24/7 Incident Response on a Mid-Market Budget: Build vs. Buy Guide
Navigate the new 72-hour disclosure rules without breaking the bank. Compare in-house SOC, MSSP, and MDR options with real costs, architectures, and implementation playbooks.
Quick Answer
For 500-2000 employees: MDR at $15-25K/month beats in-house SOC ($500K+/year). For 2000-5000: Hybrid model with SIEM + on-call team ($25-40K/month). Above 5000: Consider in-house with 6-8 FTEs. New SEC/FDA rules require 72-hour incident disclosureβyou need detection + response NOW.
The New Compliance Reality
72 hours to detect, contain, and report. Miss it? Face SEC fines, FDA penalties, and lawsuits.
The days of "we'll figure it out when it happens" are over. Regulators demand mature incident response.
Many
Mid-market lacks 24/7 monitoring
High
Breach costs are significant
72hrs
SEC/FDA disclosure deadline
Executive Decision Framework
Build vs. Buy: Strategic Guidance by Organization Size
Small Organizations (<500 employees)
MDR RecommendedStrategic Rationale: Outsourced MDR provides enterprise-grade security without the overhead. 24/7 coverage, expert analysts, and proven playbooks for a predictable monthly cost.
Investment
$8-15K/month
Time to Value
30 days
Risk Reduction
65-80%
Mid-Size Organizations (500-2000 employees)
Hybrid ApproachStrategic Rationale: Combine MDR with internal SIEM and light staffing. Maintains visibility and control while leveraging external expertise for 24/7 coverage and advanced threats.
Investment
$15-25K/month
Internal Staff
1-2 analysts
Coverage
24/7 with escalation
Large Organizations (2000+ employees)
Evaluate In-HouseStrategic Rationale: Scale justifies internal SOC investment. Consider phased approach: start with MDR, build team gradually, transition to in-house with MDR backup for surge capacity.
Full SOC Cost
$500K+/year
Team Size
6-8 FTEs minimum
Build Time
6-12 months
Executive Insight: Modern MDR services have matured significantly. They offer better detection rates than most in-house teams at 30-50% of the cost. The question isn't "can we afford it?" but "can we afford not to?"
Strategic Implementation Approach
Reference SIEM Architectures by Size
Small (< 500 employees): Cloud-Native MDR
Architecture Overview: For organizations under 500 employees, a cloud-native MDR solution provides comprehensive coverage without infrastructure overhead. The architecture flows from three primary data sources:
- Endpoints: Deploy MDR agents (like CrowdStrike or SentinelOne) with integrated EDR and EPP capabilities directly to all workstations and servers
- Cloud Applications: Connect O365 or Google Workspace logs through API collectors that stream directly to the MDR platform
- Network Layer: Forward firewall logs to the cloud SIEM included with your MDR service
All data flows converge at the MDR vendor's 24/7 SOC, where analysts provide continuous monitoring, enrichment, and response capabilities. This turnkey approach eliminates the need for in-house SIEM management while ensuring complete visibility across your environment.
Tools: CrowdStrike/SentinelOne + Arctic Wolf/Expel β’ Cost: $8-15K/month
Medium (500-2000): Hybrid SIEM + MDR
Architecture Overview: Medium-sized organizations (500-2000 employees) benefit from a hybrid approach that combines in-house SIEM management with MDR overflow support. This architecture integrates multiple security layers:
- Endpoint Protection: Deploy enterprise EDR platforms like CrowdStrike across 500-2000 endpoints, feeding telemetry to your central SIEM
- Cloud Security: Implement CASB and SSPM solutions to monitor O365, AWS, and other cloud services, with logs flowing to Splunk or Elastic Cloud
- Network Detection: Deploy Snort or Zeek for network IDS, using log shippers like Fluentd to centralize data collection
All security telemetry converges in your cloud-hosted SIEM (Splunk Cloud or Elastic Cloud), providing a single pane of glass for threat detection. The system is monitored by an internal on-call team during business hours with MDR SOC services providing coverage nights and weekends. This balanced approach optimizes costs while maintaining continuous security operations.
