Co-Managed Security Services (SOC, MDR, XDR, EDR)

Cybersecurity threats are growing in complexity and frequency, placing immense pressure on organizations to maintain constant vigilance. Security decision-makers are expected to defend against targeted attacks, meet compliance mandates, and demonstrate resilience, all while managing limited budgets and scarce cybersecurity talent.

This is why co-managed security services - especially those involving Security Operations Centers (SOC), Managed Detection and Response (MDR), Extended Detection and Response (XDR), and Endpoint Detection and Response (EDR) - are becoming the preferred choice for organizations seeking to strengthen their defenses without relinquishing oversight. Understanding how these services differ, complement one another, and integrate with existing teams is critical for businesses aiming to make informed cybersecurity investments.

What Are Co-Managed Security Services?

Co-managed security services represent a collaborative model where internal IT or security teams work alongside external security experts to monitor, detect, and respond to threats. Unlike fully outsourced managed security services, co-managed arrangements allow organizations to retain control and visibility over their security environment while benefiting from the expertise, tools, and 24/7 coverage provided by a partner.

The concept originated as organizations and managed service providers realized that neither fully in-house nor fully outsourced models could adequately address the growing sophistication of cyber threats, but that building fully in-house options were cost prohibitive. Co-managed SOCs, MDR, XDR, and EDR services blend the strengths of both approaches. Internal teams remain engaged in critical decisions and incident response, while external providers supply the technology, threat intelligence, and around-the-clock monitoring needed to identify and contain threats quickly.

Organizations are increasingly seeking co-managed options for several reasons: the ongoing shortage of skilled cybersecurity professionals, the cost of hiring 24/7 cybersecurity staff, the need for continuous monitoring, and the desire to maintain internal knowledge of their own systems. Co-managed security monitoring delivers 24/7 visibility, rapid escalation, and shared responsibilities, helping organizations stay ahead of adversaries without losing autonomy.

Key Features and Components of Co-Managed Security Services

Co-managed security services are defined by several key components that work together to deliver effective protection and operational efficiency:

Co-managed SOC: Internal security teams and external experts collaborate across the incident response cycle, with the internal team typically owning the prevention and remediation steps, while the external team monitors, triages, responds and performs mitigative action against threats. This partnership allows the organization to benefit from expert, external threat intelligence while still controlling their own environment.
Co-managed MSS: Managed Security Services (MSS) are delivered with oversight and input from the client’s own IT staff, allowing for tailored alerting, policy management, and incident workflows.
Co-managed MDR: Managed Detection and Response services combine automated detection tools with human analysis. The co-managed model allows the internal team to participate in investigations, containment, and remediation decisions.
XDR and EDR Integration: Extended Detection and Response (XDR) and Endpoint Detection and Response (EDR) technologies are integrated to provide security coverage across endpoints, networks, cloud workloads, and email, correlating data for faster threat identification.
Co-managed Security Monitoring: 24/7 monitoring and alerting balance automated tools with human oversight, reducing false positives and ensuring that critical incidents receive immediate attention.
Collaboration Model: Duties are clearly divided between the internal IT team and the external provider, with clear communication channels, and agreed-upon escalation paths for incidents.

This structure allows organizations to benefit from the latest security tools and expertise while maintaining involvement in key security decisions.

SOC, MDR, XDR, and EDR: Definitions

Understanding the distinctions between SOC, MDR, XDR, and EDR is essential for selecting the right mix of services. Each plays a distinct role in the security stack, with specific capabilities and requirements.

Definitions:

SOC (Security Operations Center): A centralized team responsible for monitoring, detecting, analyzing, and responding to cybersecurity incidents. An organization might have an in-house SOC, or partner with an outside organization for SOC services.
EDR (Endpoint Detection and Response): Software deployed on endpoints (laptops, desktops, servers) that collects telemetry, detects threats, and supports investigation and remediation at the endpoint level.
MDR (Managed Detection and Response): A service that provides outsourced or co-managed monitoring, detection, and response, leveraging EDR tools and expert analysts to deliver 24/7 protection.
XDR (Extended Detection and Response): A security solution that aggregates and correlates data from multiple sources—endpoints, networks, cloud, and email—to provide unified visibility and coordinated response across the environment.

How They Work Together

EDR provides granular visibility at the endpoint but requires skilled staff to interpret and respond to alerts. MDR builds on EDR by offering 24/7 monitoring and expert response, reducing the burden on internal teams. XDR extends detection and response beyond endpoints, correlating data across multiple domains for faster, more accurate threat identification. The SOC acts as the hub for monitoring and response, whether internal, outsourced, or co-managed, tying together these tools and services.

Co-Managed SOC vs. Fully Managed SOC: Benefits and Challenges

The decision between co-managed and fully managed SOC services depends on factors such as internal expertise, budget, compliance needs, and desired level of control.

Co-Managed SOC-as-a-Service

A co-managed SOC service allows organizations to retain hands-on involvement in security operations while benefiting from external support. Internal teams collaborate with vendor analysts, sharing responsibility for event monitoring, investigation, and response. This model is attractive to organizations that want to maintain institutional knowledge, customize security processes, and have the flexibility to address unique business requirements.

