Comparing Costs: Building an In-House SOC vs. Third-Party Managed Cybersecurity for Businesses

The growing complexity of cyber threats makes safeguarding your data and infrastructure more challenging than ever. Establishing an in-house SOC versus opting for a third-party managed cybersecurity service involves various considerations, especially in terms of cost and effectiveness.
Cyber Security

Assuming a 24/7 operation, which requires min. 12 SOC employees, and tooling cost for a network that support 5,000 people, below is the average cost breakdown (in USD). 

Building an In-House SOC:

  • Initial Setup Costs:

    • Infrastructure: With the need for robust infrastructure to support a 24/7 operation and 5,000 users, initial costs can range from $300,000 to $1,100,000 or more.
    • Staffing: Given the requirement for a team of 12, considering various positions like analysts, incident responders, and a SOC manager, staffing cost might range from $1,200,000 to $3,900,000 annually.
    • Training and Certification: For 12 employees, yearly training costs could range from $36,000 to $120,000.
  • Ongoing Expenses:

    • Operational Costs: To maintain a 24/7 operation and support a network for 5,000 users, operational costs could vary from $250,000 to $500,000 or more per year.
    • Incident Response: Costs for incidents could range from $10,000 to $100,000 or more per incident.
    • Monitoring and Analysis: For continuous monitoring and analysis, expenses might range from $300,000 to $500,000+ annually.

Third-Party Managed Cybersecurity:

  • Initial Costs:

    • Service Subscription: With a requirement for a comprehensive 24/7 service for a network of 5,000 users, monthly subscription fees might range from $15,000 to $50,000 or more.
    • Onboarding Fees: Initial setup fees might vary from $50,000 to $100,000 based on the complexity of the onboarding process.
  • Ongoing Expenses:

    • Subscription Fees: Monthly costs could range from $20,000 to $80,000 or more, depending on the level of service required.
    • Updates and Upgrades: Additional charges for upgrades might vary from $10,000 to $50,000 or more annually.


The cost of an in-house SOC tends to be higher initially due to infrastructure and staffing expenses, whereas third-party managed cybersecurity monitoring services offer more flexibility in terms of subscription models but may incur ongoing costs.

Why business should run 24 by 7 cybersecurity monitoring

  • Immediate Threat Detection: Cyber threats can occur at any time. Having continuous monitoring ensures that any suspicious activity or threats are detected immediately, allowing for swift action to mitigate potential damage.
  • Reduced Response Time: With round-the-clock monitoring, the response time to cyber threats is significantly reduced. This quick response can prevent or limit the impact of a cyber attack, minimizing downtime and potential financial losses.
  • Protection of Sensitive Data: Businesses store vast amounts of sensitive information. Continuous monitoring helps safeguard this data from theft, ensuring the integrity and confidentiality of critical business and customer information.
  • Compliance Requirements: Many industries have regulatory requirements mandating continuous monitoring and proactive measures for cybersecurity. Meeting these standards is essential to avoid penalties and maintain trust with customers.
  • Proactive Defense: Continuous monitoring allows for the identification of vulnerabilities and weaknesses in a system or network before they are exploited by cybercriminals. This proactive approach strengthens the overall cybersecurity posture of the business.
  • 24/7 Operations: In a global economy where businesses operate around the clock, having cybersecurity monitoring that aligns with these hours is essential. Attacks can happen during off-peak hours when there might be fewer personnel available to respond.
  • Customer Trust and Reputation: A robust cybersecurity system reflects a commitment to protecting customer data. This can enhance trust and reputation, as customers are more likely to trust a business that takes its security seriously.

In essence, 24/7 cybersecurity monitoring isn’t just about identifying threats; it’s about staying ahead of them and ensuring that a business is as secure as possible in an increasingly digital world.

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