When it comes to protecting small and mid-sized businesses, three major solution categories have emerged to meet modern security needs: Endpoint Detection and Response (EDR), Managed Detection and Response (MDR), and Extended Detection and Response (XDR). Each offers different capabilities, costs, and complexities.
This guide focuses on XDR technology and highlights key vendors – SentinelOne, CrowdStrike, Sophos, and others – that MSPs commonly partner with. Use the insights below to select the right security technology to meet your clients’ needs.
What is XDR?
Extended Detection and Response (XDR) is the evolution of EDR that broadens the security scope beyond endpoints. Where EDR focuses on endpoint data, XDR brings together telemetry from endpoints, networks, cloud workloads, user identities, and other IT layers into a unified platform for threat detection and response.
The idea of XDR is to break down the silos between security tools. Rather than having separate solutions for endpoint, email, network, etc., XDR unifies these signals in one system, correlating them using machine learning, and allowing security analysts to respond through a single interface.
In many ways, XDR is like a SIEM (Security Information and Event Management) tool combined with EDR. It collects and correlates data across multiple sources, but with more automated analysis and built-in response capabilities than traditional SIEMs.
There is an important distinction between DIY XDR and Managed XDR. DIY tools give MSPs full control over threat detection and response but requires in-house expertise to manage alerts, fine-tune rules, and integrate multiple data sources. Managed XDR offloads these responsibilities to a provider, offering 24/7 monitoring and expert-driven response. That makes it ideal for MSPs that need enterprise-grade security without the operational burden.
Benefits of XDR
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Unified Visibility and Correlation: XDR unifies endpoint data with other sources to detect complex threats. For example, it might link an unusual O365 login, a phishing email, and an endpoint alert to reveal a targeted attack. Individually, these might seem minor, but XDR connects the dots, improving detection and reducing missed threats. For MSPs, this means faster investigations and a clearer view of incidents.
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Improved Efficiency with Fewer Tools: XDR helps MSPs streamline security by consolidating multiple tools into a single platform. Instead of managing separate dashboards for EDR, email, and firewalls, XDR aggregates and correlates alerts, reducing noise and highlighting real threats. Automation further cuts analyst workload, improving efficiency. While these platforms aren’t inexpensive, they can replace multiple tools, lowering overall costs and management overhead.
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Faster Response Across Domains: XDR enables faster, automated threat response across multiple systems. If an attack is detected, MSPs can take actions like isolating endpoints, blocking malicious emails, and resetting compromised accounts—all from a single console. This orchestration reduces manual effort, speeds up containment, and minimizes the impact of incidents, acting as a central command center for security operations.
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Flexibility – Mix and Match: Some XDR solutions are flexible in data integration. This means an MSP can leverage existing investments. An “open XDR” might let you feed in logs from a third-party firewall or use an API to pull alerts from Microsoft 365, not forcing you to use one brand for everything. Additionally, many XDR vendors offer a la carte packaging or modular adoption. You might start with endpoint + email, and later integrate network data. This lets an MSP incrementally extend their detection capabilities as needed.
XDR Challenges for MSPs
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Higher Complexity and Skill Requirements: XDR is more complex than EDR, requiring MSPs to configure multiple security layers and interpret correlated alerts. Teams must understand detection engines for email, cloud, and network security, along with API integrations. Without proper training, MSPs may struggle to utilize XDR fully. Deployment requires careful planning to integrate with various client environments, making it a bigger lift than traditional endpoint solutions.
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Cost Considerations: XDR is an expensive option, often requiring multiple licenses per user or pricing based on data volume. Small MSPs may find costs hard to pass on to small clients who only need basic endpoint protection. ROI depends on client risk level—great for high-risk customers but excessive for a small law office. Some vendors, like Microsoft, bundle XDR features in premium licenses, which MSPs can leverage to justify costs.
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Vendor Lock-in and Integration Limits: Many XDR solutions work best within a single vendor’s ecosystem, limiting flexibility for MSPs with diverse client environments. “Open XDR” platforms offer broad API integrations but may require complex setup and lack seamless compatibility. MSPs must assess whether an XDR solution can effectively integrate third-party tools or risks creating vendor dependency.
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Deployment Overhead: XDR deployment involves multiple components—endpoint agents, network/cloud sensors, and log forwarding. Unlike EDR, covering network traffic may require mirroring traffic to sensors or enabling NetFlow. Cloud SaaS protection needs API integrations. Some vendors simplify setup, but small MSPs may still struggle with the expertise and time required.
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Alert Volume and Management: While XDR aims to reduce noise, it generates significantly more data than EDR. If not well-tuned, it can overwhelm MSPs with alerts. Fine-tuning takes time, and teams must develop processes to handle outputs efficiently.
Key XDR Vendors to Consider
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SentinelOne – Singularity XDR: SentinelOne’s Singularity XDR extends beyond endpoint security, ingesting and correlating data from cloud workloads, identities, and networks via integrations. MSPs using SentinelOne EDR can expand into XDR by adding modules like cloud workload protection and identity threat detection, all managed within the same console. This single-agent, single-console approach simplifies management. MSPs can also adopt components gradually, making it a flexible and scalable choice.
