Key Differences Between MDR, MSSP, and SIEM: Which One is Right for You?

Learn the key differences between Security Information and Event Management (SIEM), Managed Security Service Providers (MSSP), and Managed Detection and Response (MDR).

Beyond the endless regulatory and published vulnerability lists, real-world cybersecurity can take a dizzying array of forms: this range is exemplified by the differences between Security Information and Event Management (SIEM), Managed Security Service Providers (MSSP), and Managed Detection and Response (MDR).

They represent a vast range of tools, budgets, and internal resource dedication. From SIEM’s fully in-house demands to MSSP’s complete cyber security outsourcing, this guide gives a full comparison of MDR, MSSP, and SIEM – and how to choose the best fit for you.
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SIEM, MSSP, or MDR: Key Definitions & Roles

Before delving into which tool to choose, it’s vital to establish each one’s role and the wider context they sit in within enterprise security.

Security Information and Event Management (SIEM)

SIEM Definition: As devices within a network interact with one another, they individually log what actions each is making. These are stored locally in the form of log files. These files make up the landscape of your organization’s security: each one represents an individual data point within a network’s interactions. When placed in chronological order, they build a picture of network events like data transactions, errors, and – most importantly – security breaches.


SIEM tools are how cybersecurity teams achieve this wider view: it’s a central platform that collects, correlates, and analyzes log data from across the network – the more sources, the higher the completed picture’s fidelity. While the baseline sources for SIEM solutions are network devices, infrastructure, and applications, the most important data often comes from other security technologies like firewalls and intrusion detection tools. The SIEM collects this by installing agents on devices, and sensors on networks, that passively collect the generated logs. The visibility that this lends cannot be overstated: it’s the reason why SIEM is considered the beating heart of most organizations’ Security Operations Centers (SOCs).


All of this information is then analyzed by the SIEM’s internal engine. Users, event types, and IP addresses are grouped into individual baselines of normal behavior: deviations from this norm can then be identified and presented to the analyst. Most SIEM tools achieve this by sending an alert to the team for manual investigation. A Next-Gen SIEM (NG-SIEM) tool performs an extra layer of analysis on top of this, by cross-referencing behavioral deviations against the context that created them: this filters the genuine threats from innocent users. On top of this, automated playbooks allow the NG-SIEM tool to automatically address root vulnerabilities.

Managed Security Service Providers (MSSP)

MSSP Definition: Think back to the SIEM’s sensors and log analysis engine. These no longer have to be deployed within the organization’s own physical server room, thanks to cloud-based tooling. As a result of this cloud-based architecture, an enterprise can choose to direct this information to another company to manage. This is the foundational offering of a Managed Security Services Provider (MSSP). They deploy and manage a roster of security tooling that plugs into a client’s networks; each client’s data is kept isolated on the backend thanks to multi-tenancy architecture.

MSSP clients may have a dedicated team assigned to them, or a changing roster of cybersecurity experts. Together, they monitor a client’s networks and systems 24/7; they themselves then use tools like SIEM and firewalls to detect and respond to anomalies. Because of their dedicated teams, MSSPs are able to manage large swathes of security infrastructure. On top of this, they may offer compliance support and incident response services that aim to contain and recover from breaches. The vast range of devices, networks, and users being monitored means that MSSPs typically deploy a number of different tools across every single client. This often also means their dedicated teams need to be larger to operate across disparate tooling – and more expensive. Stellar Cyber’s SecOps platform shifts this balance by consolidating and replacing all tools onto a cohesive management platform. Rather than having a SIEM dashboard sitting alongside an intrusion detection system, Stellar Cyber for MSSPs can offer fully-consolidated alert triage, detection, and threat response from one platform, bringing costs down and enhancing MSSP efficiency.

On top of cutting-edge tooling, MSSPs also provide their clients with experienced security professionals. Outsourcing this expertise allows enterprises to avoid some or all of the day-to-day demands that individual tools place on internal teams – thereby reducing the risk of human error.

Managed Detection and Response (MDR)

MDR Definition: Managed Detection and Response relies on the same business model as MSSPs, but with a tighter focus on rapid threat response and remediation. They’re often deployed alongside an internal cybersecurity team to bolster its capabilities – especially in response to a specific threat.

