What Is Extended Detection and Response (XDR)?

What Is Extended Detection and Response (XDR)? What Is Extended Detection and Response (XDR)?

Extended detection and response (XDR) is a unified security incident platform collecting threat data from various security tools across your organization’s tech stack. An XDR solution correlates the information from endpoints, cloud workloads, networks, email, and data stores for faster investigation, threat hunting, and response.

All the XDR Capabilities at a Glance

XDR security solutions break down traditional security silos step by step:

  • Data Collection and Normalization. XDR ingests telemetry data from multiple sources, like endpoints, cloud workloads, email, and network traffic. It then makes this data clean and organized for easy analysis.
  • Parsing and Correlation. In-build machine learning (ML) and artificial intelligence (AI) automatically find connections between alerts and attacks. This helps quickly spot cyber threats, much faster than doing it by hand.
  • Incident Management. XDR decides which security problems are most important and gives context. This helps security teams quickly respond to the biggest threats. It can also automatically take action, like stopping infected devices.
  • Threat Prevention. Some XDR systems provide threat intelligence to understand the risks to your company. This helps security teams stop attacks before they happen.

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Cyber Security XDR Benefits

In a nutshell, your organization gets unified and streamlined security analysis, investigation, and remediation:

  • Better Visibility. With data from endpoints, identities, emails, cloud applications, and more, security teams gain a comprehensive view of potential threats that might otherwise go unnoticed.
  • Faster Threat Detection and Response. Real-time identification of cross-domain threats and automated responses help limit an attacker’s access to sensitive data and systems. Managed SIEM services can further refine detection and response strategies.
  • Simplified Security Operations. Automatic correlation of alerts reduces noise, minimizes manual investigations, and improves log management while cutting down on false positives.
  • Lower Complexity and Costs. A consolidated platform reduces reliance on multiple security tools, making investigations and responses more efficient and cost-effective.
  • Smarter Incident Prioritization. High-risk incidents are highlighted for immediate attention, with recommendations aligned to industry regulations and specific business needs.
  • Stronger SOC Insights. AI-driven automation helps security teams stay ahead of advanced threats. With cloud-based solutions, you can scale quickly to meet evolving cybersecurity challenges and your managed SOC can provide additional expert support when needed.
  • Increased Productivity. Automating routine tasks and enabling asset self-healing frees up analysts for more critical work. Centralized management tools enhance efficiency by improving alert accuracy and reducing the number of systems analysts need to navigate.

XDR Strategy: How to Implement an XDR

First, look at your network, data, and compliance rules. Then, set clear goals that fit your budget and team skills. Choose an XDR system with AI and good support. Make sure it works with your current tools.

Next, plan how to set up and run the XDR system. Decide who will do what. Figure out how to connect it to your current systems. Also, plan for data storage and how you’ll handle alerts. Roll out the system in stages to avoid problems. Test it on a few devices first. Then, run test scenarios to make sure it works well.

Finally, train your team to use the XDR system. Fill any skill gaps. Keep checking the system’s performance. Adjust rules and plans as needed. This ensures your XDR strategy stays effective against new threats.

ROI From XDR: Self-Managed vs. Managed

The realized ROI from XDR can vary drastically depending on how it’s implemented. XDR architecture requires skilled security professionals to fine-tune it and respond to incidents. No matter what type of business you are in, if you don’t have an in-house security team you may face challenges in setting up your extended detection and responce. In this cases, you can drive optimal value if engage a third-party team.

High (staff salaries, training, maintenance, updates)

Predictable (monthly or annual fees, including support and updates)

High (requires skilled security professionals for setup, tuning, and incident response)

Lower (provider handles setup, tuning, and incident response)

Longer (requires time for implementation, configuration, and training)

Shorter (faster deployment and immediate access to expert resources)

Can be complex and costly to scale

Easier to scale based on subscription model.