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CrowdStrike Falcon Insight XDR: CrowdStrike’s Falcon platform extends beyond endpoint security, incorporating identity protection (via Preempt), cloud workload protection (Falcon Cloud Workload), and log management (Falcon LogScale from Humio). Its key strength is the Threat Graph, which powers deep correlations across all data sources. MSPs invested in CrowdStrike can expand gradually—adding identity protection for Active Directory signals or LogScale for SIEM-like log analysis. Costs rise with additional modules, but the ecosystem is robust, with a marketplace for seamless third-party integrations.
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Sophos XDR: Sophos XDR is a feature within the Sophos Central platform, aggregating data from Intercept X endpoint, Sophos firewalls, and select third-party sources like Microsoft 365. MSPs using multiple Sophos products gain better correlation, such as linking an email threat to an endpoint alert. Licensed as an add-on to Intercept X, it integrates into the same console with multi-tenant support, requiring no separate infrastructure. While not as advanced as other tools, it’s a practical, cost-effective XDR option.
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Trend Micro Vision One: Trend Micro’s Vision One is a purpose-built XDR platform integrating data from endpoint (Apex One), email (HES), network (IPS/NDR), and cloud workloads. Vision One’s dashboards correlate incidents, such as phishing emails linked to endpoint malware, and support cross-source threat hunting. Trend also offers managed XDR services for additional support. It provides broad coverage with a simpler deployment and lower cost than some high-end XDR solutions, making it a practical choice for MSPs seeking a balanced approach to XDR.
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Microsoft Defender XDR: Microsoft 365 Defender functions as an XDR suite for Microsoft cloud environments, integrating Defender for Endpoint, Office 365, Identity, and Cloud Apps within the Microsoft 365 Defender portal. It also connects with Azure Sentinel (SIEM) for extended log management. For MSPs managing Microsoft 365/Azure clients, this provides powerful, built-in security—often already included in licensing. It correlates signals, such as linking a risky sign-in to malware on a device.
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Fortinet FortiXDR: Fortinet’s FortiXDR integrates FortiEDR, firewalls, and network security under its Security Fabric, using AI-driven analytics for automated threat detection and response. It correlates threats across endpoints, networks, and cloud environments, reducing manual workload for MSPs. Ideal for those already using Fortinet solutions, it simplifies security management with automated triage and response. Fortinet’s MSP partner program provides multi-client management support.
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Cisco XDR: Launched in 2023, Cisco XDR unifies Secure Endpoint, network, email, identity, and cloud security into a single platform. It automates threat correlation using machine learning and integrates with Cisco’s security tools and third-party solutions. Designed for MSPs and enterprises, it enables real-time detection and automated response. Cisco’s MSP partner program offers resources for multi-tenant security management.
Picking an XDR Platform? Key Questions to Ask
1. Coverage & Detection Capabilities
- What data sources does the XDR platform integrate with (endpoints, email, cloud, network, identity)?
- Does it provide pre-built detection rules, or will my team need to fine-tune alerts?
- How well does it correlate threats across different security layers?
2. Integration & Vendor Lock-in
- Is this a single-vendor XDR, or does it support third-party integrations?
- Can it ingest logs from our existing security stack (firewalls, SIEM, email security, cloud apps)?
- If we switch tools (e.g., a different firewall or email provider), will this XDR still work?
3. Multi-Tenancy & MSP Features
- Does it offer a multi-tenant dashboard for managing multiple clients?
- Are there role-based access controls for different team members?
- How easy is it to onboard new clients and customize policies per client?
4. Automation & Response
- What automated response actions are available (e.g., isolate devices, reset accounts, block network traffic)?
- Can we create custom playbooks for automated remediation?
- How does it handle false positives—does it require constant tuning?
5. Cost & Licensing
- Is pricing based on endpoints, data volume, or a bundled model?
- Does it require additional licenses for features like email security, identity protection, or SIEM integration?
- Are there long-term storage costs for security logs?
6. Deployment Complexity & Overhead
- How long does setup typically take?
- What components must be deployed (endpoint agents, sensors, API integrations)?
- Can small teams manage deployment, or will professional services be required?
7. Managed vs. DIY XDR
- Does the vendor offer a Managed XDR service for 24/7 monitoring and response?
- If we self-manage, what training and certifications are available?
- How much security expertise is required to use this effectively?
8. Reporting & Compliance
- Does the platform provide compliance reports (e.g., HIPAA, PCI, SOC 2)?
- Can we generate custom reports for clients?
- How does it log and store security events for audit purposes?
9. Scalability & Future Growth
- Can we enable additional features over time, or must everything be purchased upfront?
- How well does it scale for larger clients or those with complex environments?
- Does the vendor have a roadmap for expanding XDR capabilities?
10. Vendor Support & Ecosystem
- What level of support is included—chat, phone, or dedicated account management?
- Does the vendor provide threat intelligence feeds and ongoing updates?
- Are there partner incentives or discounts for MSPs?
Summary
XDR offers advanced detection and response, providing MSPs with broad visibility and automated correlation across environments. It delivers enterprise-grade security without requiring a full SIEM, but adds complexity and cost. XDR is best for MSPs that are focused on selling cybersecurity services and are ready to unify their security stack. If you’re still mastering EDR, XDR may be overwhelming. But if you already manage multiple security tools, it can simplify operations to consolidate things down to one XDR platform.
In short, XDR strengthens security but requires the right expertise. Adopt it strategically to enhance, not overburden, your operations.
Images: iStock
