The Ultimate Guide to MSSPs vs In-House SOCs: Costs, Benefits, and How to Decide
Cybersecurity threats are escalating, and with them, the stakes for businesses of all sizes. In 2024, nearly a quarter (22%) of businesses fell victim to cyberattacks, and the outlook for 2025 suggests an even higher risk as attackers grow more sophisticated and leverage AI-driven tactics.
So, what’s your best defense? For many businesses, it boils down to a crucial decision: outsourcing your cybersecurity needs to a Managed Security Service Provider (MSSP) or building an in-house Security Operations Center (SOC).
Both approaches have their merits, and the right choice ultimately depends on your specific needs, resources, and long-term goals. Below, we’ll explore the differences between MSSPs and in-house SOCs, the benefits of each, and how to determine the best fit for your business.
What is a Managed Security Service Provider (MSSP)?
A Managed Security Service Provider (MSSP) is an organization that specializes in providing cybersecurity services to other businesses. These services often include continuous monitoring, threat detection and incident response, vulnerability management, and compliance support. MSSPs typically operate on a subscription basis, offering packages tailored to different levels of service and complexity.
MSSPs act as an extension of your security team, providing expertise and resources that may be difficult to develop in-house. Key services include:
- Continuous monitoring, threat intelligence, and detection to monitor your network and systems for suspicious activity or potential breaches.
- Incident response that quickly identifies, addresses, and mitigates security incidents.
- Vulnerability management to proactively identify and address weaknesses in your systems.
- Compliance assistance that helps you satisfy industry best practices and regulatory requirements and prepare for audits.
- Security consulting to improve your overall security posture and processes.
MSSPs are often confused with Managed Service Providers (MSPs), but they have distinct roles and focus areas. While MSPs offer general IT services such as network management, cloud solutions, and help desk support, MSSPs specialize in cybersecurity. Many MSPs partner with MSSPs to provide comprehensive IT and security services, but strong cybersecurity requires specialized skills and tools that go beyond traditional IT support.
Typical MSSP costs
For most organizations, cost is a key factor in deciding to hire an MSSP. MSSPs typically offer flexible pricing, with models designed to fit and scale with your needs. Here’s what you can expect depending on the services you choose:
- Per-device pricing: Costs vary by device type (e.g., printer vs. laptop) and typically include discount tiers for scaling. Typical prices range from $10–$250 per device.
- Per-user pricing: Ideal for businesses needing to secure multiple devices per employee. Costs generally range from $150–$200 per user per month, depending on service level and business type.
- Tier-based pricing: Flat fees for service tiers that bundle cybersecurity, monitoring, and support. Higher tiers may include extras like 24/7 monitoring. Prices range from $100–$300 per user.
- Additional costs: Onboarding and audit preparation may incur extra fees. Clarify these costs with your MSSP to budget appropriately.
- Compliance as a Service (CaaS): To hire an MSSP to help you achieve compliance with a specific framework such as SOC 2, small to medium businesses can expect costs to range from $10,000 to $110,000 depending on the size and complexity of the organization. This price typically includes gap assessments, remediation guidance, and audit preparation. For larger companies, the cost can be significantly higher.
- Continuous monitoring and incident response: For businesses requiring ongoing services like 24/7 monitoring, threat detection, and incident response, MSSP pricing ranges from $2,000 to $5,000 per month for small to medium-sized businesses. Smaller businesses often fall on the lower end, while larger organizations with more complex environments will require more resources and higher costs.
- Consulting services: MSSPs also offer consulting engagements, which can be priced hourly or as fixed-fee projects. Hourly rates average between $150 and $250 per hour depending on the expertise required, while fixed-fee projects typically start at $5,000 and can go up to $20,000 or more for extensive assessments or security strategy planning.
On average, businesses can expect to pay between $3,000 and $30,000 per month for MSSP services. For organizations requiring advanced services such as extended detection and response (XDR) or ongoing compliance management, costs may be higher.
When to hire an MSSP
From small businesses seeking affordable protection to highly regulated industries in need of ongoing compliance support, MSSPs offer a wide range of services tailored to fit diverse cybersecurity needs. While MSSPs aren’t one-size-fits-all, they do shine in scenarios where expertise and scalability are crucial.
Here are some of the key scenarios where outsourcing security makes sense:
SMBs that lack the resources to build an in-house SOC
The upfront costs and ongoing operational expenses of maintaining an in-house SOC can be prohibitive for smaller organizations. By hiring an MSSP, these businesses gain access to enterprise-grade cybersecurity services at a fraction of the cost, allowing them to protect their assets effectively without overextending their budgets.
