Understanding MDR, XDR, and EDR: A Guide to Choosing the Right Security Solution for Organizations and Consumers

As cyber threats grow more sophisticated, proactive security solutions have become increasingly critical. Managed Detection and Response (MDR), Extended Detection and Response (XDR), and Endpoint Detection and Response (EDR) are three approaches organizations use to protect their assets (servers, devices, workstations, etc.). But what makes each solution unique, and how can organizations determine which option best suits their needs? This article explores the distinctions between these security approaches and the essential role of a defensive security engineering team in integrating and managing them effectively. Additionally, we’ll look at the different applications of these solutions for enterprises and individual consumers, clarifying the unique needs of each.

Understanding MDR, XDR, and EDR

EDR, XDR and MDR explained

Each of these products and services offers distinct advantages for threat detection, investigation, and response. EDR (Endpoint Detection and Response), exemplified by solutions like CrowdStrike Falcon, focuses on protecting endpoint devices such as computers, mobile devices, and servers. These systems monitor endpoints in real-time to detect, investigate, and respond to threats, identifying malicious activities directly at the endpoint level. EDR provides detailed visibility into suspicious activities such as malware, ransomware, or unauthorized access, enabling organizations to intercept potential threats before they escalate.

However, EDR solutions are typically not monitored services by default. This means that while they provide valuable data and alerts, the responsibility for analyzing these insights and taking next steps — whether investigating further, isolating affected devices, or mitigating threats — falls on the organization. Without a dedicated and skilled team to interpret and act on EDR outputs, organizations risk leaving threats unresolved. For businesses without the necessary expertise or resources to effectively manage these tasks, EDR alone may not be sufficient. To fully capitalize on the capabilities of EDR and ensure a swift, effective response to detected threats, it’s essential to either build in-house expertise or pair EDR with a monitored service, such as an MDR (Managed Detection and Response) provider, which can shoulder the burden of proactive monitoring and incident response.

MDR, as seen with services like Red Canary, takes a managed service approach that combines EDR with a team of security analysts who monitor, detect, and respond to threats on behalf of an organization. MDR providers often use EDR tools, complemented by additional security technologies, to deliver end-to-end monitoring, investigation, and threat mitigation services. This approach benefits organizations by providing a team of experts to monitor for threats and respond to incidents, reducing the burden on internal teams. MDR is particularly useful for organizations who do not have an in-house security operations center (SOC) or incident response team. However, MDR services are generally subscription-based and may require customization to align with specific business environments. The drawback is that it often provides less control to in-house teams and may result in slower response times for complex threats, especially those that involve business context or a deep understanding of how the IT infrastructure of the organization works.

Red Canary’s MDR Specialities

XDR (Extended Detection and Response), used in solutions like Darktrace, integrates detection and response across multiple layers, including endpoint, network, cloud, and email security. XDR solutions aggregate data from multiple sources to create a unified security framework, analyzing information from diverse security tools to automate responses to complex, multi-vector attacks. Its strength lies in providing a holistic view of security by correlating data across various layers, enabling faster detection of sophisticated threats that might evade detection when viewed in isolation.

Whether XDR is a monitored service or fully managed by in-house teams depends on the specific solution and deployment model. Many XDR platforms provide the option for monitoring through a third-party provider, which can offload much of the operational burden. For organizations choosing to manage XDR in-house, success requires a highly skilled security team capable of interpreting and acting on the platform’s outputs. This includes expertise in integrating XDR with existing infrastructure, configuring its analytics capabilities, and maintaining vigilance to adapt the system to evolving threats. Organizations relying solely on in-house teams must ensure they have thorough processes for incident detection, investigation, and response, as well as personnel with advanced skills in threat hunting, system integration, and tool management. Without these capabilities, the full potential of XDR may remain unrealized, leaving gaps in the security posture. For those without mature in-house capabilities, pairing XDR with a managed service provider is often a more effective choice, as it ensures continuous monitoring and expert-level support to maximize the solution’s value.

EDR, XDR, and MDR Comparison Table

Choosing the Right Solution: How Organizations Determine Their Needs

When selecting between EDR, MDR, and XDR, organizations need to assess factors such as resources, expertise, budget, and the specific threat landscape they face. One key consideration is the level of in-house expertise and resources available. Organizations with limited in-house security expertise often find MDR to be the best option, as it provides hands-on support from external security professionals and reduces the burden on internal teams. These security engineers play a critical role in continually updating and adapting systems to counter emerging threats, providing both incident response and forensics when needed to investigate incidents in detail. Additionally, they maintain around-the-clock monitoring, using insights from threat detection to improve security policies and make the organization more resilient over time. Mature organizations with security operations centers may prefer EDR or XDR solutions since they have the infrastructure and expertise needed to manage these tools effectively. Also, hybrid environments (with systems both on-premises and in the cloud) or multi-layered environments (running multiple different operating systems) typically benefit from XDR’s comprehensive view and faster responses.

