How to Choose an MDR Provider: A Practical Guide
A comprehensive guide to evaluating and selecting the right Managed Detection and Response provider for your organization.
Understanding MDR
Building 24/7 security operations in-house requires 4-10 analysts at $120-150K each, plus tools and training. Most organizations find it more practical to outsource this to MDR providers who offer expert analysts, round-the-clock coverage, and immediate response capabilities.
MDR exists because modern security is complex: your EDR generates thousands of alerts daily, cloud tools speak different languages, and attackers move faster than most internal teams can respond. MDR providers handle this complexity, but their approaches vary dramatically.
Key Differences Between Providers
Active Response vs Alert Forwarding
The critical distinction is whether providers take action or just notify you. When they detect ransomware at 3 AM, do they immediately isolate the infected system and terminate malicious processes, or do they send an email for you to handle in the morning? Both call themselves "incident response" but deliver vastly different value.
Questions to ask: What specific actions can you take without approval? How fast is your mean time to containment? Who has authority to isolate systems outside business hours?
Real Costs and Pricing Traps
A "500 endpoint" environment costs anywhere from $8K to $35K monthly depending on the pricing model. Watch for hidden costs: dev environments counting as production, cloud workloads billed separately, Office 365 requiring extra licenses, and data overage charges during incidents when you need help most.
Essential: Get three-year pricing with growth scenarios. Ask what happens when you add cloud workloads or double in size.
Coverage Beyond Endpoints
Base MDR typically covers endpoints only. Cloud infrastructure, SaaS apps, network traffic, and identity systems cost extra—often $5-15K more per month. Since attackers target your entire environment, limited coverage means limited protection.
Analyst Quality
If 200 analysts cover 5,000 customers, nobody knows your environment well. Ask how many analysts will actually learn your infrastructure. With 25-50% annual turnover, also ask about knowledge transfer processes.
Evaluating Providers
Request a 30-day Proof of Value in your actual environment instead of watching demos. Providers who refuse POVs may have limitations they're not sharing.
Critical questions:
- "Show me threats you've detected beyond standard EDR alerts"—tests their actual detection capabilities
- "Walk through your last major incident response"—reveals real experience vs marketing claims
- "What's my maximum monthly bill in a worst-case scenario?"—uncovers all hidden costs
For references, ask about unexpected costs, actual response times during incidents, and why they've considered switching.
Making Your Decision
Red flags:
- Contracts over 3 years
- Pricing only available under NDA
- "AI handles everything" claims
- Sales knows more than technical team
Start with endpoints and business hours coverage. After six months of proven performance, expand to 24/7 and cloud monitoring. This minimizes risk and cost.
The essential questions:
- Will they stop attacks automatically or just notify you?
- Can you afford year three after growth?
- Do they work with your existing tools?
Note: Providers claiming 90% alert reduction are usually just filtering. Ask what happens to the remaining 10%—those are often the critical ones.
About This Guide
Research & Analysis: This guide was compiled by the MDRProviders.io research team through analysis of publicly available information, vendor documentation, industry reports, and expert insights from cybersecurity professionals.
Last Reviewed: October 2025
Verification: Information is based on publicly available sources and industry best practices. Always verify details directly with providers before making purchasing decisions.
MDRProviders.io is an independent directory service. We do not receive compensation for inclusion or placement in our buyer's guide. Our goal is to help organizations make informed decisions about MDR services.