Fully Managed SOC-as-a-Service

A fully managed SOC service is provided entirely by a third party, with minimal involvement from the client’s internal team. The provider handles monitoring, detection, and response, delivering reports and recommendations as needed.

Integrating MDR, XDR, and EDR with Existing Security Infrastructure

Successfully deploying co-managed security services depends on their ability to work with existing security tools, processes, and environments.

MDR providers often integrate with Security Information and Event Management (SIEM) systems, Security Orchestration, Automation and Response (SOAR) platforms, and endpoint protection tools. XDR solutions aggregate telemetry from endpoints, network devices, cloud workloads, and email systems, correlating data for unified threat detection. EDR focuses on endpoint data but can feed alerts and telemetry to SIEMs for further analysis.

Technical integration typically involves deploying agents on endpoints, connecting to log sources, and establishing secure data flows to the provider’s monitoring environment.

Automation capabilities are central to these integrations. For example, SOAR platforms can trigger automated response playbooks based on alerts from EDR or XDR tools, reducing response times and minimizing manual intervention. Threat hunting processes are supported by shared dashboards and search interfaces, allowing both internal and external analysts to investigate suspicious activity.

Cost Considerations and Resource Implications

Selecting between EDR, MDR, XDR, and SOC models involves weighing both direct costs and the impact on internal resources.

EDR is typically licensed per endpoint, with costs scaling based on the number of devices. While EDR tools are less expensive than managed services, they require skilled staff to monitor alerts, investigate incidents, and maintain the system. Organizations with limited internal resources may struggle to keep up with the volume of alerts, leading to missed threats.

MDR services carry higher costs, often structured as monthly subscriptions based on the number of endpoints or data sources. This investment covers 24/7 monitoring, expert analysis, and incident response, reducing the need for in-house staff. MDR providers often demonstrate improvements in mean time to detect (MTTD) and mean time to respond (MTTR), helping organizations contain threats before they escalate.

XDR platforms are generally the most expensive, reflecting their broader scope and data integration. Licensing may be based on data volume, number of sources, or a combination. The benefit lies in unified threat detection and response across all monitored domains, reducing the risk of lateral movement and undetected breaches.

Co-managed SOCs require some internal staffing to collaborate with the external provider, but this model can be more cost-effective than building a 24/7 in-house team. Organizations can allocate resources to business-specific security functions while relying on the provider for monitoring and escalation.

Operational expenses, such as training, tool maintenance, and compliance reporting, are reduced with managed services. Outsourcing detection and response allows organizations to focus on strategic initiatives, while still meeting regulatory requirements.

How Co-Managed Security Services Support Compliance and Regulatory Requirements

Meeting compliance mandates is a top priority for many organizations, especially those in regulated industries such as healthcare, finance, and government.

Co-managed SOCs and MDR services provide continuous monitoring, incident detection, and response processes that align with frameworks such as the General Data Protection Regulation (GDPR), Health Insurance Portability and Accountability Act (HIPAA), Payment Card Industry Data Security Standard (PCI DSS), and others. These services support audit readiness by maintaining detailed logs, incident records, and response documentation.

SIEM tools integrated with co-managed services offer log management, retention, and reporting features required by many regulations. Automated reporting and audit trails simplify evidence collection during compliance assessments.

Transparency and governance are strengthened in co-managed environments. Organizations retain visibility into security events, participate in incident investigations, and maintain control over remediation actions. Managed detection and response solutions often include policy enforcement, automated compliance checks, and structured reporting, helping organizations demonstrate due diligence and meet regulatory obligations.

Providers also offer guidance on security governance, helping clients align processes with industry standards, document incident response procedures, and prepare for audits. The co-managed model supports both operational security and compliance, reducing the risk of fines and reputational damage.

Benefits and Use Cases of Co-Managed Security Services

Co-managed security services deliver a blend of external expertise and internal control that is particularly attractive to organizations seeking to strengthen their security posture without losing oversight. By partnering with a provider, businesses gain access to enterprise-grade monitoring, threat intelligence, and incident response capabilities—resources that would be costly and time-consuming to develop in-house. This model allows organizations to tailor security operations to their unique environment, ensuring that internal teams remain engaged in critical decisions while benefiting from the provider’s experience and 24/7 vigilance.

In practice, co-managed SOCs deliver proactive threat detection by correlating data from multiple sources and escalating incidents to internal teams with clear, actionable recommendations. This approach enables faster containment and remediation, reducing the dwell time of attackers and minimizing business impact. Co-managed MDR services combine AI-driven detection with human analysis, allowing organizations to respond to emerging threats—such as ransomware or supply chain attacks—before they spread. For businesses subject to regulatory scrutiny, co-managed MSS arrangements support compliance by automating reporting, maintaining audit trails, and providing documentation required for regulatory assessments.

