Home Technology The True Cost of an In-House Security Operations Center (SOC)

The True Cost of an In-House Security Operations Center (SOC)

Source: securitymagazine.com

For security-conscious organizations, having a 24/7 SOC to monitor threats and respond to incidents is essential. However building an internal SOC requires substantial investments in staffing, infrastructure, and management overhead. That’s why outsourcing to an experienced SOC-as-a-service provider can be far more cost-effective.

Source: ciosea.economictimes.indiatimes.com

Most sources estimate an in-house SOC costs between $2-4 million annually, with expenses driven by:

  • Security Analyst Salaries – A 24/7 operation requires at least 8-12 analysts working rotating shifts at competitive cybersecurity pay rates.
  • Management/Supervision – Additional leadership roles like a SOC manager, threat intel director, and other specialized positions add costs.
  • Technology Infrastructure – SIEM, endpoint detection, firewalls, IDS/IPS, and other core SOC systems require significant CapEx and ongoing support/maintenance.
  • Facility Costs – Dedicated real estate, power redundancy, and other facility considerations for the SOC team’s operations center.
  • Tool Licenses – Subscriptions and licenses for security platforms from providers like Splunk or Palo Alto Networks pile up.
  • False Positives – Alert fatigue from managing false positives reduces analyst productivity and effectiveness.
  • Training – Ongoing training on new threats and tool proficiency is essential to avoid analysts from falling behind in emerging attacks.

These numerous costs add up, resulting in massive outlays before an internal SOC is even operational. And scaling up staffing or tech becomes costly due to the fixed overhead.

Source: digitalhands.com

The Benefits of Leveraging Managed SOC Services

Partnering with an experienced SOC-as-a-Service provider offers compelling advantages:

  • Immediate Threat Detection – You gain immediate access to advanced security without delays building in-house expertise.
  • Reduced Overhead – No need to hire, train, or manage your own staff.
  • Scalability – Easily increase or reduce monitoring scope based on your needs.
  • Lower False Positives – Sophisticated tools and processes filter out noise more effectively.
  • Proactive Threat Hunting – Specialized teams proactively hunt for threats and provide recommendations.
  • State-of-the-Art Technology – Leverage cutting-edge tech without the heavy lifting of managing it yourself.

Outsourcing services can deliver huge cost reductions compared to operating an in-house team. The lack of overhead for staffing, tools, and facilities accounts for much of the savings. Businesses also avoid the drag of false positives on productivity along with the hidden costs of employee turnover.

For organizations that still require internal security experts, outsourcing SOC activities allows those teams to focus on higher value tasks like strategic initiatives, risk management, and supporting business objectives. Relying on experts for 24/7 threat monitoring and response takes the burden off already overloaded security engineers.

Check out this SOC savings calculator to estimate just how much money your business can save by outsourcing.

Source: zpesystems.com

The Bottom Line

While building in-house SOC capabilities seems attractive on the surface, the substantial costs involved mean it is out of reach for many organizations. Engaging an established SOC-as-a-Service provider can deliver enterprise-grade threat monitoring at a fraction of the price. If the choice is between an overwhelmed, understaffed internal team versus specialized experts, the outsourcing option provides compelling advantages. Considering the range of mature managed security services available today, relying on your own resources is no longer the only path.