Managed Detection and Response (MDR) vs SOC-as-a-Service in 2025: Product Comparison, Pricing Models, and Buy vs Subscription Cost Analysis

Cybersecurity operations have reached a breaking point in 2025. Threat volumes continue to rise, attackers move faster using automation and AI, and experienced security analysts remain scarce and expensive. As a result, many organizations struggle to operate an effective internal Security Operations Center (SOC).

To address this challenge, enterprises increasingly turn to Managed Detection and Response (MDR) and SOC-as-a-Service (SOCaaS) providers. While these services are often grouped together, they differ significantly in scope, pricing structure, and long-term cost implications.

This article delivers a deep, practical comparison of MDR vs SOC-as-a-Service in 2025, analyzing leading enterprise offerings, realistic pricing models, and the financial trade-offs between building capabilities internally versus subscribing to managed security services. The focus is on decision-makers who need predictable costs, measurable outcomes, and defensible ROI.

Why MDR and SOC-as-a-Service Are High-CPC Topics in 2025

Demand for outsourced security operations has surged due to several converging factors:

• Global shortage of skilled SOC analysts

• Increasing regulatory scrutiny and breach reporting requirements

• Growing complexity of hybrid and multi-cloud environments

• Rising cost of security tooling and integrations

For many organizations, outsourcing security operations is no longer a temporary fix—it is a strategic operating model.

Defining the Two Models Clearly

What Is Managed Detection and Response (MDR)?

MDR is a managed security service focused primarily on threat detection and response, usually built around a specific technology stack.

Core MDR characteristics:

• Continuous monitoring of endpoints, cloud workloads, and identities

• Threat detection using vendor-managed tools

• Active incident investigation and response

• Human-led analysis with automated assistance

MDR providers typically own and operate the security platform on behalf of the customer.

What Is SOC-as-a-Service (SOCaaS)?

SOC-as-a-Service provides a fully outsourced SOC function, often using the customer’s existing security tools.

Core SOCaaS characteristics:

• 24/7 SOC operations

• Log monitoring and correlation

• Incident triage and escalation

• Compliance reporting and dashboards

SOCaaS focuses on operational execution, not tool ownership.

Key Conceptual Difference

• MDR = Outcome-driven (detect and stop threats)

• SOCaaS = Process-driven (run SOC operations)

Market Evolution in 2025

MDR Market Trends

MDR services have matured rapidly and now include:

• AI-assisted threat hunting

• Automated containment actions

• Cloud-native detection logic

• Identity and SaaS telemetry coverage

Most MDR offerings are subscription-based and tightly integrated with EDR or XDR platforms.

SOCaaS Market Trends

SOC-as-a-Service has evolved to address:

• Compliance monitoring

• Multi-vendor tool integration

• Long-term log retention

• Audit readiness

SOCaaS often complements existing SIEM deployments rather than replacing them.

Pricing Models Explained

MDR Pricing Models

Most MDR providers price based on:

• Number of endpoints

• Number of users or identities

• Cloud workloads monitored

• Service tier (monitor-only vs active response)

Typical MDR Cost (2025):

• $50–120 per endpoint/year

• Mid-size enterprise: $150,000–600,000 annually

SOC-as-a-Service Pricing Models

SOCaaS pricing is usually based on:

• Log ingestion volume

• Number of monitored assets

• 24/7 coverage level

• Compliance and reporting requirements

Typical SOCaaS Cost:

• $12,000–40,000 per month

• Annual cost: $150,000–500,000+

Buy vs Subscribe: Internal SOC Comparison

Leading MDR Providers Compared

1. CrowdStrike Falcon Complete

Best for: Endpoint-first organizations

Service Scope:

• Managed EDR

• Threat hunting

• Full remediation

Pricing Model:

• Per endpoint subscription

Typical Cost:

• $90–120 per endpoint/year

Strengths:

• Fast detection and response

• Minimal customer workload

Limitations:

• Limited SIEM-style visibility

• Vendor lock-in

2. Microsoft Defender Experts for XDR

Best for: Microsoft-centric enterprises

Service Scope:

• Managed detection across endpoints, identity, email

• Guided and automated response

Pricing Model:

• Per user subscription

Typical Cost:

• $15–25 per user/month

Strengths:

• Strong ecosystem integration

• Competitive pricing

Limitations:

• Less flexible outside Microsoft stack

3. Palo Alto Networks Cortex MDR

Best for: Enterprises seeking deep analytics

Service Scope:

• Managed XDR

• Advanced behavioral detection

• SOC-level investigation

Pricing Model:

• Per endpoint/workload

Typical Cost:

• $80–110 per endpoint/year

Strengths:

• High detection accuracy

• Strong automation

Limitations:

• Higher cost at scale

Leading SOC-as-a-Service Providers Compared

1. Secureworks Taegis SOC

Best for: Large enterprises with SIEM investments

Service Scope:

• SIEM monitoring

• Incident triage

• Compliance reporting

Pricing Model:

• Subscription based on data volume

Typical Cost:

• $20,000–45,000 per month

Strengths:

• Mature SOC processes

• Strong compliance support

Limitations:

• Slower response compared to MDR

2. AT&T Cybersecurity SOCaaS

Best for: Global organizations

Service Scope:

• 24/7 monitoring

• Incident escalation

• Threat intelligence

Pricing Model:

• Custom enterprise contracts

Typical Cost:

• $250,000–700,000 annually

Strengths:

• Global scale

• Industry expertise

Limitations:

• Less hands-on remediation

3. Trustwave Managed SOC

Best for: Compliance-heavy industries

Service Scope:

• SIEM monitoring

• Audit reporting

• Incident response coordination

Pricing Model:

• Tiered subscription

Typical Cost:

• $180,000–450,000 annually

Strengths:

• Strong compliance alignment

• Clear reporting

Limitations:

• Limited automation

Cost Scenarios in Practice

Scenario 1: Mid-Size SaaS Company

• MDR only

• 1,500 endpoints

• Annual cost: ~$180,000

Outcome: Rapid response, minimal SOC overhead

Scenario 2: Financial Institution

• SOCaaS + internal tools

• Annual cost: ~$420,000

Outcome: Audit readiness, slower response

Scenario 3: Hybrid Enterprise

• MDR + light SOCaaS

• Annual cost: ~$550,000

Outcome: Balanced detection and compliance

Hidden Costs Often Overlooked

• Data retention beyond default MDR limits

• Incident response beyond SLA scope

• Integration with ticketing and ITSM

• Change management and playbook approvals

When MDR Is the Better Choice

MDR is ideal if your organization:

• Needs rapid threat containment

• Lacks in-house SOC expertise

• Prefers predictable pricing

• Is comfortable with vendor-managed tools

When SOC-as-a-Service Makes More Sense

SOCaaS is better if your organization:

• Already owns SIEM and security tools

• Has strong compliance requirements

• Needs detailed audit trails

• Wants operational control without staffing

Build vs Buy: Long-Term Economics

Over five years:

• Internal SOC costs often exceed $5–8M

• MDR averages $1–3M

• SOCaaS averages $1.5–4M

For most organizations, managed services provide superior ROI.