Requires significant internal resources, potentially diverting focus from core business activities

Allows organizations to focus on core business activities while outsourcing security

Higher potential ROI if effectively managed, but also higher risk of lower ROI if not properly implemented and maintained

More predictable ROI with lower risk, as the provider assumes responsibility for security outcomes

Retail software firm gets most of their XDR after fine-tuning:
70+ insecure XDR exclusions fixed

Increased ROI from XDR after fine tuning - view case studyIncreased ROI from XDR after fine tuning - view case study

How to Overcome XDR Challenges With an MDR 

Managed Detection and Response (MDR) solves the common concerns related to extended detection and response. It’s one of the ways to effortlessly reduce the risk for teams.

MDR feature addressing this challenge

Complexity in managing multiple security tools. XDR platforms often require extensive customization and tuning to work effectively with an organization’s security stack.

Seamless integration with existing security tools. Automated MDR simplifies this by integrating with existing tools, enriching raw data into actionable insights, and reducing the operational burden on security teams.

Overwhelming alert volume leading to alert fatigue. Traditional XDR solutions can generate a high number of alerts, requiring manual triage

Automated incident response through predefined playbooks. MDR’s automated incident response ensures that critical alerts are enriched with relevant data and handled swiftly, reducing noise and ensuring that security teams focus on high-priority threats.

Delayed threat response due to manual processes. While XDR provides deep visibility, responding to threats still requires manual intervention

On-demand threat hunting and automated containment. MDR accelerates response times by enabling rapid threat hunting and automating containment actions, ensuring threats are neutralized before they escalate.

Limited external risk assessment capabilities. Many XDR solutions focus on internal telemetry but lack robust external threat monitoring.

Continuous external risk assessment and proactive vulnerability scanning. MDR enhances security by continuously scanning for vulnerabilities and external threats, allowing companies to address security gaps before they are exploited.

Compliance management complexity. Ensuring compliance with industry standards requires constant monitoring and adjustments.

Compliance automation with CIS benchmarking. MDR automates compliance checks across cloud environments, reducing the manual effort needed to maintain security best practices.

XDR Solutions: How Do They Differ? 

The extended detection and response market is competitive, with various providers offering different solutions. Here are some leading platforms and tools:

  • Microsoft XDR. Microsoft XDR is a unified security incident platform that uses AI and automation. It integrates detection, investigation, and response capabilities across an organization’s endpoints, identities, cloud applications, email, and data.
  • Palo Alto XDR. Palo Alto XDR, also known as Palo XDR, delivers comprehensive threat detection and response across endpoints, networks, and clouds. It uses AI and machine learning to automate threat analysis and accelerate incident response.
  • CrowdStrike Falcon Insight XDR. CrowdStrike’s XDR solution unifies detection and response across your security stack, integrating telemetry into a single command console for unified detection and response.

Who Needs Extended Detection and Response

The specific type of XDR that is best suited for each company type can vary. 

  • Large enterprises with complex IT environments and a wide range of security tools value XDR’s ability to combine data from all their security tools.
  • While a dedicated XDR tool might be overkill for some SMBs, MDR providers can often leverage similar technologies and their expertise to deliver comparable threat detection and response capabilities even without a full XDR deployment at the client’s site. 
  • Companies with strong security teams can use XDR directly to customize their protection and maintain greater control over their security environment.
  • Industries like healthcare and finance use XDR to get comprehensive visibility and meet rules.

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1. How XDR is different from EDR?

EDR (Endpoint Detection and Response) focuses solely on endpoints, while XDR stends for Extended Detection and Response and, accordingly, extends protection across multiple domains like networks, cloud, and email. XDR provides a broader view and more comprehensive threat detection.

2. Is XDR a replacement for SIEM?

XDR and SIEM (Security Information and Event Management) serve different purposes. XDR offers automated detection and response, while SIEM provides log management and compliance reporting. They can be complementary, with XDR feeding enriched data into a SIEM.

3. What skills are needed to manage an XDR solution?

Managing an XDR solution requires skills in threat analysis, incident response, and familiarity with various security tools and technologies. Expertise in AI and machine learning is also beneficial.

4. How much does an XDR solution cost?

The cost of an XDR solution varies depending on the vendor, features, and deployment model (in-house vs. as a service). Subscription-based models are common, with pricing based on the number of users or endpoints..

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