Managed Detection and Response Pricing Guide

Summary

Managed Detection and Response (MDR) has become a core requirement for Australian organisations seeking 24 x 7 threat detection, fast incident response and improved cyber resilience. However MDR pricing varies widely across the market and many organisations struggle to compare offerings that differ in visibility, response depth, technology stack and included uplift services.

This article provides a practical overview of MDR pricing in Australia using anonymised vendor examples and realistic commercial benchmarks. It explains why pricing differs, how MDR vendors structure their costs and why the most complete MDR platforms often become more cost-effective as environments grow. It also highlights the risks of throughput-based pricing models that may appear affordable at first but escalate sharply as log volumes increase.

CyberPulse recommends evaluating Managed Detection and Response (MDR) solutions based on outcomes rather than headline price. The most valuable MDR programmes improve maturity, strengthen controls and provide measurable uplift rather than only monitor events.

Key Findings

• MDR pricing in Australia varies significantly due to differences in technology stack, visibility coverage and response capability.
• Smaller organisations can access low-cost MDR at approximately $300 per user per year, although these offerings provide limited depth.
• Mid-market organisations typically pay around $120,000 for approximately 800 seats when broader coverage is required.
• Throughput-based pricing models carry financial risks because log ingestion volumes tend to increase faster than expected.
• Organisations should prioritise total value delivered rather than per-user cost alone.

What Drives MDR Pricing in Australia

1. Technology and Platform Licensing

Managed Detection and Response (MDR) offerings vary from simple endpoint-focused monitoring to complete SIEM and XDR platforms. Broader platforms ingest more data, correlate signals at higher fidelity and require more analyst engagement. Platform selection significantly influences MDR pricing.

2. Seat Count and Environment Size

Most MDR providers price per user, per endpoint or per asset. Pricing often becomes more favourable as the environment grows because operational overhead is distributed across a larger base.

3. Detection Coverage and Telemetry Sources

More advanced MDR vendors monitor identity, cloud, network, SaaS and third party feeds in addition to endpoint events. This increases visibility and improves detection quality but also contributes to higher licensing and operational costs.

4. Response Depth

Some MDR services provide alerting only. Others offer containment support, hands-on triage, forensics and guided remediation. Higher levels of response generally indicate a more mature operational capability and a higher price point.

5. Integrated Uplift Services

Many MDR solutions focus solely on detection. CyberPulse recommends MDR that includes uplift components such as:

• Security maturity assessments
• Essential Eight alignment
• GRC tooling
• Vendor risk management
• Posture management
• Penetration testing or autonomous testing
• Advisory support

These inclusions shift MDR from a monitoring service to a full improvement programme, which affects pricing but delivers greater long-term value.

Typical Managed Detection and Response (MDR) Pricing Benchmarks in Australia

1. Small Organisations (under 5-100 seats)

Some Managed Detection and Response (MDR) providers offer cost-effective pricing suitable for smaller organisations with straightforward environments.
Typical pricing: approximately $300 per user per year for sub 50 seats and around $250 up to 100 seats.

These offerings usually include:

• Limitations to Microsoft E5 or E3 + E5 security ad-on.
• Basic response workflows
• Limited identity or cloud visibility
• Minimal governance or uplift support

This model is suitable for organisations with simple requirements but is not designed for Essential Eight maturity improvement.

2. Mid-Market Organisations (101 to 1,000 seats)

As environments expand, organisations require:

• Broader visibility
• Stronger correlation and analytics
• Identity and cloud coverage
• Enhanced response capability

Typical pricing for a mid-market MDR provider:
Approximately $130,000 for around 800 seats.

This level of investment generally reflects expanded telemetry and deeper operational involvement, although many providers still do not offer maturity uplift, posture management or governance tooling.

Larger organisations have bigger budgets and we see the most variance in approach. Costs here, vary greatly.

Why Throughput-Based Pricing Is Risky

Several Managed Detection and Response (MDR) vendors use throughput-based pricing where costs are determined by the volume of logs or data ingested. Although these models may appear attractive initially, they can become expensive quickly.

There are several reasons for this trend:

1. Log volumes grow faster than forecast

Identity systems, cloud platforms and SaaS services generate increasing amounts of telemetry over time. Costs can escalate even when headcount stays the same.

2. New applications and integrations add unplanned data sources

Modern organisations frequently adopt new cloud services or business applications. Each addition increases ingestion volume and potential cost.

3. Security improvements require additional telemetry

To improve maturity, organisations often enable more logging, not less. This further increases ingestion costs under throughput-based models.

4. Predictability becomes difficult

Budgeting becomes challenging because MDR costs fluctuate with operational changes, seasonal activity, project work or onboarding of new systems.

5. Cost growth often outpaces value

Higher telemetry volume does not always produce better detection outcomes if the platform or provider lacks the analytics or operational depth required to use the data effectively.

For most Australian organisations, per-user or per-asset pricing offers greater predictability and budget stability.

Why Organisations Should Evaluate MDR by Value, Not Price

Headline price is only one part of the decision. Organisations should evaluate MDR based on:

• Visibility and detection depth
• Response effectiveness
• Maturity uplift and controls improvement
• Reporting and governance support
• Integration with existing systems
• Scalability and long-term cost predictability

Cheap MDR becomes expensive if essential capabilities must be purchased separately.

Why CyberPulse Recommends a Maturity-Driven MDR Programme

CyberPulse delivers MDR built on complete detection technology and strengthened by advisory, posture management and governance capability. The programme includes:

• Annual security maturity assessment
• Essential Eight alignment
• GRC Essentials toolkit
• Vendor risk management
• Continuous posture monitoring
• Penetration testing and autonomous testing options
• Board-ready reporting
• Strategic advisory throughout the year

This approach produces measurable improvement rather than only monitoring activity.

Choose a Managed Security Service, that increases value and security

Pricing is important, however the value of MDR is determined by maturity outcomes, control effectiveness and the provider’s ability to help your organisation reduce risk. CyberPulse delivers a complete MDR programme that combines advanced detection technology with structured improvement, governance support and ongoing advisory.

If you want MDR that transforms your security posture, improves maturity and supports compliance, CyberPulse is ready to help.

➡️ Book an MDR consultation or pricing discussion

Useful Links

CyberPulse Services

• Managed Detection and Response Services in Australia: https://www.cyberpulse.com.au/managed-soc-mdr/
• Compliance and Advisory Services: https://www.cyberpulse.com.au/compliance-audit-advisory-services-australia/
• Penetration Testing: https://www.cyberpulse.com.au/penetration-testing-services-australia/

Blogs to check out

CyberPulse Augmented MDR: https://www.cyberpulse.com.au/2025/12/06/why-rapid7-mdr-with-cyberpulse-delivers-real-security-maturity-uplift-in-australia/

ACSC References

• ACSC Essential Eight Framework: https://www.cyber.gov.au/business-government/asds-cyber-security-frameworks/essential-eight