The Real Cost of Managed SOC: Is It Worth It for Your Business?

Director of Cloud and Cybersecurity, AWS Expert, big fan of SRE. Helps teams to improve system reliability, optimise testing efforts, speed up release cycles & build confidence in product quality.

Senior Content Writer. Master’s in Journalism, second degree in translating Tech to Human. 7+ years in content writing and content marketing.

9 in 10 organizations in the US were at risk of a material cyberattack in the following year, according to the Statista cybersecurity survey. Managed Security Operation Centers (managed SOCs) provide a straightforward solution, offering continuous monitoring and fast response to cyber threats.
This way, your business gets expert protection, so you can focus on what you do best.
Key takeaways
- What makes up a SOC: not just the team, but the infrastructure and tools that power it.
- How managed SOCs differ from internal teams: We’ll explain how outsourced SOCs handle both the expertise and the back-end infrastructure.
- Understanding the costs involved in SOC services, including the hidden costs that often get overlooked.
- A closer look at different pricing models: how they’re influenced by team size, tools, infrastructure, and operational upkeep.
What is a Managed Security Operations Center?
Every managed service provider offers their expertise on a demand basis. A Managed Security Operations Center is an outsourced service that helps businesses protect their digital infrastructure and security posture from cyber threats. It offers round-the-clock monitoring, threat detection, and quick incident response, all managed by cybersecurity experts.
This service is typically provided by third-party vendors who deploy specialized technology and skilled professionals to ensure your systems and data are safe. The main services are:
- 24/7 monitoring and alert triage;
- threat detection and analysis;
- security events monitoring and incident response;
- security intelligence;
- regulatory and compliance support.
SOC vs. managed SOC
A Security Operation Center (SOC) is an internal team within an organization that is responsible for monitoring, detecting, and responding to security incidents in real time. Building and maintaining an in-house SOC can be expensive, even for those who know how to build a SOC. It requires hiring a dedicated team, purchasing advanced security tools, and managing ongoing operational costs.
On the other hand, a Managed Security Operation Center is an outsourced service provided by a third-party security provider. The provider takes over the responsibility of monitoring your organization’s security, giving you access to a team of experts and advanced technologies without the overhead of building your own SOC.
Where does the main distinction lie?
Managed SOC is not just a team of cybersecurity professionals but a complete service solution for businesses. Think of it as a fully integrated defense system. It includes advanced security tools, a robust IT infrastructure, and a highly skilled team of experts that work together to protect your digital assets.
A dedicated SOC team works 24/7 to monitor, detect, analyze, and respond to security incidents. However, the real backbone of a managed SOC service is technology. This includes advanced firewalls, intrusion detection systems, SIEM tools, and threat intelligence feeds. These tools are what empower the SOC team to detect and mitigate threats in real-time.
But there’s also the infrastructure: the physical or cloud-based systems that support these technologies. This infrastructure requires ongoing maintenance and upgrades to stay up-to-date with the latest threats and best practices in cybersecurity. You can outsource this entire security ecosystem and access the necessary tools, infrastructure, and expertise without building and maintaining everything internally.
Key distinctions of managed SOC
- Gives you access to a team of specialized cybersecurity experts without the need for continuous hiring, training, and retention of security professionals.
- Includes advanced security tools and infrastructure provided and maintained by the service provider. You don’t need to purchase, maintain, and upgrade your own security tools and infrastructure.
- The provider covers operational costs, with businesses paying only for needed services.
Why Businesses Prefer Managed SOC
Here’s why many organizations prefer managed SOCs over internal solutions.
Access to expertise without the cost of in-house hiring
Building and managing a skilled in-house team of cybersecurity experts is both time-consuming and costly. Besides hiring professionals, it also involves investing in security tools, maintaining infrastructure, and handling ongoing operational costs like training and upgrades.
Managed SOC services give businesses immediate access to professionals well-versed in handling complex security threats without the overhead of managing these aspects internally. This option offers a cost-effective alternative, allowing businesses to pay only for the services they need.
