Deepwatch and the MDR market receive a $180 million injection as organizations look to cut costs

The mantra for business security in 2023 is “doing more with less”. Of economists saying there is a 63% chance of a recession in the next 12 months, cost efficiency is a requirement for even the best equipped security teams. All of these factors are leading to increased interest in managed detection and response (MDR) solutions.

Today, MDR provider Look deep announced it has raised $180 million in funding from Springcoast Capital Partners, Splunk Ventures and Vista Credit partners to meet growing demand for managed security services.

Deepwatch provides organizations with a cloud security platform designed to provide 24/7/365 automated detection and response to cyber threats, as well as on-demand support from security experts who can help resolve security incidents.

MDR solutions such as those offered by Deepwatch have the potential to enable security leaders to continue protecting their data in complex cloud environments while reducing initial expenditure on technologies and technical staff.

How MDR helps reduce security costs

The biggest advantage of MDR solutions is the ability to eliminate the need to build, staff and maintain an on-site security operations center (SOC).

Internal SOCs are so expensive that according to netsurionSetting up a facility can cost anywhere from $1.5 million to $5 million per year, depending on the technology used and the experience of the analysts involved.

This is a significant investment, and as the attack surface continues to grow as organizations adopt hybrid and multi-cloud deployments, there is always an opportunity to expand spending as new solutions emerge to secure these environments.

Simultaneously with research With 83% of cybersecurity teams experiencing a talent shortage, it’s becoming increasingly clear that a do-it-yourself approach to security isn’t working for a large number of organizations.

MDR addresses these challenges by enabling security teams to outsource to a third-party SOC that has the technologies and expertise they need to secure their environments, without the need to purchase any elements up front.

“MDR providers strengthen, populate and enhance customers’ internal security teams and security operations,” said Charlie Thomas, CEO of Deepwatch.

He continued, “Security teams leverage MDR providers to gain 24/7 monitoring of their security events, enhance the expertise of their internal SOC analysts, provide stability when personnel leave the organization, assist with or conduct response actions and detect and contain threats that provide assurance. that cyber attackers are not in the IT environment.”

The approach of Deepwatch and MDR providers is not to replace the security team, but to expand it so that they can access additional technologies and expertise on a subscription basis.

A look at the MDR market

The MDR market is growing rapidly, with Gartner estimates it will generate $2.15 billion in revenue by 2025, up from $1.03 billion in 2021, and growing at a compound annual growth rate (CAGR) of 20.2%.

Deepwatch competes with a wide variety of providers in the space, including Sophoswhich offers an MDR with customizable service levels.

Sophos’ core solution provides access to more than 500 security experts who can support organizations with threat hunting, in-depth malware analysis and incident response for both human and AI-driven threats. Thomas Bravo bought Sophos in January 2020 for $3.8 billion.

Another major competitor in space is Arctic Wolfthat provides organizations with 24/7 monitoring of networks, endpoints and cloud environments.

Arctic Wolf maintains a team of cybersecurity experts who can investigate suspicious activity within an organization’s network to identify legitimate breaches or false positives and respond with root cause analysis to investigate intruders.

It’s worth noting that Arctic Wolf secured $401 million in funding last year as part of a offer of convertible bonds.

However, Thomas says that what sets Deepwatch apart from other MDR providers is its focus on supporting large enterprises.

“While other MDRs serve the security teams of small to medium sized businesses, Deepwatch is the leader in enterprise MDR and serves the Fortune 2000,” he said. This is with “a dedicated team of cyber experts who learn their clients’ unique environments and serve as an extension of their internal teams.”