What is Managed Detection and Response (MDR)?

Managed Detection and Response (MDR) is a managed cybersecurity service that provides continuous threat monitoring, investigation, and response across an organisation’s environment.

Rather than relying on security tools alone, MDR combines telemetry from endpoints, identity systems, cloud platforms, email, and networks with experienced security analysts who monitor and respond to threats 24/7. The goal is not simply to generate alerts, but to identify genuine security incidents quickly and respond before they escalate into business-impacting events.

In practical terms, MDR delivers the core functions of a Security Operations Centre without the cost, staffing burden, or operational complexity of building and operating one internally. As a result, MDR has become a foundational control for organisations seeking stronger cyber resilience and faster response capability.

Why Managed Detection and Response exists

Most organisations already deploy security technologies such as endpoint protection, SIEM, or cloud security platforms. However, these tools are only effective when they are actively monitored, tuned, and acted upon.

In reality, many organisations struggle with alert fatigue, limited internal expertise, and insufficient coverage outside business hours. Security events may be logged but not investigated in time. In some cases, alerts are acknowledged without a clear understanding of impact or response priority.

Managed Detection and Response exists to close this operational gap. By combining tooling with skilled analysts and defined response processes, MDR ensures security controls are actively managed rather than passively deployed.

How Managed Detection and Response works

While MDR services vary by provider, most follow a similar operational model.

First, security telemetry is collected from agreed sources. These typically include endpoints, identity platforms, cloud services, email systems, and sometimes network or SaaS applications. This data provides visibility across the environment rather than focusing on a single control point.

Next, the telemetry is analysed by security analysts using a combination of detection logic, threat intelligence, and behavioural analysis. Alerts are validated and prioritised to distinguish genuine threats from benign activity.

When a confirmed threat is identified, response actions are taken according to predefined playbooks. This may involve containment, escalation to internal teams, or coordination with incident response services, depending on scope and severity.

Over time, detections are tuned and refined. This continuous improvement reduces false positives and improves response effectiveness as the organisation’s environment evolves.

What MDR includes and what it does not

A common source of confusion is what MDR actually includes.

Most MDR services provide continuous monitoring, threat investigation, and some level of response support. This typically includes alert validation, prioritisation, and guided or direct response actions where agreed.

However, MDR does not automatically include every security function. Activities such as compliance audits, vulnerability remediation, or full incident recovery may sit outside standard MDR scope unless explicitly included.

The effectiveness of MDR therefore depends heavily on service definition. Organisations should understand what response authority analysts have, how escalation works, and what outcomes are expected when incidents occur.

MDR vs MSSP, SOC, XDR and EDR

Managed Detection and Response is often evaluated alongside other security models and technologies. Understanding the differences is essential.

Traditional Managed Security Service Providers generally focus on monitoring and alerting. While they may offer broad coverage, response responsibility often remains with the customer, which can overwhelm internal teams.

An internal Security Operations Centre provides full control and visibility but requires significant investment in people, processes, and tooling. Maintaining 24/7 coverage, retaining skilled analysts, and preventing burnout are ongoing challenges.

EDR and XDR platforms deliver valuable detection capabilities across endpoints and multiple domains. However, they remain tools. Without skilled analysts and defined response processes, alerts still require internal triage and decision-making.

Managed Detection and Response sits between these approaches. It combines technology, people, and response processes into a single service, delivering SOC-level capability without the overhead of building everything in-house.

Who Managed Detection and Response is suited to

Managed Detection and Response is well suited to organisations that require continuous visibility into security threats but do not have the capacity or desire to operate a full 24/7 SOC.

This includes organisations with limited internal security resources, cloud-first environments, and businesses operating in regulated or high-risk sectors. MDR is also commonly adopted by organisations seeking to improve detection and response maturity as part of broader frameworks such as the ACSC Essential Eight, ISO 27001, SOC 2, or IRAP-aligned controls.

In these environments, MDR acts as a force multiplier. It extends security capability beyond business hours and reduces the operational burden on internal teams.