Companies can avoid the high costs of purchasing advanced security tools, maintaining infrastructure, and hiring full-time staff. This means they get top-tier security expertise and the necessary infrastructure to handle developing threats without the financial burden of building it from scratch.
Scalability on demand
As your business grows, so do your security requirements. The tools, infrastructure, and expertise required to secure a growing organization are not static. Managed SOC providers offer scalable solutions that grow with you. Whether you’re expanding into new markets, adding more users, or introducing new systems, an outsourced SOC can easily adapt to your changing requirements.
This flexibility ensures your security posture grows with your business and allows companies to focus on growth without the need to manage complex cybersecurity infrastructure. You can offload this responsibility and focus on core functions, knowing that security is in the hands of experts.
More time for innovation
When you outsource your security operations to a managed SOC, your business can focus on what it does best. Without the burden of managing complex cybersecurity processes, your internal teams can remain productive and concentrate on growth and innovation. This helps businesses stay ahead in a competitive market without being bogged down by security complexities.
For all these reasons, businesses, especially those without the resources to manage security internally, often prefer the flexibility, expertise, and peace of mind that come with a managed SOC.
Key Factors Influencing the Cost of Managed SOC
Several factors contribute to the managed SOC pricing. Understanding these factors will help you assess your needs and make an informed decision when selecting a provider.
Scope of services and managed SOC model
The scope of services provided and the chosen managed SOC model are some of the biggest cost drivers. Some organizations may need basic monitoring and alerts, while others may require a comprehensive solution with threat intelligence, incident response, and compliance management. The more extensive the services, the higher the cost.
The level of service depends on your organization’s security needs, with larger businesses or those in regulated industries often requiring more extensive solutions. As the services become more robust, the price typically increases due to the additional resources and expertise needed to manage complex security environments.
Size of organization
Larger organizations typically require more resources, such as additional monitoring tools, more analysts, and more advanced capabilities. A mid-sized business may only need a basic SOC solution with some additional services, but as your company grows, the complexity of security threats increases, and so does the cost of managing those risks.
Level of customization
Some organizations prefer a tailored SOC solution that aligns with their specific security needs and operational environment. Customization can include configuring monitoring systems, setting up specific response protocols, and integrating with existing IT infrastructure. Custom solutions often come at a premium, as they require more specialized expertise and resources.
Compliance and regulatory requirements
Industries such as healthcare, finance, and government must adhere to strict regulatory and compliance standards (e.g., GDPR, HIPAA, PCI-DSS). Meeting these compliance requirements may demand additional services such as regular audits, reporting, and specific security measures. As a result, businesses in these industries often face higher managed SOC cost.
Geographic location
The location of the managed SOC provider can also impact the cost. Providers based in regions with a higher cost of living may charge more for their services. Additionally, if your business operates globally, you may need a provider with a distributed network of SOCs, which could increase costs.
Number of assets and users
Your business's number of endpoints or users can significantly influence the cost. A larger number of assets typically requires more extensive monitoring and management, which leads to higher costs for the service.
Service level agreements (SLAs)
SLAs that promise faster response times and more comprehensive coverage can increase managed security operation center pricing. The higher the service level and the more guaranteed support you require, the more you can expect to pay.
Incident response services
Including incident response services as part of your SOC offering can add significant costs, with some incidents potentially adding $10,000 to $100,000 or more per response. This is an important consideration if your organization requires rapid, comprehensive incident remediation.
How Much Does Managed SOC Typically Cost for Business Types?
The cost of Managed SOC services varies based on your business size and specific security needs. The total price typically includes:
- security tools;
- staffing and overhead;
- implementation and maintenance services;
- infrastructure and operational costs.
The managed security team covers all of this, while in the case of an in-house option, you’ll have to pay for these services additionally. For example, only staffing for the in-house SOC costs $150k - $300k for mid-sized businesses and $300 - 600k for large or highly regulated enterprises.