MDR implements network, application, and endpoint threat identification tools, alongside human expertise to detect, analyze, and respond to threats in real time. Unlike MSSPs, a key feature of MDR is proactive threat hunting, which sees skilled analysts actively search for hidden threats such as sophisticated malware or insider activities. Once a threat is identified, MDR providers act swiftly, often by isolating affected systems, blocking malicious traffic, or disabling compromised accounts. They also provide incident response services to neutralize threats and eliminate vulnerabilities.

Another vital aspect of MDR is root cause analysis, which identifies how a previous attack occurred to prevent future incidents. Regular reporting and health checks keep organizations informed about their security posture, with weekly or monthly updates summarizing detected threats, actions taken, and recommendations for improvement. Because of this specialization, MDR providers often have to work in lockstep with in-house teams. In these cases, many SecOps teams prefer to keep the SIEM tool they’ve trained and become familiar with. Stellar Cyber can achieve this flexible tooling by providing additional alerts and correlation. Acting as a front-end solution, Stellar Cyber ingests data, applies comprehensive alerting strategies, and maintains existing workflows – by then forwarding the alerts to the pre-existing SIEM, for instance. By incorporating data from any existing security control, Stellar is able to take pre-existing tooling and transform it into actionable insight.

Unlike purely reactive solutions, MDR emphasizes a proactive and hands-on approach, ensuring organizations are not only alerted to threats but also supported with actionable responses to minimize damage and downtime.

A Quick Overview of the Differences Between MDR, MSSP, and SIEM

Given their close proximity to one another, it’s vital to distinguish the differences between each security and service offering.

Primary Focus

Key Capabilities

SIEM:

MSSP:

MDR:

Implementation Process

Which Option Is Right for Your Organization?

Put simply: the one that best fits your enterprise’s manpower, budget, and risk level. The following four factors can offer the core foundation for the right choice.

In-House Security Team Size and Capabilities

Critical to SIEM use cases are that all of this information is ultimately managed by an inhouse security team. The SIEM requires continuous refinement, as even machine-learning-driven SIEM tools need to be steered away from false positives. Getting this wrong can place immense strain on even the best-funded teams. Because of this, deployment and management can be a long, arduous process, as the tool hones in on your networks’ own behavioral profiles. Considering it can take up to a year for deployment, this strain is vital to keep in mind. Lean teams – or those with a pre-existing high churn rate – may struggle to unveil SIEM’s full capabilities.

As a result, a rough rule for judging SIEM and MSP suitability is that companies with established in-house teams may prefer a dedicated SIEM tool, while smaller IT teams may be best fit for an MSSP.

Budget and Cost

A security setup that demands a new SIEM tool is by no means the cheapest option. This is because SIEM almost always requires other security tools to be in place for effective threat identification – and may require more staff to be hired before it can be deployed.

MSSPs are often best for tight budgets, if there’s very little internal manpower. They also provide a greater degree of budget predictability. On the other hand, MDR can significantly bolster a lean cybersecurity team’s capabilities without having to spend considerably on hiring and training in-house threat detection specialists.

Threat Mitigation Requirements

If real-time threat response is critical, MDR is by far the best option. For long-term compliance and reporting capabilities, however, SIEM’s in-depth log collection can make it an immensely powerful and customizable option. The MSSP choice is best for low-risk environments: there is a higher degree of risk, as there’s very little control over what tools and techniques an MSSP uses on your attack surface. Furthermore, not many MSSPs offer dedicated incident response abilities. Keep an eye on their Service Level Agreements (SLA) to see what threat detection capabilities they’re able to offer.

Compliance Requirements

Organizations that must meet strict compliance requirements like PCI-DSS and GDPR may prefer automated SIEM reporting or MSSP options that offer specific, regulation-focused reporting. Keep in mind that law enforcement and governmental organizations may need to heavily restrict access to third-party security services, and therefore require a SIEM.

Optimize For All Four Use Cases with Stellar Cyber

Stellar Cyber integrates the detailed analysis of SIEM, the scalability of MSSPs, and the proactive threat response of MDR into a single, accessible Open XDR platform.

Its Next-Generation SIEM capabilities leverage AI to analyze and correlate log data across diverse environments, enriching alerts with contextual information for deeper insight and more efficient teams. Designed for both enterprises and MSSPs, the platform’s multi-tenant architecture supports multiple clients efficiently, whilst offering seamless integrations with over 400 cloud and security tools for optimum flexibility. Explore how Stellar Cyber packages this into one cost-effective license with a demo today.

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