When MDR may not be the right choice

While MDR delivers value in many scenarios, it is not universally appropriate.

Organisations with a mature, fully staffed internal SOC and established response processes may see limited incremental benefit. Similarly, organisations seeking only periodic assessments or compliance reporting may not require continuous monitoring and response.

MDR is also not suitable for environments that want alert forwarding without investigation or response. Without defined response authority, MDR becomes another source of noise rather than a meaningful control.

Clear alignment between organisational need and service scope is critical.

Understanding MDR pricing at a high level

MDR pricing varies widely due to differences in platform licensing, telemetry coverage, and response depth. Some providers price per user or per endpoint, while others use models based on data ingestion volume.

From an organisational perspective, predictability matters. Pricing models that scale with telemetry volume can introduce budget risk as environments grow and logging increases.

A more detailed breakdown of commercial models and cost drivers is covered in our MDR pricing guide for Australia, which explains how to compare offerings realistically.

MDR in an Australian context

Australian organisations face a distinct combination of challenges. Threat activity frequently occurs outside standard business hours, cybersecurity skills are in short supply, and regulatory and assurance expectations continue to rise.

Managed Detection and Response helps address these challenges by providing continuous coverage, specialist expertise, and demonstrable operational capability. When scoped correctly, MDR supports both risk reduction and governance outcomes, giving executives greater confidence in their organisation’s security posture.

Common misconceptions about What Managed Detection and Response (MDR) is

One common misconception is that MDR is simply outsourced alerting. In reality, mature MDR services focus on investigation and response rather than notification alone.

Another misconception is that MDR replaces internal teams. In practice, MDR complements internal capability by handling continuous monitoring and triage, allowing internal teams to focus on remediation and strategic improvement.

Finally, MDR is sometimes viewed as a one-time solution. Effective MDR programmes evolve over time, improving detection quality and response effectiveness as environments and threats change.

How to evaluate an MDR service

When evaluating Managed Detection and Response, organisations should focus on outcomes rather than feature lists.

Key considerations include visibility breadth, response authority, escalation clarity, reporting quality, and the provider’s ability to support ongoing improvement. Local support models and experience within Australian environments may also be relevant, particularly for regulated industries.

Understanding these factors helps ensure MDR delivers sustained value rather than short-term coverage.

Bringing it all together

Managed Detection and Response has become a foundational cybersecurity capability for organisations that need continuous threat detection and response without the complexity of running a full SOC.

When implemented correctly, MDR reduces operational risk, improves response maturity, and provides confidence that threats are being actively managed. However, success depends on clear scope, realistic expectations, and alignment with organisational needs.

For organisations exploring next steps, our Managed Detection and Response services and CIO decision guide provide practical detail on how MDR can be implemented and evaluated in Australian environments.

Frequently asked questions about MDR

Does MDR include incident response?
MDR typically includes investigation and response actions. Full incident recovery may require additional services depending on scope.

Is MDR suitable for cloud-first organisations?
Yes. MDR is particularly effective in environments that rely heavily on identity, cloud, and SaaS platforms.

How quickly does MDR deliver value?
Most organisations see benefits within the first few months as detection quality and response processes mature.

Does MDR support compliance frameworks?
When scoped correctly, MDR supports detection and response requirements within frameworks such as the ACSC Essential Eight and ISO 27001.

About CyberPulse

CyberPulse is a security-first compliance partner helping organisations reduce cyber risk, build resilience and achieve certification with confidence. Founded by former CISOs and security leaders, we align technical depth with real-world context to deliver measurable outcomes across advisory, managed services, compliance and threat defence.

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Useful Links

• Managed Detection and Response Pricing Guide (Australia)
• Managed Detection and Response Services in Australia: A CIO’s Decision Guide
• Why Rapid7 MDR with CyberPulse Delivers Real Security Maturity Uplift in Australia
• SOC Services Australia: Strategic Guide

Related Services

• CyberPulse Managed Detection & Response Services

External Resources

• ASD Guidance on security Incidents
• MItre Att&ck Framework