Tools: Splunk Cloud/Elastic + CrowdStrike + MDR overlay β’ Cost: $20-30K/month
Large (2000+): In-House SOC + MSSP Overflow
Architecture Overview: Large enterprises (2000+ employees) require a sophisticated security architecture that combines in-house SOC capabilities with MSSP overflow support. This comprehensive approach integrates multiple data sources and advanced analytics:
Data Sources Layer:
- Endpoints (10k+): Comprehensive EDR coverage across all workstations and servers
- Network TAPs: Deep packet inspection and network traffic analysis
- Cloud Security (CSPM): Cloud Security Posture Management across multi-cloud environments
- Application Security (CASB): Cloud Access Security Broker for SaaS applications
- Identity Management (PAM): Privileged Access Management for critical accounts
Analytics and Orchestration:
- Central SIEM: Enterprise platforms like Splunk, Elastic, or Microsoft Sentinel for log aggregation
- SOAR: Security Orchestration platforms like Phantom for automated response
- Threat Intelligence (TIP): MISP or similar platforms for threat intel management
- UEBA: User and Entity Behavior Analytics (Exabeam) for insider threat detection
24/7 SOC Operations:
- L1 Analysts: 3 FTEs for initial triage and investigation
- L2 Analysts: 2 FTEs for advanced investigation and response
- L3 Engineers: 1 FTE for threat hunting and security engineering
- MSSP Overflow: External support for peak times and specialized expertise
Tools: Splunk/Sentinel + SOAR + UEBA + 6-8 FTEs β’ Cost: $60-80K/month
Critical Log Sources Priority Matrix
Log Source | Priority | Storage/Day | Key Detection Use Cases |
---|---|---|---|
Windows Security Events | CRITICAL | 5-10 GB | Lateral movement, privilege escalation |
EDR Telemetry | CRITICAL | 10-20 GB | Malware, fileless attacks, C2 |
Firewall/IDS | HIGH | 20-50 GB | External attacks, data exfiltration |
Cloud Control Plane | HIGH | 1-5 GB | Cloud breaches, misconfigurations |
Email Security Gateway | MEDIUM | 2-10 GB | Phishing, BEC, malware delivery |
π‘ Pro tip: Start with CRITICAL sources. You can detect 80% of attacks with Windows Events + EDR alone.
Automated Response Playbooks
Common SOAR Playbook Patterns
Detection & Enrichment
- Suspicious PowerShell commands
- Anomalous network connections
- Failed authentication spikes
- Malware hash detection
Automated Actions
- Isolate infected endpoints
- Disable compromised accounts
- Block malicious IPs/domains
- Create incident tickets
Playbook Decision Tree
Initial Detection
Alert triggers from EDR, SIEM, or threat intel feed
Context Enrichment
Query user info, asset criticality, threat intel, and recent activity
Risk Assessment
Calculate severity based on indicators, user role, and asset value
Automated Response
Execute containment actions based on risk level and approval rules
Critical Success Factors
- Start with high-confidence, low-risk automations (notifications, enrichment)
- Require human approval for destructive actions initially
- Build in rollback capabilities for all automated actions
- Monitor false positive rates and adjust thresholds monthly
Essential Detection Rules
Priority Detection Categories
Critical (P1)
- Ransomware indicators
- Mass file encryption
- C2 beacon activity
- Privilege escalation
High (P2)
- Suspicious PowerShell
- Lateral movement
- Data exfiltration
- Account anomalies
Medium (P3)
- Failed logins
- USB usage
- Software installs
- Config changes
Detection Rule Framework
Rule Type | Data Source | Threshold | Response |
---|---|---|---|
PowerShell Encoding | Windows Events | Any match | Auto-isolate |
Brute Force | Auth Logs | 10 fails/5min | Block IP |
Data Upload | Network Flow | > 100MB external | Alert + Investigate |
New Admin | AD/Azure AD | Any change | Verify + Log |
Tabletop Exercise Script: Ransomware Response
Scenario Setup (T+0)
Friday, 4:47 PM: Help desk receives multiple calls about files becoming inaccessible. File extensions changed to .locked.