Companies in highly regulated industries
Organizations in industries like healthcare, finance, or government face complex compliance requirements that can be challenging to navigate without expert guidance. MSSPs bring extensive knowledge of industry regulations and can provide specialized services to help businesses meet frameworks like SOC 2, HIPAA, PCI DSS, CMMC, or GDPR. This makes MSSPs an ideal choice for organizations that need to demonstrate rigorous compliance requirements but lack the in-house expertise to manage it effectively.
Businesses requiring 24/7 security monitoring
The round-the-clock staffing necessary for an in-house SOC is resource-intensive. MSSPs offer 24/7 threat detection and response services, ensuring constant vigilance against cyber threats without requiring a full-time, in-house team. This makes MSSPs an attractive option for organizations that prioritize continuous protection but can’t justify the associated staffing costs.
Organizations seeking scalable security solutions
As businesses grow or face new cybersecurity challenges, MSSPs can quickly adapt their services to meet evolving needs. This scalability ensures that companies can maintain a strong security posture without repeatedly overhauling their internal operations.
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Compliance Outsourcing: New Data Measures the ROI of Compliance Automation and MSSPs
What is a Security Operations Center (SOC)?
A Security Operations Center (SOC) is an in-house team of cybersecurity professionals that monitors and manages an organization’s security posture. A SOC is responsible for identifying, analyzing, and responding to cybersecurity threats in real-time.
Many of the primary functions of a SOC overlap with those of MSSPs, and include:
- Risk assessment and mitigation: Identifying and remediating vulnerabilities within systems and implementing/monitoring security controls to address them
- Threat detection and analysis: Analyzing and monitoring the organization’s cyber threat landscape
- Incident response: Coordinating the organization’s response to security events, and conducting detailed investigations after a security incident or data breach occurs
- Policy development: Creating and enforcing security policies
- Compliance management: Attaining and monitoring compliance with industry and regulatory standards
- Internal audits: Ongoing monitoring and improvement of the company’s security and compliance posture, from deploying regular security patching to updating security processes and policies
SOC analysts are the backbone of a Security Operations Center. They are responsible for monitoring alerts, investigating incidents, and escalating serious threats. SOC analysts typically work in shifts to ensure 24/7 coverage and collaborate with other IT and security teams to maintain organizational security.
Typical SOC costs
Building and maintaining an in-house SOC can be expensive. For organizations weighing this option, understanding the key cost components is essential:
- Staffing: Salaries for security analysts, security engineers, and SOC managers are among the largest expenses. Each role comes with specific expertise and responsibilities, with annual salaries for security specialists averaging $111,052. For example, SOC analysts who monitor systems and respond to alerts earn an average of $96,811 annually, while more senior positions like SOC managers or security architects can command average salaries closer to $150,000. Maintaining 24/7 coverage often requires multiple shifts, significantly increasing staffing costs.
- Infrastructure: Setting up the physical space, hardware, and software tools for a SOC is another significant investment. This includes expenses for secure server rooms, advanced monitoring tools, and software licenses for threat intelligence and incident response platforms. Depending on the size and scope of the SOC, infrastructure costs can range from tens of thousands to hundreds of thousands of dollars annually. For example, a mid-sized organization might spend $50,000 or more per year on software subscriptions alone.
- Ongoing training and certifications: Cybersecurity is a rapidly evolving field, requiring ongoing education to keep the SOC team updated on the latest threats, tools, and techniques. Regular training sessions, certifications, and conferences add to the recurring costs of maintaining an effective cybersecurity team.
When all these factors are combined, the average cost of operating an in-house SOC for a mid-sized organization can range from $1 million to $7 million annually. This total includes direct expenses as well as the costs of recruitment, retention, and operational overhead. While this investment provides complete control and customization, it is a significant financial commitment that must be carefully weighed against your organization’s information security needs and resources.
When to build an in-house SOC
Building an in-house SOC is a major decision, as it requires both substantial initial investment and a long-term commitment. However, there are certain types of organizations where an in-house SOC makes sense:
Large enterprises
Established organizations with the budget and resources to sustain ongoing costs are well-positioned to benefit from an in-house SOC. These organizations often have complex security needs and can justify the expense of hiring, training, and retaining a dedicated security team. Plus, large enterprises are more likely to possess the financial and logistical capacity to invest in the infrastructure and tools required to operate an effective SOC.
Companies with unique security needs
Some companies require full control over their cybersecurity operations, such as companies handling proprietary technology, sensitive intellectual property, or highly confidential customer data. These organizations may prefer to maintain direct oversight of their security posture by building an in-house SOC that gives them full control and alignment between their security operations, business objectives, and risk tolerance.
Organizations with stringent data security requirements
Companies that operate in industries such as healthcare or finance often choose to build their own SOC to address strict regulatory demands. An in-house SOC provides these businesses with the ability to tailor their security strategies and demonstrate compliance with industry-specific standards during audits or assessments.
