The Security Operations Center (SOC) is central to this defense strategy – a dedicated hub for monitoring, detecting, and responding to security incidents. But as businesses grapple with establishing their in-house SOCs or outsourcing to specialized Managed Security Service Providers (MSSPs), many considerations come into play. 

In this article, we discuss the complexities of these choices, shedding light on the benefits of managed security. 

What is a SOC?

A Security Operations Center (SOC) is a centralized facility where a team of IT professionals actively monitors and defends an organization against cybersecurity threats in real-time. Think of it as the command center or the war room for cybersecurity.

In today’s digital age, cyber threats are evolving at an unprecedented rate. The potential damage to an organization’s reputation, finances, and operations is immense, from ransomware attacks to data breaches. A SOC acts as the first line of defense, ensuring that threats are detected, analyzed, and mitigated before they can cause significant harm.

The critical components of a SOC are:

• People: A team of skilled cybersecurity professionals, including analysts, incident responders, and threat hunters.
• Processes: Standardized procedures for detecting, analyzing, and responding to security incidents.
• Technology: Advanced tools and software, such as Security Information and Event Management (SIEM) systems, intrusion detection systems (IDS), and threat intelligence platforms.

What Are the Types of SOCs?

While SOCs have a few core functions, there are several different ways in which they may be deployed. Some of these primary organizational styles include the following SOC types:

• The In-house SOC is a model managed and operated internally by the organization. This involves setting up a dedicated facility, hiring cybersecurity professionals, and investing in the necessary tools and technologies. It offers full control over the operations, tools, and data and often results in faster incident response due to the proximity and familiarity with the organization’s infrastructure. However, the challenges include a high initial investment, difficulty recruiting and retaining skilled cybersecurity professionals in a competitive market, and potential scalability issues.
• The Outsourced SOC, managed by third-party providers known as Managed Security Service Providers (MSSPs), allows organizations to contract these experts to monitor and defend their digital assets. This model is particularly cost-effective as it eliminates the need for a large upfront investment, with organizations typically paying a subscription or service fee. The downsides include having less control over operations, potential data privacy concerns due to third-party access to sensitive data, and possible latency in response times.
• The Hybrid SOC model (sometimes called co-managed SOCs) combines elements of both in-house and outsourced SOCs. Organizations might manage certain critical aspects internally while outsourcing other functions to MSSPs. This approach balances control and cost-effectiveness, allowing organizations to focus internal resources on core competencies while leveraging external expertise for specific functions. It’s adaptable and can quickly shift between in-house and outsourced models based on changing needs. However, managing it can be more complex.
  
• A Virtual SOC challenges the traditional notion of a “center” by decentralizing all elements, especially with cloud connectivity. The SOC team can work remotely, coordinate processes securely, and store hardware in a distant server room.

While larger enterprises might lean towards the in-house model for its control and customization, smaller businesses might find the outsourced model more appealing for its cost-effectiveness and expertise. The hybrid approach offers a flexible middle ground, ensuring effective defense against cyber threats and safeguarding the organization’s digital assets.

What Are the Benefits of In-House SOCs?

Having dedicated security is always a huge boon for any company. Specialty tech companies and large enterprises often build SOC functionality internally, under the direct management of a CTO, CIO, or CISO. 

Some of the main benefits of an in-house SOC include:

• Dedicated Resources: An in-house SOC means dedicated resources solely focused on the organization’s security. This can lead to a more concentrated and specialized approach to cybersecurity.
  
• Customization and Tailoring: An in-house SOC can be designed and structured specifically to meet the unique needs and requirements of the organization. This means organizations can customize the tools, processes, and protocols to fit the company’s infrastructure, risk profile, and business objectives.
• Control and Oversight: Organizations have full control over the operations, tools, data, and decision-making processes. This can lead to a more cohesive security strategy and ensure all actions align with the company’s goals and policies.
• Faster Response Times: Being on-site and deeply integrated with the organization’s IT infrastructure, an in-house SOC can often detect and respond to threats more quickly. The team’s familiarity with the internal systems and networks can lead to more efficient incident handling.
• Data Privacy and Confidentiality: Keeping the SOC in-house ensures that sensitive data remains within the organization. This reduces the risk of data breaches or leaks when sharing information with third-party providers.
• Costs: While the initial setup of an in-house SOC can be costly, in the long run, organizations benefit from more predictable operational costs, as opposed to variable costs that arise from outsourced services.
• Regulatory Compliance: For some industries, having an in-house SOC can assist in meeting specific regulatory or compliance requirements, especially when data handling and processing are concerned.