Industries across the spectrum benefit from this model. Healthcare organizations use co-managed security to safeguard patient data and meet HIPAA requirements, while financial institutions rely on it to protect transactions and comply with PCI DSS. Mid-sized businesses, which often lack dedicated security teams, can access professional-grade security operations without the overhead of building a full SOC. Co-managed security monitoring delivers round-the-clock protection for hybrid, cloud, and distributed environments, closing coverage gaps and ensuring that no threat goes unnoticed, regardless of time zone or staff availability.

Challenges and Considerations When Adopting Co-Managed Security Services

Implementing co-managed security services presents several considerations that organizations must address to achieve the desired outcomes. One of the primary challenges is the need to clearly define roles and responsibilities between internal teams and the external provider. Without well-established processes for communication, escalation, and decision-making, incidents may fall through the cracks or response efforts may be delayed. Integration complexity can also arise, particularly when organizations use a variety of security tools from different vendors. Ensuring that data flows smoothly and that alerts are actionable requires careful planning and coordination.

Cost is another factor to weigh. While co-managed services are generally more affordable than building a 24/7 in-house SOC, they may still represent a significant investment, especially for organizations with limited budgets. Balancing the expense of external services with the value of retained internal oversight is a key consideration. Organizations must also ensure that their internal staff remain available and engaged, as the co-managed model relies on collaboration and shared decision-making.

Despite these challenges, co-managed security services help address some of the most pressing issues facing security teams today. The ongoing shortage of cybersecurity talent, high staffing costs, and the risk of alert fatigue are all mitigated by sharing responsibilities with a provider.

Co-managed SOC and MSS solutions are designed to grow with the organization, adapting to changes in size, technology, and risk profile. Providers support this evolution by offering shared dashboards, automated workflows, and playbooks that make day-to-day operations more manageable. While careful planning and ongoing communication are required, the co-managed approach allows organizations to make the most of their existing resources while gaining the benefits of external expertise and 24/7 monitoring.

Industry Trends and Developments in Co-Managed Security Services

Recent years have seen a significant shift in how organizations approach security operations, with co-managed services gaining popularity as a middle ground between fully managed and in-house models. The global shortage of cybersecurity professionals has driven many businesses to seek external support, particularly for SOC, MDR, and XDR services. As the threat landscape evolves, organizations are recognizing that they cannot afford to rely solely on internal teams, especially for 24/7 monitoring and incident response.

AI-powered detection and automated response are becoming central features of co-managed MDR, allowing providers to identify and contain threats more quickly. The adoption of zero-trust security strategies, which require continuous verification and monitoring, has increased demand for co-managed SOC models that can enforce strict access controls and respond to suspicious activity in real time. Providers are also adapting their offerings to deliver stronger compliance support, with features such as automated reporting, audit-ready documentation, and policy enforcement built into their services.

Integration with SIEM and XDR platforms is now a standard expectation, with organizations seeking to connect disparate data sources and gain unified visibility across their environment. Co-managed security monitoring is increasingly being adopted for cloud workloads and hybrid infrastructures, reflecting the shift toward remote work and distributed IT systems. This trend is expected to continue as more organizations seek flexible security models that can adapt to changing business needs without sacrificing control or oversight.

The co-managed model is now seen as a pragmatic choice for enterprises looking to balance autonomy with access to external expertise. Providers are investing in real-time intelligence sharing, shared dashboards, and collaborative workflows to make co-managed services more effective and user-friendly. As the market matures, organizations can expect to see even more options tailored to specific industries, compliance requirements, and technology environments.

Co-Managed Security Services and SonicWall

SonicWall has a long history of providing security solutions that help organizations protect their networks, endpoints, and cloud assets. In the context of co-managed security services, SonicWall offers a range of options designed to support collaboration between internal teams and external experts.

SonicWall’s co-managed SOC services allow organizations to monitor their environments around the clock, with internal staff retaining control over incident response and policy management. The company’s co-managed MSS offerings provide managed firewall, intrusion prevention, and secure remote access services, all delivered with input and oversight from the client’s IT team. For organizations seeking MDR capabilities, SonicWall partners with leading providers to deliver managed detection and response services that combine AI-driven threat detection with human analysis.

Integration with XDR and EDR tools is a key strength of the SonicWall portfolio. The company’s solutions collect telemetry from endpoints, network devices, and cloud applications, correlating data to provide unified threat visibility. This approach enables faster detection of lateral movement and coordinated attacks, while shared dashboards and reporting tools make it easy for both internal and external teams to collaborate.

SonicWall’s unique capabilities include tailored escalation processes that allow organizations to define how and when incidents are handed off between teams. Flexible monitoring models support both co-managed and fully managed arrangements, giving businesses the freedom to choose the level of involvement that best suits their needs. Advanced analytics and reporting features help clients maintain compliance with industry regulations, providing the documentation and audit trails required for regulatory assessments.

By partnering with SonicWall, organizations can address resource gaps without losing internal control or visibility. Co-managed security monitoring ensures that threats are detected and contained quickly, while internal teams remain engaged in critical decisions. This approach supports organizations of all sizes, from mid-sized businesses to large enterprises, helping them respond faster to threats and make the most of their security investments.

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