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Finding skilled cybersecurity professionals who know how to detect and respond to security incidents quickly is not feasible for many organizations. With a cybersecurity workforce gap of 3.4 million, there simply aren’t enough security analysts to go around.
That’s why more and more vendors are innovating managed detection and response (MDR) solutions to provide enterprises with 24/7 support from a remote security operations center (SOC).
One such provider, Binary Defense, today announced it has closed a $36 million equity funding round led by Invictus Growth Partners. Binary Defense offers an MDR service based on an open XDR approach, using the tools and technologies that organizations already have in place to detect and respond to intrusions.
It’s an approach designed to help augment the capabilities of on-site security teams so they can close the cyber skills gap, and optimize the time taken to detect, analyze and respond to threats.
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Filling the cyber skills gap with MDR
The announcement comes as more and more organizations are finding it difficult to keep up with a rapidly evolving threat landscape. A report from Fortinet found that 80% of organizations suffered one or more data breaches that could be attributed to a lack of cybersecurity skills or awareness.
In light of that, MDR has emerged as a critical solution category. Gartner estimates that by 2025, half of organizations will be using MDR services for threat monitoring, detection and response functions to contain and mitigate threats.
Binary Defense is putting its own twist on MDR, by taking an open XDR approach where the offsite security team leverages an organization’s existing tools to identify threats across endpoints, on-premise networks and the cloud.
“Open extended detection and response (XDR) is a security solution that is built to enable the ingestion of telemetry data from a wide range of security and IT tools — such as endpoint detection and response (EDR) network detection and response (NDR), identity access management (IAM), email protection, and cloud access security brokers (CASB),” said Bob Meindl, CEO of Binary Defense.
The idea behind the approach is that disparate security tools increase complexity, and make it difficult to address the security gaps that exist within an organization’s environment.
“To help increase our client’s security posture, we provide managed detection and response that leverages the open XDR strategy by utilizing the tools and technologies that our clients have already invested in and providing a curated selection of best-in-class tools and security operations processes that augments any app the client may have,” Meindl said.
A look at the MDR market
Binary Defense solution falls into the global MDR market sector, which researchers valued at $2.6 billion in 2022, and anticipate will reach a value of $5.6 billion by 2027.
One of Binary Defense’s main competitors in the market is Sophos, which offers a fully managed MDR service to detect cyberattacks, while providing on-premise teams with a dashboard view alongside alerts, reporting, and management capabilities. In 2020, private equity firm Thoma Bravo acquired Sophos for $3.9 billion.
Another competitor is Arctic Wolf, offering its own MDR solution alongside a security operations warranty, providing up to $1 million in assistance for cybersecurity incidents. Arctic Wolf recently raised $401 million in convertible debt funding.
At this stage, the main differentiator between Binary Defense and other providers is its open XDR strategy.
“We leverage data from our client’s existing technologies, meaning they get the benefits of our superior detections and expert analysis without needing to rip and replace costly technologies that are already set up and tuned to their environments,” Meindl said.