The Market Turns its Attention to Managed Detection and Response

As CEO of Blackpoint Cyber, I witness the rapidly evolving cybersecurity landscape firsthand. The recent surge in interest in Managed Detection and Response (MDR) solutions is more than just a trend; it’s a pivotal shift in how businesses protect themselves against increasingly sophisticated cyber threats. Here’s what MSPs need to know to navigate this crowded market and ensure their clients remain secure when (not if) an attack occurs.

I see three key factors driving the increased focus on the MDR market. First, cybersecurity demands highly specialized expertise. Right now, the industry is experiencing a shortage of qualified professionals, making it incredibly difficult to maintain effective SOCs. This challenge is even greater for MSPs who already manage complex IT environments and now face the added burden of handling specialized security operations. As a result, MSPs are actively seeking partners who can provide the necessary support in this critical area.

Second, the economic opportunity in the MDR market is substantial. Advanced security services are growing at about a 32% CAGR, so it’s a natural way to increase profit. MSPs are also motivated to offer MDR services to protect their reputation and meet customer expectations, as SMB customers often don’t distinguish between IT and security failures. If either one happens, MSPs are on the hook in the eyes of their clients.

Third, the shift from on-premises to cloud infrastructures has played a key role. As more businesses migrate to platforms like Microsoft 365 and Azure, threat actors are increasingly targeting these environments.

With recent rumors of MDR acquisitions, the competitive landscape in the MDR space is witnessing two main trends. First, there’s a “race to the bottom” where I see providers making grand claims about their capabilities without proven efficacy. This has led to decreased vendor selection sophistication and willingness to pay from end customers, driven by pricing pressures. This trend is likely to backfire as customers realize the inadequacies of these cheaper solutions.

Conversely, I’m also seeing significant growth among MSP’s serving the mid-market (200 to 5000 employees). These MSPs leverage advanced platforms like ours, combined with the latest Microsoft infrastructure, to offer high efficacy and rapid deployment at a lower cost than mid-market MSPs. This allows them to move upmarket and attract larger, more sophisticated clients. This growth is fueled by private equity investments and acquisitions of MSPs, resulting in a more competitive and effective market for MSPs and their clients.

While the MDR market is booming, not all providers will offer you the same level of protection. Many services out there today lack the coverage needed to detect and respond to threats effectively. Not all providers are making the investment to advance their capabilities and meet the continuously evolving threat landscape. This can leave MSPs and their clients wide open and vulnerable to attacks, despite having a solution in place.

To get the best coverage from your MDR partner, make sure you consider the following:

1. Technology Stack: Avoid solutions that rely heavily on SIEM systems. These can be slow and inefficient. Instead, look for platforms that offer real-time, and human led responses, with a strong automation and enrichment focused technology stack enabling speed for response.
2. Total Cost of Ownership: Consider the long-term costs associated with managing and maintaining the solution, not just the initial price per endpoint.
3. Scalability: Ensure the platform can scale to meet the needs of your business as it grows, without compromising on performance or security.
4. Support and Enablement: Choose a provider that offers robust support and resources to help you succeed, such as sales enablement tools, educational programs, and co-selling opportunities.
5. 24/7 Monitoring and Response: Ensure the provider offers around-the-clock monitoring and response capabilities. Cyber threats don’t follow a 9-to-5 schedule, so your security shouldn’t either.

I’m proud to say that Blackpoint is at the forefront of these industry trends, continuously adapting and innovating to stay ahead of emerging threats. With an emphasis on cloud security, we’ve focused on enhancing our platform to support various authentication providers, including Microsoft and Google. This flexibility allows us to offer robust protection regardless of the specific cloud services your clients use.

Our approach to MDR is comprehensive, including detection, prevention, and swift response. Threats are not only identified quickly but also neutralized quickly to prevent significant damage to your clients’ infrastructure and reputation.

In a crowded market, I make sure we do more than just set ourselves apart. We offer the most robust, holistic security solution by far. Other MDR providers offer generic or fragmented services, we provide a unified platform that integrates endpoint detection, network monitoring, and cloud security. This holistic approach ensures there are zero gaps in protection across your clients’ infrastructure.

Another important differentiator is our SOC, which is staffed by experienced cybersecurity experts who operate 24/7. In an industry struggling to find qualified specialists, our team leverages the expertise of former NSA operatives and is working with nation-state-grade technology. Additionally, our dedicated Adversary Pursuit Group proactively addresses vulnerabilities and threats. This deep expertise, combined with our quick response times, allows us to neutralize threats faster than any other MDR solution on the market. Our platform is also designed to be user-friendly and scalable, enabling MSPs to manage their security operations effectively without overwhelming their already stretched resources.

Threat actors are constantly evolving, finding new vulnerabilities to exploit and developing new methods to attack. At Blackpoint, we’re always innovating too, so as new threats emerge, we’re well-prepared to keep your clients protected.

By partnering with Blackpoint, MSPs can confidently offer top-tier security services to their clients, safeguarding their reputations and providing peace of mind in an increasingly complicated cyber environment. Our comprehensive, proactive, and scalable MDR solutions make us the ideal choice for MSPs looking to stay ahead of the curve and protect their clients’ most critical assets.

Contact us to learn more about our MDR solution.