Budget and operational costs also play a significant role in decision-making. MDR services are generally subscription-based and can be cost-effective for organizations lacking in-house resources. On the other hand, XDR and EDR may require more investment in skilled personnel and infrastructure, making them better suited for organizations with established security budgets. The required response speed and depth also differ across solutions, with MDR providing managed support that may have a slightly slower response time for nuanced or highly specialized threats, while XDR and EDR enable organizations to respond in real-time, but require trained staff to monitor and manage.

Why a Defensive Security Team Is A Must for Consumers and Institutions

In both consumer and enterprise contexts, a defensive security engineering team can help understand their differing needs and ensure that security solutions work together cohesively, creating a strong and holistic cybersecurity posture. Consumers primarily focus on protection against malware, phishing, and identity theft on personal devices, for which EDR tools are highly effective. Solutions like CrowdStrike Falcon offer endpoint security, addressing threats without requiring extensive customization. In this case, a defensive security team contributes by improving the usability and reliability of EDR solutions, regularly updating software, tuning responses, and promoting cybersecurity awareness for users. Institutions, however, focus on protecting complex, multi-layered environments and ensuring regulatory compliance. Enterprises often need a combination of XDR, MDR, and EDR for comprehensive protection. In such cases, a defensive security engineering team is critical to managing tool integrations, providing real-time analysis, and responding to incidents across the organization’s systems. They help institutions stay compliant with regulations, protect sensitive data, and streamline security operations.

Conclusion

MDR (Managed Detection and Response), XDR (Extended Detection and Response), and EDR (Endpoint Detection and Response) each cater to different layers of security, offering unique advantages tailored to varying organizational needs. For individual endpoints, EDR excels in providing granular visibility and protection, while XDR broadens that scope by integrating across multiple security layers, making it ideal for complex, multi-layered environments. MDR, on the other hand, delivers comprehensive monitoring and incident response, often leveraging third-party expertise to fill in gaps that internal teams may struggle to address.

The critical element in choosing among these solutions lies in assessing your organization’s resources, complexity, and specific security objectives. While an internal defensive security engineering team can unify these solutions, ensuring seamless integration and rapid response to threats, not all organizations can afford to staff such a team around the clock. If your organization has the resources to maintain in-house expertise 24/7, the benefits are unparalleled, providing deep insight and direct control over your security infrastructure. However, for the vast majority of organizations that lack this capability, attempting to manage these responsibilities internally with limited expertise and resources can lead to suboptimal results, leaving vulnerabilities unaddressed.

Given these realities, most organizations are better served by leveraging MDR solutions, which provide expert oversight and incident response without the need for extensive in-house capabilities. In this context, MDR acts not just as a stopgap, but as a strategic investment, ensuring comprehensive protection and enabling your organization to keep pace with the threat landscape. Ultimately, the decision should align with your ability to achieve and sustain a resilient security posture. For many, MDR represents the most practical and effective path forward.

References

Aarness, Anne. “What Is EDR? Endpoint Detection & Response Defined.” CrowdStrike, CrowdStrike, 26 Oct. 2023, www.crowdstrike.com/en-us/cybersecurity-101/endpoint-security/endpoint-detection-and-response-edr/?srsltid=AfmBOoqVmFJaA7ZoyLOkXQE0QKET7QT-Mfu6glTkIzPeClRaRZR791CJ.

“EDR vs. MDR vs. XDR: Choosing the Best Option.” SentinelOne, SentinelOne, 6 Sept. 2024, www.sentinelone.com/cybersecurity-101/endpoint-security/edr-vs-mdr-vs-xdr/#:~:text=MDR%20delivers%20automated%20response%20capabilities,led%20incident%20response%20and%20remediation.&text=EDR%20includes%20basic%20threat%20intelligence,threat%20intelligence%20feeds%20and%20analysis.

“EDR, MDR and XDR- What Do They Mean?” Xperience, Xperience, 11 Aug. 2023, www.xperience-group.com/news-item/edr-mdr-and-xdr-what-do-they-mean/.

Hayes, Nick. “EDR vs MDR VS XDR: Everything You Need to Know.” CrowdStrike, CrowdStrike, 18 Apr. 2023, www.crowdstrike.com/en-us/cybersecurity-101/endpoint-security/edr-vs-mdr-vs-xdr/?srsltid=AfmBOoq5zUkJb7mUXWNdzAHXFJ-tGfw3QguzNEZ0U3xaSip9SMG1dqVI.

Robinson, Libby, and James Morgan. “What Is the Difference between MDR, XDR, and EDR?” Field Effect, Field Effect Software Inc., 31 Oct. 2024, fieldeffect.com/blog/mdr-xdr-edr.

“Why Modern Security Teams Choose MDR.” Red Canary, Red Canary, 2024, redcanary.com/solutions/why-mdr-security/#:~:text=What%20is%20MDR%3F,of%20all%20types%20and%20sizes.

About the Author

Grace Dees is the Cybersecurity Business Analyst at Resonance Security. She specializes in the intersection of traditional and Web3 security by bridging the gap between technology and business objectives to deliver impactful solutions aligned with client needs.

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