Recommended reading
5 Security Operations Center Best Practices to Enhance Visibility Into Risk and Compliance
How to decide which cybersecurity approach is right for your business
Deciding between an MSSP and an in-house SOC involves carefully evaluating your organization’s cybersecurity needs, goals, and resources. Consider the following questions to help you decide the best approach.
What is your budget for cybersecurity?
Budget is often the most important factor when deciding between hiring an MSSP and building an in-house SOC. MSSPs generally offer a cost-effective way to access enterprise-grade security services without the significant upfront investment required to build a SOC. On the other hand, businesses with the financial resources and a need for more tailored solutions might find the higher cost of an in-house SOC justifiable.
Do you have internal expertise or the ability to hire skilled professionals?
An in-house SOC requires a team of cybersecurity professionals, including SOC analysts, engineers, and SOC managers. If your organization lacks the internal expertise or the ability to recruit and retain talent, outsourcing to an MSSP can provide immediate access to experienced professionals without the challenges of hiring and ongoing training.
What are your compliance requirements?
Industries with stringent compliance regulations, such as healthcare, finance, or government, may need more customized approaches to meet specific requirements. While MSSPs often have expertise in managing multiple compliance frameworks, an in-house SOC can provide more granular control over compliance processes and overlapping control requirements.
How critical is 24/7 monitoring and response?
Continuous monitoring is essential for detecting and responding to threats in real-time. MSSPs typically offer 24/7 monitoring as part of their service packages, which can be a cost-effective solution for businesses that cannot support a full-time, in-house team. If your operations demand constant direct oversight and direct lines of communication, an in-house SOC may be a better fit.
Are you looking for a scalable solution?
MSSPs allow businesses to adjust their level of service as they grow or face new threats, while scaling an in-house SOC requires additional investment in personnel, infrastructure, and security tools. For rapidly growing organizations or those with fluctuating needs, the flexibility of an MSSP can provide a clear advantage.
Pairing MSSPs with compliance automation
For many organizations, the ideal solution lies in combining the expertise of an MSSP with the efficiency of a security and compliance platform — particularly for growing companies seeking to enhance their security posture while optimizing resources. They can access expert guidance for navigating a complex cybersecurity landscape, meet compliance requirements faster, enhance their security posture, and place their full focus on growing their business and serving their customers.
Tailored expertise
Compliance automation tools work best when paired with the deep knowledge and hands-on experience of an expert. MSSPs understand the nuances of frameworks like SOC 2 and ISO 27001 as well as regulatory requirements like HIPAA and GDPR. They can quickly assess, tailor, and implement controls specific to an SMB's needs. MSSPs bring a strategic perspective, offering guidance on best practices and helping SMBs prioritize their security and compliance efforts effectively.
Resource optimization
While compliance automation significantly reduces manual effort, managing compliance still requires time and expertise. MSSPs lift this burden from SMBs by handling the operational aspects of compliance, from control implementation to audit preparation and reporting. This partnership eliminates the need for expensive in-house compliance roles and allows SMBs to focus on driving their business forward, knowing their compliance and security posture is in good hands.
A stronger, proactive security posture
By continuously monitoring environments and providing immediate alerts through automation platforms, MSSPs ensure that any issues are resolved before they escalate. Their expertise also enables them to fine-tune security strategies, addressing threats and vulnerabilities that might otherwise be overlooked. This proactive approach to compliance and security builds resilience against cyberattacks while ensuring businesses are always audit-ready.
Scalability and growth support
As SMBs grow, their needs become more complex — new frameworks, larger clients, and stricter requirements. MSSPs excel in scaling their support to match these demands, using automation tools to manage increasing complexity while maintaining high standards. Whether it’s helping an SMB move upmarket, navigate complex customer requirements, or expand into regulated industries, MSSPs provide the scalability and expertise to enable growth without overwhelming internal teams.
For startups and small businesses, security and compliance automation paired with MSSP services is a strategic investment that pays dividends in efficiency, cost savings, and growth. By automating compliance activities and reducing risks, this powerful combination enables businesses to focus on what matters most: driving innovation and scaling operations.
See how Secureframe and its trusted Service Partner network can help you strengthen your security and compliance posture and boost operational efficiency by scheduling a demo today.
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FAQs
Is MSSP a SOC?
No, an MSSP is not a SOC. An MSSP is a third-party provider offering outsourced security services, while a SOC is an in-house team and facility dedicated to managing security operations.
What is the difference between MSSP and SOC in-house?
The main difference lies in ownership and control. MSSPs are external providers managing security for you, while an in-house SOC is fully owned and operated by your organization.
What is the difference between MSP and SOC?
MSPs handle general IT services like infrastructure management, while a SOC focuses on cybersecurity monitoring and threat response.
What does MSSP mean?
MSSP stands for Managed Security Service Provider, a company that provides outsourced cybersecurity services to businesses.