmed incidents.

Unlike traditional antivirus or firewall management, MDR goes beyond prevention. When a threat is confirmed, the MDR team takes direct action to contain and remediate it. For a mid-sized business, outsourcing MDR typically costs between $15,000 and $40,000 per year, compared to $250,000 or more to staff a 24/7 internal security operations team with the same capabilities.

Security as a Service (SECaaS)

SECaaS is a broad category that encompasses cloud-delivered security functions such as email filtering, identity and access management, vulnerability scanning, and data loss prevention. These services are typically subscription-based and integrate directly with your existing cloud infrastructure.

The appeal of SECaaS is modularity. You can subscribe to exactly the capabilities you need and add more as your risk profile changes. A common starting point is email security and endpoint protection, which together address the two most exploited attack vectors.

SOC as a Service (SOCaaS)

SOC as a Service delivers the full capabilities of a security operations center without the need to build or staff one internally. This includes 24/7 monitoring, threat intelligence feeds, SIEM management, incident response coordination, and compliance reporting.

Building an in-house SOC requires a minimum investment of $1 million to $2 million in the first year when you factor in personnel, tooling, and facility costs. SOCaaS compresses that into a predictable monthly fee, often ranging from $5,000 to $15,000 per month depending on the scope of coverage and the number of assets monitored.

Cost Comparison: In-House vs. CSaaS

The financial case for cybersecurity as a service is compelling when you examine the true cost of building equivalent capabilities internally. An in-house security team requires hiring specialized roles such as security analysts, incident responders, threat hunters, and a CISO or security manager. In the current market, a single experienced security analyst commands a salary of $90,000 to $130,000, and that figure climbs significantly for senior roles.

Beyond salaries, you need to account for tooling. A SIEM platform alone can cost $50,000 to $200,000 annually in licensing. Add endpoint detection, vulnerability management, threat intelligence subscriptions, and training, and total annual costs for a modest internal security program easily exceed $500,000.

By comparison, a comprehensive CSaaS engagement covering monitoring, detection, response, and compliance support typically ranges from $60,000 to $180,000 per year for a mid-market organization. That represents a savings of 60 to 80 percent while often delivering superior coverage, because the provider is spreading the cost of top-tier talent and tooling across many clients.

Key Evaluation Criteria When Choosing a CSaaS Provider

Selecting the right CSaaS partner is a critical business decision. A poor choice can leave you with a false sense of security while threats go undetected. We recommend evaluating providers against the following criteria.

Response Time and SLAs

Ask potential providers for their mean time to detect (MTTD) and mean time to respond (MTTR). Industry benchmarks suggest that MTTD should be under 30 minutes for critical alerts and MTTR should be under one hour. Ensure these metrics are codified in a service level agreement with financial penalties for non-compliance.

Technology Stack and Integration

The provider’s tooling should integrate with your existing environment. If you run Microsoft 365 and Azure, the provider should have deep expertise in Microsoft Sentinel, Defender for Endpoint, and Entra ID. Ask whether the provider uses a single-vendor stack or a best-of-breed approach, and verify that their platform supports your infrastructure and DevOps toolchain.

Transparency and Reporting

You should receive regular reports that include the number of alerts investigated, incidents confirmed, actions taken, and recommendations for improving your posture. A provider that operates as a black box, where you submit tickets and receive occasional updates, is not delivering the value you are paying for.

Scalability and Flexibility

Your security needs will change as your business grows, as you adopt new technologies, or as regulatory requirements shift. The provider should offer flexible contract terms and the ability to add or remove service modules without renegotiating the entire agreement.

Industry Experience and Compliance Knowledge

If your organization operates in a regulated industry such as healthcare, finance, or government contracting, the provider must demonstrate experience with the relevant compliance frameworks. Ask for references from clients in your sector and verify that the provider can support audit readiness for standards like HIPAA, SOC 2, PCI DSS, or CMMC.

Frequently Asked Questions

What is the difference between an MSSP and CSaaS?

A Managed Security Service Provider (MSSP) is a type of company, while CSaaS is a delivery model. Many MSSPs deliver their services using the CSaaS model, meaning you consume security capabilities on a subscription basis rather than purchasing hardware and software outright. The key distinction is that CSaaS emphasizes cloud-native delivery, scalability, and outcome-based pricing, whereas traditional MSSP engagements may still involve on-premises equipment managed by a third party.

How quickly can a business deploy CSaaS?

Most CSaaS providers can onboard a new client within two to four weeks for standard deployments. The timeline depends on the complexity of your environment, the number of integrations required, and whether you need custom detection rules or compliance configurations. A phased rollout, starting with endpoint detection and expanding to full SOC coverage, is a common approach that reduces risk during the transition.

Is CSaaS appropriate for small businesses with limited IT staff?

Yes. In fact, small businesses are often the best candidates for CSaaS because they cannot justify the cost of a full-time security team. A business with 50 employees and a single IT generalist can achieve a security posture comparable to much larger organizations by partnering with a CSaaS provider. The provider handles monitoring, detection, and response, while your internal staff focuses on day-to-day IT operations and user support.


Ready to explore cybersecurity as a service? Exodata delivers managed security services backed by expert teams and advanced threat detection. Contact us to discuss your security strategy and find the right level of coverage for your organization.