SOC as a Service vs. In-House SOC: Cost, Coverage and Control

Attackers don't keep office hours, so someone has to watch your environment around the clock. You have three ways to make that happen: build an in-house security operations center (SOC), buy SOC as a service from a managed security service provider (MSSP), or run a co-managed model that splits the work. The right answer depends less on technology than on staffing, cost and how much control you need.

This guide breaks down what managed security services include, the real cost of an in-house SOC, and how the models compare in 2026.

What managed security services include

Managed security services, delivered by an MSSP, usually cover some or all of the following:

• 24/7 monitoring and triage of alerts from endpoints, networks, cloud and identity systems.
• Threat detection and response, often through managed detection and response (MDR), including containment actions such as isolating a device.
• SIEM management: collecting, correlating and retaining logs.
• Vulnerability management: scanning, prioritization and patch tracking.
• Incident response support and post-incident reporting.
• Compliance reporting that maps activity to frameworks such as NIST CSF, CMMC, HIPAA or SOC 2.

"SOC as a service" is the monitoring-and-response core of that list, delivered from the provider's security operations center.

In-house SOC: the real cost

An in-house SOC gives you maximum control, but the costs add up quickly.

Staffing

True 24/7 coverage of a single analyst seat means covering 8,760 hours a year. With leave, training and sickness, that typically takes around five full-time people for one seat, before you add senior analysts, threat hunters, engineers and a manager. The US Bureau of Labor Statistics puts the median pay for information security analysts at $129,180 (May 2025), and the same source projects 21% job growth over the next decade, so competition for talent is not going away.

Tooling

A SIEM, endpoint detection and response, threat intelligence feeds, case management and log storage all carry licence, infrastructure and tuning costs. Log volume, and therefore cost, tends to grow every year.

Operations

Playbooks, detection engineering, continuous tuning to reduce false positives, and analyst retention all require ongoing management attention. Analyst burnout and turnover are among the most common reasons in-house SOCs underperform.

MSSP vs. in-house vs. co-managed

Compliance fit: CMMC, HIPAA and SOC 2

Continuous monitoring, log retention and incident response are expected under NIST SP 800-171 (and therefore CMMC), the HIPAA Security Rule and SOC 2. An MSSP can produce much of the operational evidence, but check that the provider's own environment, data location and access controls meet your obligations. For defense contractors, confirm how the provider handles controlled unclassified information (CUI) and whether its services fall inside your assessment scope.

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Red flags when evaluating an MSSP

• Alert forwarding instead of response: if they only email you alerts, you still need your own 24/7 team.
• Vague SLAs: ask for specific times to detect, triage, escalate and contain.
• No clear escalation path to a named person who knows your environment.
• Opaque pricing that climbs with log volume or incident count without warning.
• Weak reporting: you should get regular reports showing what was detected, what was done and how controls performed.
• No exit plan: you should own your logs, detections and documentation if you leave.

Managed security handles operations, but someone still needs to own strategy and risk. Our guides to fractional vs. virtual vs. full-time CISOs and vCISO vs. MSSP explain how leadership and operations fit together. If you are also cutting the number of security tools and contracts, see our article on cybersecurity vendor consolidation.

Frequently asked questions

What is SOC as a service?

SOC as a service is security monitoring, threat detection and response delivered by an external provider's security operations center on a subscription basis, instead of building and staffing your own SOC.

What is the difference between an MSSP and a SOC?

A SOC is the function and team that monitors and responds to threats. An MSSP is a company that provides managed security services, which usually include SOC monitoring along with other services such as vulnerability management and compliance reporting.

How much does an MSSP cost?

Most MSSPs price per endpoint, per user, per log volume or as a bundled monthly fee. Compare total cost against the salaries, tools and management time an in-house SOC would need for the same 24/7 coverage.

What SLAs should you expect from an MSSP?

Expect defined times for alert triage, escalation of confirmed incidents and containment actions, plus regular reporting. Critical incidents should be escalated to your named contacts within minutes, not hours.

Key takeaways

• Managed security services cover 24/7 monitoring, detection and response, SIEM, vulnerability management and compliance reporting.
• An in-house SOC offers the most control but needs around five people per 24/7 seat, plus tools and management.
• SOC as a service gives predictable cost and immediate 24/7 coverage; co-managed models combine internal knowledge with provider scale.
• Check that an MSSP's SLAs, reporting and data handling meet your CMMC, HIPAA or SOC 2 obligations.
• Pair operations with security leadership, whether that's a CISO or a fractional CISO.