Here's a breakdown of how pricing can differ across different business types and regions.
Medium-sized businesses
Medium-sized businesses, which often have more complex security needs, may spend between $10,000 and $30,000 monthly in the United States. Annually, costs can range from $120,000 to $360,000, depending on the specific services required and the number of users.
In Europe, costs can vary widely, depending on the complexity of the services needed. The average numbers are $10,000 - $25,000 monthly and $120,000 - $300,000 annually.
In contrast, an in-house SOC team would cost you $83,000 - $133,000 monthly and $1,000,000 - $1.6M annually.
Large enterprises
For large enterprises, especially those in highly regulated industries, Managed SOC services can cost $30,000 or more monthly and $360,000 - $1.2M annually in the United States. Establishing an in-house SOC for such organizations could cost $167,000 - $333,000 monthly and $2M - $4M annually when factoring in infrastructure, staffing, and operational expenses.
In Europe, these numbers are $20,000 - $83,000 monthly and $240,000 - $1M annually for managed SOCs. And for the in-house option, these numbers are much higher: $160,000 - $330,000 monthly and $2M - $4M annually.
Different Pricing Models for Managed SOC
Managed SOC services come with various pricing models, each catering to different business needs and budgets. Here's a simple breakdown of the most common options.
Tiered pricing
With tiered pricing, the cost depends on the service level you need. A tier is a level of cybersecurity service. Each tier provides a set of features and capabilities tailored to varying business needs. The higher the tier, the more advanced the features and the level of service provided.
For example, a basic tier might only include essential monitoring and alerting. In contrast, higher tiers could offer more comprehensive services, such as proactive threat hunting, advanced incident response, and compliance management.
You can select the service level that aligns with their size, budget, and security requirements. You can also start with a more basic service and upgrade as their security needs grow.
Flat-rate pricing
Flat-rate pricing charges a fixed amount, no matter how many users or devices you have. This model gives businesses predictable costs but might not work for those with varying security requirements.
Custom pricing
For businesses with specific needs, custom pricing is the best option. It’s tailored to your unique security setup, considering factors like network complexity and required incident response services. This model is often used by larger companies with more complex needs.
Each model serves different needs. The key is to choose one that fits both your budget and the level of service your business requires.
Hidden Costs of Managed SOC Services
While the upfront costs of a managed SOC service are relatively clear, businesses should be aware of potential hidden costs. Here are a few that may come into play:
Setup fees
Some providers charge an initial setup fee to deploy the necessary infrastructure, integrate with existing systems, and configure the SOC to your environment. These fees are typically one-time charges, but they can still add up.
Additional tools and integrations
If your organization requires specific security tools or integrations that are not included in the standard managed SOC package, you may face additional costs. These tools could include firewalls, intrusion detection systems, or other advanced security measures.
Ongoing maintenance and upgrades
SOC providers may offer regular maintenance and updates to ensure that their services remain up-to-date with the latest security threats. These services may incur additional costs, especially if you require frequent upgrades or customized support.
Checklist: How to Choose a Managed SOC Service Based on Your Budget
Choosing the right managed SOC service is an important decision. Use this checklist to ensure you’re making an informed choice based on your budget.
Step 1. Define your security needs
What level of security monitoring and incident response do you need? Make sure the service includes the features that matter most to your business, such as real-time monitoring or advanced threat intelligence.
Step 2. Choose a suitable managed SOC model
Next, choose a model that fits your organization. Each option comes with its own price range and service offerings:
Fully managed SOC
This is an outsourced service where the provider handles all aspects of security monitoring, threat detection, and incident response. This model is ideal for businesses looking for complete security coverage without managing the infrastructure internally.
Co-managed SOC
In this case, the provider collaborates with your in-house team to manage security operations. It offers flexibility, allowing businesses to share responsibilities while leveraging external expertise.
