SIEM vs. MDR: 5 Key Differences and How to Choose

What Is Security Information and Event Management (SIEM)? 

Security Information and Event Management (SIEM) is a cybersecurity solution that provides a holistic view of an organization’s information security. SIEM systems work by collecting and analyzing log data generated across an organization’s IT infrastructure, including networks, devices, and applications. This data encompasses everything from network traffic and system activity to database transactions and user behaviors.

The primary function of SIEM is to enable security teams to identify and respond to security incidents and vulnerabilities swiftly. It does this by aggregating log data from various sources, normalizing it for analysis, and applying advanced analytics to detect patterns indicative of security threats. 

How SIEM Works 

Here is the general process SIEM systems use to provide meaningful insights on security incidents:

1. The SIEM collects log data from numerous sources within an organization’s IT environment, such as network devices, servers, applications, and security systems.
2. Once collected, the data undergoes normalization and aggregation. Normalization converts disparate data formats into a uniform format, making it easier to analyze. Aggregation consolidates the data, reducing volume and simplifying analysis. 
3. This processed data is then stored in a centralized repository, where it can be accessed for analysis. 
4. The SIEM uses rules, correlation engines, and machine learning algorithms to analyze this data, looking for patterns and anomalies that could indicate a security threat or incident.
5. When a potential threat is detected, the SIEM generates alerts. These alerts are prioritized based on severity, providing security teams with actionable intelligence to investigate and respond to incidents. 

Over time, SIEM systems can be fine-tuned, incorporating feedback from security analysts to improve accuracy and reduce false positives. By providing a centralized view of an organization’s security landscape, SIEM enables security teams to detect and respond to threats more effectively than would be possible with disparate tools and data sources.

What Is Managed Detection and Response (MDR)? 

Managed Detection and Response (MDR) is a cybersecurity service that combines technology, processes, and human expertise to provide organizations with threat detection, analysis, and response capabilities. 

Unlike traditional security solutions that focus mainly on prevention, MDR emphasizes rapid detection of and response to threats. MDR experts monitor for suspicious activity, investigate potential security incidents, and take direct action to contain and neutralize threats, often before they can cause significant damage.

Tips from the expert

Steve Moore is Vice President and Chief Security Strategist at Exabeam, helping drive solutions for threat detection and advising customers on security programs and breach response. He is the host of the “The New CISO Podcast,” a Forbes Tech Council member, and Co-founder of TEN18 at Exabeam.

In my experience, here are advanced tips to help organizations effectively utilize SIEM and MDR solutions, as well as determine how to integrate these tools into a cohesive cybersecurity strategy:

Leverage MDR threat intelligence to refine SIEM rules
Use MDR’s real-world threat intelligence to update and improve SIEM correlation rules. For example, incorporate indicators of compromise (IoCs) like IP addresses, domains, or file hashes identified by MDR teams.

Combine SIEM and MDR for layered security
Use SIEM for organization-wide log aggregation and compliance reporting, while leveraging MDR for hands-on threat hunting and incident containment. This hybrid approach ensures both comprehensive monitoring and rapid response.

Automate SIEM-MDR workflows for efficiency
Integrate SIEM alerts into your MDR provider’s incident response workflows. Automate alert triaging, contextual enrichment, and response actions (e.g., endpoint isolation), allowing your team to focus on critical threats.

Prioritize use-case-driven SIEM configurations
Tailor SIEM rules and dashboards to focus on high-priority scenarios, such as insider threats or advanced persistent threats (APTs). Avoid a one-size-fits-all approach that can overwhelm teams with irrelevant alerts.

Incorporate endpoint telemetry into SIEM
Enrich SIEM logs with endpoint data collected via MDR tools or EDR solutions. Endpoint telemetry adds granular insights that enhance threat detection and root cause analysis.

How MDR Works 

MDR services offer continuous monitoring and active threat hunting within an organization’s environment. They allow organizations to outsource detection and response efforts, with a team of security experts working around the clock. This is useful for organizations that cannot afford to keep an dedicated in-house security team.

MDR services typically provide: 

• 24/7 monitoring and analysis of an organization’s IT environment,  making it possible to immediately identify and respond to threats.
• Security technologies such as endpoint detection and response (EDR) tools.
• Expertise of security professionals who have the skills to analyze complex threats and execute appropriate countermeasures. 

MDR experts investigate alerts, verify threats, and initiate actions to neutralize detected issues. While other solutions only alert an organization to potential threats, MDR ensures the organization can fully address threats as they are discovered.

SIEM vs. MDR: Key Differences 

SIEM and MDR represent different approaches to security and encompass different capabilities.

1. Focus

SIEM systems are primarily focused on log management and the aggregation of security event data. They provide a comprehensive view of an organization’s security posture by analyzing log data. This focus on data collection and analysis helps identify trends and patterns that might indicate a security threat.

MDR emphasizes incident response and active threat hunting. While SIEM provides the tools for security incident identification, MDR goes further by directly engaging in the resolution of these incidents. MDR services provide access to security experts who actively seek out and mitigate threats.

2. Scope

SIEM systems offer broad coverage across the entire IT ecosystem. This includes networks, servers, applications, and endpoints, providing a comprehensive view of the security posture and activities within these components. SIEM’s extensive scope allows it to collect and analyze data from various sources, offering insights into security events and potential threats across the whole organization.

MDR primarily focuses on endpoints and the immediate threats that target them. Endpoints, such as workstations, mobile devices, and servers, are often the targets of advanced threats and malware. MDR services specialize in detecting, analyzing, and responding to such threats at the point of entry or behavior. By concentrating on endpoints, MDR provides deep insights and rapid response capabilities for the most common entry points of attacks.