While these benefits make a compelling case for an in-house SOC, organizations must weigh them against the challenges, such as the initial investment, talent acquisition, and continuous training and technology upgrades.

What Are the Benefits of an Outsourced SOC?

Not every business can build an internal SOC, however. Small businesses or startups typically aren’t in a place to field entire security departments, and yet still need advanced cybersecurity for their infrastructure.

Outsourcing the Security Operations Center (SOC) to a third-party provider, often known as a Managed Security Service Provider (MSSP), comes with its own set of advantages:

• Cost-Effectiveness: Outsourcing can eliminate the need for a large upfront investment in infrastructure, technology, and personnel. Organizations typically pay a subscription or service fee, which can be more budget-friendly, especially for smaller businesses.
• Access to Expertise: MSSPs specialize in security operations and often have a broader view of the threat landscape due to their work with multiple clients. This can provide organizations with insights and expertise that might be challenging to develop in-house.
• Scalability: Outsourced SOCs can easily scale their services up or down based on the organization’s needs, allowing for flexibility as the business grows or as threat scenarios change.
• Advanced Technologies: MSSPs often invest in the latest security tools and technologies to serve a wide range of clients. Organizations can benefit from these advanced solutions without having to invest in them directly.
• Regular Updates and Reporting: MSSPs typically provide regular reports on security status, incidents, and other relevant metrics, ensuring transparency and keeping the organization informed.
• Compliance and Standards: Many MSSPs are compliant with industry standards and can help organizations meet specific regulatory requirements related to cybersecurity.

While outsourced SOCs offer numerous benefits, organizations should also consider potential challenges, such as data privacy concerns, less direct control over operations, and the need for clear communication and coordination with the third-party provider.

Why Is Internal Security Important for Third-Party SOCs?

Third-party SOCs, especially those operated by reputable Managed Security Service Providers (MSSPs), typically prioritize their internal security to maintain their reputation and ensure the trust of their clients. However, the extent to which they manage their security internally versus relying on external services varies based on several factors:

• Core Competency: Since cybersecurity is the core competency of MSSPs, they often have the expertise and resources to manage most, if not all, of their internal security needs. It would be counterintuitive for a security-focused entity to outsource its primary function.
• Specialized Services: While the core security operations might be managed in-house, there could be specific specialized services or tools that an MSSP might procure from external vendors. For instance, they might use a third-party tool for vulnerability scanning or penetration testing, but the overall security management and the response would be handled internally.
• Infrastructure and Cloud Services: Many MSSPs host their infrastructure using third-party cloud providers or data centers. In such cases, the cloud provider might manage the physical and some aspects of the infrastructure security. However, the MSSP would still be responsible for the security of the data and application.
  
• Collaborative Defense: Cybersecurity is constantly evolving, and collaboration is crucial. MSSPs might participate in threat intelligence sharing networks or consortiums where information about emerging threats is shared among members. This isn’t outsourcing in the traditional sense but rather a collaborative approach to defense.
• Regulations and Compliance: MSSPs must adhere to various industry standards and regulations, especially if they serve clients in regulated sectors like finance or healthcare. This often requires them to undergo regular third-party audits and assessments to validate their security posture.
• Redundancy and Backup: In some cases, MSSPs might have backup arrangements with other providers to ensure continuity of service in case of major incidents or disasters. This is more about business continuity and disaster recovery than outsourcing security per see.

Outsource Compliance with Lazarus Alliance

Distributed security services are becoming the norm as different specialties break off into dedicated managed service providers. Lazarus Alliance is a compliance and security provider with decades of experience in State and Federal standards, HIPAA, SOC 2, CMMC, NIST, and more.