SOC as a Service (SOCaaS)
SOCaaS is a subscription-based model where the provider offers security monitoring and management. This model is cost-effective and scalable, suitable for businesses needing on-demand, flexible security services.
Step 3. Evaluate pricing models
Consider whether a per-user, tiered, or custom pricing model works best for your managed SOC budget and organization’s needs. Look at the long-term costs to ensure your choice fits within your budget.
Step 4. Check for hidden costs
Be aware of any setup fees, tool integrations, or ongoing maintenance costs that might not be immediately clear. Ensure that you understand all potential expenses upfront.
Step 5. Assess compliance and regulatory needs
If your business operates in a regulated industry, ensure the SOC service provider can meet compliance standards. Ensure these services are included in the pricing to avoid additional costs.
Step 6. Consider future scalability
Make sure the service can grow with your business. A solution that can easily scale as your needs evolve will save you money in the long term.
Ready to Secure Your Business with a Managed SOC?
Cyber threats are unpredictable, but the security of your business doesn’t have to be. Instead of struggling with the complexities of building and maintaining an in-house team, we offer access to highly skilled professionals – the kind of expertise that usually comes with hefty recruitment and training costs, not to mention the ongoing overhead of managing your own security staff.
We give you a team of seasoned cybersecurity experts who are always a step ahead in the battle against threats, all at a fraction of the cost it would take to assemble such a team internally. From staffing and overhead to implementation and maintenance, we take care of everything.
Our experts are dedicated to ensuring your systems remain secure with proactive threat detection, rapid incident response, and continuous monitoring, all without requiring you to manage the infrastructure or deal with the operational burden. This allows you to streamline your resources, reduce costs, and stay focused on growing your business.
We don’t just provide a service; we become your trusted partner, committed to safeguarding your business from potential threats. With TechMagic, your security becomes a strategic advantage that allows you to confidently move forward, knowing that your infrastructure is always secure and protected.
Let’s work together to ensure your business is ready for whatever comes next, with security you can trust and a team you can count on.
Final Thoughts
Cybersecurity is vital for your business. With cybercrime expected to cost the global economy $10.5 trillion annually by 2025, the risks are rising. As threats become more complex, it’s essential to have a reliable solution in place.
Managed SOCs offer a flexible, cost-effective way to protect your business. They provide round-the-clock monitoring, real-time threat detection, and fast incident response without the need for a large internal team. Outsourcing frees up resources to focus on what truly matters: growing and developing your business.
Pricing for managed SOC depends on factors like the scope of services, the size of your business, and your specific security needs. The more comprehensive the service, the higher the budget for managed SOC, with larger organizations or those in regulated industries often requiring more advanced solutions.
A managed SOC grows with you, adapting to new challenges as your needs change. These services can scale to meet them, ensuring your business stays protected without breaking your budget.
FAQ

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What does managed SOC mean?
A Managed Security Operations Center (Managed SOC) is an outsourced service that provides continuous monitoring, detection, and response to cybersecurity threats for businesses. It involves a team of experts who use advanced tools and processes to protect an organization's network, systems, and data. Unlike an in-house SOC, a managed SOC allows businesses to focus on their core activities while ensuring their digital infrastructure is secure around the clock.
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Do managed SOC providers offer scalable pricing as the business grows?
Yes, many managed SOC providers offer scalable pricing models to accommodate businesses as they grow. As your business expands, your security needs may become more complex, and a proper managed SOC provider will adjust the services and pricing to match. Whether it's adding more users, increasing monitoring capabilities, or adding more advanced features, the scalable cost for managed SOC ensures that the service can evolve with your business without sudden, unexpected costs.
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What factors influence the cost of Managed SOC services?
The pricing for managed security operation center is influenced by several factors, including the scope of services, the size of the organization, and the level of customization required. Businesses with more complex needs, such as regulatory compliance or advanced security features, will typically incur higher costs. The provider's geographic location and the chosen pricing model, whether per-user, tiered, or custom, also impact pricing. These elements together determine the level of protection and support your business will receive.