3. Technology vs. Human Expertise

SIEM relies primarily on technology to collect, aggregate, and analyze security data. It’s designed to automate the process of identifying potential security threats through algorithms and correlation techniques. This technology-centric approach is effective for detecting known threats and patterns within massive data sets. Modern SIEM solutions use behavioral analysis to identify unknown attack patterns, and can automate responses to common threats.

MDR combines technology with human expertise to provide a comprehensive cybersecurity solution. Security professionals analyze SIEM alerts, perform threat hunting, and take proactive measures to protect the organization. The inclusion of human experts adds another layer of analysis and action beyond what automated systems can achieve.

4. Reactive vs. Proactive

SIEM systems are traditionally more reactive, identifying threats based on previously established patterns and rules. They can alert organizations to potential security incidents but are limited to responding to threats that have already been recognized in some form. However, modern SIEM solutions include systems that can automatically respond to threats based on predefined playbooks. 

MDR services are inherently proactive, actively seeking out threats that have not yet been identified by automated systems. By incorporating threat hunting into their operations, MDR providers can detect and mitigate threats before they’re known to traditional security systems. This proactive stance is crucial for defending against advanced or evolving threats.

5. Cost

Implementing a SIEM system often involves significant upfront investment in technology and infrastructure, along with ongoing operational costs associated with managing and maintaining the system. Organizations must also invest in training or hiring staff with the expertise to manage the SIEM system effectively. However, modern SIEM solutions are cloud-based and available on a subscription model, with minimal upfront investment.

MDR services, while also requiring investment, primarily involve operational expenses. These services typically include the cost of technology, infrastructure, and the expertise of the security professionals managing the service. For many organizations, MDR can be a cost-effective way to access advanced cybersecurity capabilities without the need to build and maintain them in-house.

MDR vs. SIEM: How to Choose? 

Choosing between MDR and SIEM depends on an organization’s specific security needs, resources, and existing cybersecurity posture. Here are several considerations to guide the decision:

Organizational capacity and expertise

• Opt for SIEM if your organization has the capacity to manage and analyze large volumes of data in-house. This includes having a dedicated IT security team with the expertise to configure, manage, and respond to SIEM alerts. SIEM is also suitable if you aim to retain full control over your security operations.
• Choose MDR if your organization lacks a large in-house security team or specific cybersecurity expertise. MDR is beneficial for businesses that prefer to rely on external experts for continuous monitoring, threat detection, and response.

Scope of protection

• SIEM is suitable for organizations looking for comprehensive coverage of their security posture across all IT systems and networks. If your primary goal is to aggregate and analyze security data from various sources to identify potential threats, SIEM is the right choice.
• MDR is ideal for organizations that prioritize immediate threat detection and response, especially at the endpoint level. If your concern is more about rapid response to incidents rather than broad data analysis, MDR may better meet your needs.

Strategic security goals

• If your strategy emphasizes proactively hunting and responding to threats before they escalate, MDR’s hands-on approach aligns well with this goal. 
• SIEM’s strength lies in a reactive, yet comprehensive, analysis of security data to identify threats based on established patterns.

SIEM vs. EDR is not always an “either or” question. Many organizations may benefit from a hybrid model, utilizing SIEM for comprehensive data analysis and log management while employing MDR services for their proactive threat hunting and response capabilities.

Exabeam Fusion SIEM

Exabeam Fusion SIEM is a cloud-delivered solution that combines SIEM with the world-class threat detection, investigation, and response (TDIR) of Extended Detection and Response (XDR). 

With powerful behavioral analytics built into Fusion SIEM, analysts can detect threats missed by other tools. Prescriptive workflows and pre-packaged content enable successful SOC outcomes and response automation. Fusion SIEM also provides the cloud-based log storage, rapid and guided search, and comprehensive compliance reporting expected of any modern SIEM.

With Fusion SIEM you can:

• Use threat detection events, investigation, and response from multiple tools
• Collect, search, and enhance data from anywhere
• Detect threats missed by other tools through behavioral analytics
• Achieve successful outcomes with prescriptive, threat-centric use case packages
• Enhance productivity and reduce response times with automation
• Meet regulatory compliance and audit requirements with ease

How Exabeam Fusion Works

Data from anywhere enhances visibility  – Visibility is the first pillar of security operations, but it is a challenge to achieve as modern organizations are making data available everywhere. Inefficient and overly complex traditional logging tools often require knowledge of proprietary query language, and are slow to deliver results. The continuous spread of data, infrastructure, and applications requires a new level of analytics for full visibility. Fusion SIEM collects data from the endpoint to the cloud, eliminating blindspots to give analysts a full picture of their environment. Rapid, guided search boosts productivity, and ensures analysts of all levels can access valuable data exactly when they need it.

Prescriptive TDIR use case packages and automation – It has become too complicated to build an effective SOC using legacy SIEMs and a selection of purpose-built security products. Every SOC is unique, with its own mix of tools, level of staffing and maturity, and processes and there is no standard way to tackle cybersecurity. Fusion SIEM solves this by leveraging prescriptive, threat-centered TDIR Use Case Packages that provide repeatable workflows and prepackaged content that spans the entire TDIR lifecycle. These use cases include all the content necessary to operationalize that use case, including: prescribed data sources, parsers, detection rules and models, investigation and response checklists, and automated playbooks.

Meet regulatory compliance and audit requirements  – Organizations must adhere to compliance regulations. Creating and maintaining compliance reports is time consuming but necessary. Whether you’re subject to GDPR, PCI, HIPAA, NYDFS, NERC, or utilizing a framework such as NIST or directives from DISA or CISA, Fusion SIEM significantly reduces the operational overhead of compliance monitoring and reporting. Fusion SIEM’s pre-packaged reports provide huge time savings spent correlating information, solves the risk of missing vital data, and eliminates the need to manually create compliance reports through report builder tools.