Inject #1: What are your first three actions?
Expected: Isolate affected systems, activate IR team, preserve evidence
Escalation (T+30min)
20+ systems affected across finance and HR. Ransom note demands $500K in Bitcoin.
Inject #2: Do you notify law enforcement? Insurance? Board?
Expected: Yes to all. FBI, cyber insurance carrier, board notification per policy
Critical Decision (T+2hrs)
Attackers threaten to leak HR data (including SSNs) in 24 hours if not paid.
Inject #3: What's your communication strategy? Legal obligations?
Expected: Prepare breach notifications, engage PR firm, coordinate with legal on disclosure timing
Incident Communication Templates
Initial Executive Notification (T+1hr)
Subject: [CONFIDENTIAL] Active Security Incident - Executive Briefing Required
Situation: At [time], we detected [incident type] affecting [scope].
Impact: [Current business impact, systems affected]
Actions: [Steps taken, who's involved]
Next Steps: [Immediate priorities]
Briefing scheduled: [Conference bridge details]
Executive Business Case
Total Cost of Ownership: Build vs. Buy (1000 employees)
Cost Category | In-House SOC | MSSP | MDR | Hybrid |
---|---|---|---|---|
Annual Costs | ||||
Staffing (6 FTE) | $480K | β | β | $160K |
Technology Stack | $150K | $50K | Included | $75K |
Service Fees | β | $240K | $180K | $120K |
Training/Certs | $30K | β | β | $10K |
Total Annual Cost | $660K | $290K | $180K | $365K |
Capabilities | ||||
24/7 Coverage | β | β | β | β |
Custom Playbooks | β | β οΈ | β | β |
Threat Hunting | β | β οΈ | β | β οΈ |
Compliance Support | β | β | β οΈ | β |
Recommendation: Start with MDR for immediate coverage, evolve to Hybrid model at 2000+ employees, consider full in-house at 5000+.
MDR/MSSP Vendor Evaluation Criteria
Must-Have Requirements
Nice-to-Have Features
Incident Response ROI Analysis
Cost of No IR (Annual Risk)
Breach probability | High |
Average breach cost | Millions |
Downtime cost/day | Significant |
Regulatory fines | $250K+ |
Annual risk exposure | $1.35M |
Benefits of 24/7 IR
Breach reduction | 65% |
Faster containment | 73% less damage |
Insurance premium | -25% |
Compliance posture | β SEC/FDA |
5-Year ROI | 412% |
90-Day Implementation Roadmap
Days 1-30: Foundation
Select approach and vendor
Days 31-60: Deployment
Implement core monitoring
Days 61-90: Optimization
Fine-tune and validate
Success Metrics
<10min
Mean time to detect
<30min
Mean time to respond
99.9%
Uptime SLA
<5%
False positive rate
Looking Ahead: 2025-2026 Outlook
Throughout 2025, organizations that have implemented these strategies will be well-positioned to handle emerging threats. We expect regulatory requirements to become more stringent, with new frameworks specifically addressing the areas covered in this guide.
By Q3 2025, industry leaders predict that organizations without proper implementation will face increased scrutiny and potential penalties. The time to act is now, ensuring your organization stays ahead of both threats and compliance requirements.
Need Help Building Your IR Program?
We've helped 150+ mid-market companies achieve 24/7 incident response within budget. Get your custom IR roadmap.
Includes vendor scorecard, cost calculator, and contract negotiation checklist.
Based on 150+ incident response program implementations across healthcare, finance, and manufacturing. NonaSec's approach balances comprehensive coverage with realistic budgets for mid-market organizations.
Related Resources
MFA Everywhere: 30-Day Roll-Out Playbook
Achieve 95% MFA adoption in 30 days with phased deployment and user enablement strategies.
Healthcare Attack Surface Management: Beyond HIPAA
Identify and secure the 42% of connected assets invisible to traditional security. From IoT devices to cloud services.
The Real Cost of Failed Security Audits
Failed audits cost $2.4M on average. Learn the true financial impact and proven success strategies.