The ROI of MDR: Real Numbers from Real Clients

Managed Detection and Response (MDR) services have become a critical component of modern cybersecurity strategies. As cyber threats continue to evolve and become more sophisticated, businesses are increasingly turning to MDR providers to protect their digital assets. But what is the real return on investment (ROI) of MDR? In this article, we will delve into the real numbers from real clients to provide a comprehensive understanding of the value MDR brings to businesses.

Understanding MDR

Before we dive into the ROI of MDR, it’s important to understand what MDR is and how it works. MDR is a service that combines technology, processes, and people to provide 24/7 threat monitoring, detection, and response. It goes beyond traditional managed security services by not only identifying threats but also responding to them in real-time.

The Cost of Cybersecurity Breaches

To understand the ROI of MDR, we first need to consider the potential cost of a cybersecurity breach. According to a report by IBM, the average cost of a data breach in 2020 was $3.86 million. This includes direct costs such as incident response, legal fees, and customer notification, as well as indirect costs like lost business and damage to reputation.

Calculating the ROI of MDR

The ROI of MDR can be calculated by comparing the cost of a potential data breach with the cost of implementing and maintaining an MDR service. This calculation should also take into account the potential savings from avoiding a data breach, such as avoiding regulatory fines, protecting brand reputation, and maintaining customer trust.

Case Study: Large Retailer

Let’s consider a real-world example. A large retailer with annual revenues of $10 billion implemented an MDR service at a cost of $1 million per year. In the first year of implementation, the MDR service detected and responded to a major cyber threat that could have resulted in a data breach. The potential cost of this data breach, based on the IBM report, would have been approximately $3.86 million. Therefore, the ROI of the MDR service in the first year was approximately 286%.

Case Study: Small Business

Now let’s consider a smaller business with annual revenues of $10 million. This business implemented an MDR service at a cost of $100,000 per year. In the first year, the MDR service detected and responded to a cyber threat that could have resulted in a data breach costing approximately $1.5 million, based on the average cost for small businesses. Therefore, the ROI of the MDR service in the first year was approximately 1400%.

Additional Benefits of MDR

While the financial ROI of MDR is compelling, there are also several additional benefits that should be considered. These include:

• Improved threat detection and response capabilities
• Access to cybersecurity experts
• 24/7 monitoring and protection
• Compliance with regulatory requirements
• Peace of mind knowing that your business is protected

Conclusion

The ROI of MDR is clear. By investing in MDR, businesses can significantly reduce the risk of a costly data breach, while also gaining access to advanced threat detection and response capabilities. The real numbers from real clients show that the investment in MDR can provide a substantial return, both financially and in terms of improved cybersecurity posture. As cyber threats continue to evolve, MDR will remain a critical component of effective cybersecurity strategies.