Managed Security Service Provider (MSSP) Pricing (1)

Aug 7, 2024

Managed Security Service Provider (MSSP) Pricing

Cybersecurity is getting more critical than ever as cyber threats grow in complexity and frequency. Businesses of all sizes are turning to Managed Security Service Providers (MSSPs) to safeguard their data and infrastructure. However, understanding the MSSP pricing models can be challenging.

In this article, we’ll break down the key factors that influence costs and help you make informed decisions to protect your organization effectively and efficiently.

MSSP pricing models

When picking an MSSP, consider the cost, the quality of service, and how well it fits your organization’s needs.

MSSP pricing models vary based on the services offered, but they usually fall into a few categories:

Signal (telemetry) oriented:

Per-Device/User: Some MSSPs charge based on the number of devices or users they protect. It is simple to understand and scale as your needs change.
Pay-Per-Incident: MSSPs charge per security incident they handle, which can be helpful if you don’t need constant monitoring.
Per GB / EPS: Pricing is based on the amount of data processed (GB) or events per second (EPS) monitored. This model is useful for organizations with varying data volumes and activity levels.

Budget-oriented

Subscription-Based: Many MSSPs operate on a subscription model, where you pay a set fee each month or year for ongoing service.Flat Fee: This model provides services for a fixed monthly cost and is suitable for businesses with predictable security needs.
Custom Pricing: MSSPs might create a customized pricing plan based on specific services required for larger organizations with complex needs.
Tiered Plans: MSSPs may offer different levels of service at various prices. You choose the plan that best fits your needs and budget.

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What is usually included in the MSSP cost?

The cost of an MSSP typically covers various services to keep your organization’s data and infrastructure secure. Here’s a breakdown of what you can generally expect to be included:

Core Security Services:

Proactive Security Monitoring: 24/7 network monitoring for suspicious activity, threat detection, and incident response initiation.
Log Management and Analysis: Collecting, storing, and analyzing logs from various devices and systems to identify potential security issues.
Vulnerability Management: Regular scans to identify vulnerabilities in your systems and applications, with prioritization and remediation recommendations.
Setting up and Managing Security Information and Event Management (SIEM) toolset: Managing security data, aggregated by SIEM, creating actionable security alerts based on insights, and enhancing threat detection & incident response.
Security Operations Center expertise (SOC): A team of security analysts who monitor your network, analyze threats, and respond to security incidents.

Additional Services (might be included depending on the model):

Patch Management: Automating the process of applying security patches to your systems and applications to keep them up-to-date and secure.
Endpoint Security: Protecting individual devices like laptops, desktops, and mobile phones from malware, phishing attacks, and unauthorized access.
Network Security: Securing the network infrastructure by monitoring and managing firewalls, intrusion detection/prevention systems, and ensuring secure access controls to prevent unauthorized activities and threats.
Security Awareness Training: Educating your employees about cybersecurity best practices to help them identify and avoid threats.
Compliance Assistance: Helping you meet industry-specific security regulations and compliance requirements.
Incident Response and Forensics: Providing guidance and support in the event of a security breach, including investigation, containment, and recovery.

It’s important to note that the specific services included in an MSSP’s cost will vary depending on the provider, the pricing model you choose, and the level of security you need. Some providers may offer additional services as add-ons, so clarify what’s included in the base price before signing up.

What influences the MSSP price?

Several factors influence the pricing of Managed Security Service Providers (MSSPs), including:

Scope of Services: The breadth and depth of services the MSSP offers significantly impact pricing. More comprehensive packages with a wide range of security services will typically cost more than primary offerings.
Service Level Agreements (SLAs): The level of service guaranteed by the MSSP, including response times, uptime guarantees, and service availability, can affect pricing. Higher service levels often come with higher costs.
Size and Complexity of the Organization: The size and complexity of the client organization’s IT infrastructure and security requirements influence pricing. Larger organizations with more extensive networks, endpoints, and data to protect may incur higher costs.
Number of Users/Devices: MSSPs may charge based on the number of users or devices they protect. More users or devices typically result in higher pricing.
Customization and Flexibility: MSSPs offering customized solutions tailored to clients’ needs may charge higher prices. Flexibility in service offerings and the ability to accommodate unique requirements can also impact pricing.
Technology Stack: The technology stack utilized by the MSSP, including the tools, software, and infrastructure, can affect pricing. Advanced, cutting-edge technologies may come with higher costs.
Level of Expertise and Resources: The expertise and experience of the MSSP’s security professionals and the resources dedicated to managing and monitoring security can influence pricing. MSSPs with highly skilled staff and advanced capabilities may command higher prices.
Geographical Location: Regional differences in labor cost, regulatory requirements, and market competition can affect MSSP pricing. MSSPs operating in regions with higher living costs or more stringent regulatory environments may charge higher prices.
Additional Services and Add-Ons: MSSPs may offer additional services or add-ons beyond their standard packages, such as incident response, penetration testing, or security awareness training, which can increase overall pricing.
Contract Duration: The length of the contract term, whether monthly, annually, or multi-year, can impact pricing. Longer-term contracts may offer discounts or incentives compared to shorter-term commitments.

How can MSSP costs be reduced?

Reducing Managed Security Service Provider (MSSP) costs while maintaining adequate security measures requires strategic planning and consideration of several factors. Here are some strategies to help reduce MSSP costs:

Evaluate your organization’s security needs and adjust service levels accordingly to optimize service levels. Focus on essential security services that provide the most value while eliminating or reducing non-critical services.
Consolidate security services with a single MSSP to streamline management and reduce overhead costs associated with managing multiple vendors.
Review your current contract with the MSSP and renegotiate terms based on your organization’s evolving needs. Adjust service levels, contract duration, and pricing structures to optimize costs.
Implement security automation tools and technologies to streamline security operations and reduce manual effort. Automation can improve efficiency and lower operational costs.
Consider migrating security functions to cloud-based platforms and services, which can offer cost savings through economies of scale, pay-as-you-go pricing models, and reduced infrastructure costs.
Invest in cost-effective security technologies that offer robust protection at a lower cost. Conduct a cost-benefit analysis to evaluate different security solutions’ effectiveness and return on investment (ROI).
Continuously monitor and manage the usage of MSSP services to identify optimization and cost-reduction opportunities. Review usage reports regularly and adjust service levels as needed.
Invest in training and development programs for internal staff to build in-house security expertise and reduce reliance on external MSSP services for routine tasks.

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How can UnderDefense elevate your managed security efforts?

By partnering with UnderDefense, you will gain the knowledge and tools to conquer confusion and confidently navigate managed security:

Enhance your understanding of managed security with expert guidance and comprehensive resources.
Get a tailored roadmap outlining your next steps, ensuring nothing is overlooked.
Utilize our state-of-the-art security platform to stay ahead of emerging threats.
Follow a clear, actionable plan crafted specifically for your organization’s unique needs.

About the author

Nazar Tymoshyk

CEO and the mastermind behind UnderDefense

Nazar Tymoshyk, a cybersecurity luminary and founder of UnderDefense, brings over two decades of expertise to the forefront of the industry. With a Ph.D. in Information Security and a commitment to innovation, Nazar is dedicated to revolutionizing cybersecurity practices and making them accessible to businesses worldwide.