1 What is XDR?

XDR, or Extended Detection and Response, has rapidly emerged as a pivotal cybersecurity solution, sought after by diverse organizations for its comprehensive observability and remediation capabilities across endpoints and networks. Distinct as a security solution category from Endpoint Protection Detection & Response (EPDR) and Network Detection & Response (NDR), XDR encompasses both EPDR and NDR functionality alongside security tools tailored for cloud environments, in order to facilitate a more complete approach to cybersecurity. The rise of XDR can be attributed at least partially to the burgeoning threat of ransomware, as its multi-faceted attack stages are often challenging to detect. Unlike standalone EPDR, which might miss attacks that use compromised credentials without malware, the integration of NDR in XDR closes the observability gap by monitoring network traffic, from which it remains challenging for attackers to erase evidence.

XDR appeals primarily to SMBs and mid-market companies seeking a reduction in security stack complexity and contract burdens, whereas larger enterprises still seem to prefer a best-of-breed strategy utilizing multiple specific security products. XDR solutions amalgamate several security functionalities including EPDR, NDR, Cloud Workload Protection Platform (CWPP), and Cloud Security Posture Management (CSPM), among others. For a complete solution, XDR should provide endpoint agents, network sensors, and agents for cloud instances and containers.

A defining aspect of XDR is its use of artificial intelligence (AI) and machine learning (ML) technologies to identify malware and analyze behavioral patterns, deploying cloud-first technologies for its SaaS management consoles, often hosting customer incident data within cloud environments. Like most EPDR and NDR solutions, XDR maps events against the MITRE ATT&CK Framework, cataloging various techniques and tactics employed by threat actors. Early XDR adopters were primarily in North America, but XDR is anticipated to proliferate rapidly on a global scale.

XDR is appealing to mid-market organizations for its capacity to simplify security architectures by combining endpoint, network, and cloud security into a single product. Such integration sometimes can eliminate need for a separate Security Orchestration, Automation, and Response (SOAR) system for purely remediating cyber incidents. However, most XDR solutions are not designed explicitly for assisting with regulatory compliance requirements, so many organizations that deploy XDR still need Security Information and Event Management (SIEM) systems. Effective XDR solutions enable direct network sensing capabilities, minimizing reliance on endpoint agents or device logs, which often yield inefficiencies and reduced visibility. Additionally, XDR solutions are structured to include manual and automated response capabilities, though many firms opt to maintain human analysts within the decision loop to escalate response actions when necessary.

Single-vendor XDR solutions may offer tighter integration and cost-effectiveness, yet open XDR models emphasize robust interoperability across a range of security products. These integrated solutions simplify detection of early-stage, malware-less cyberattacks using compromised credentials or insider threats, significantly enhancing the organization’s cybersecurity posture. Moreover, XDR's extensive capabilities are critical for cloud security, protecting infrastructure and data hosted on cloud platforms without requiring multiple separate point solutions.

Endpoint agents must be compatible with a wide range of operating systems such as Windows, Linux, Mac, and virtual desktops. Since many organizations are still using older versions of operating systems, some XDR products have agents for older and even out-of-vendor-support OSes. These agents should function autonomously, supporting multiple malware pre-execution detection engines to proactively mitigate threats. Near real-time monitoring of anomalous behavior, as well as the detection and prevention of file-less malware and ransomware, are necessary to respond swiftly to emerging threats. XDR solutions must incorporate ML for advanced malware analysis and detection of malicious activity, complemented by sandboxing for isolating suspicious files and applications. Exploit prevention and the integration of endpoint firewalls, application control, URL filtering, and system file integrity monitoring are other important features of XDR agents. Effective security responses at the endpoint level should include process termination, file quarantining, evidence collection, and system rollback capabilities.

In the realm of network and cloud security, XDR solutions require on-premises network sensor deployment options, including appliances, virtual appliances, containers, and VM images. Establishing an environment baseline and analyzing encrypted traffic without decryption are vital for identifying deviations and potential threats. Network security responses should include initiation of full packet capture, session termination, subnet isolation, and IP/URL/host level blocking to counteract threats effectively. Support for infrastructure as a service (IaaS), platform as a service (PaaS), database as a service (DBaaS), containers, and orchestration is essential to provide protection for various cloud environments. Cloud security responses should facilitate operations like enabling or disabling users and starting or stopping instances to maintain security protocols.

Common XDR functionalities include support for Cyber Threat Intelligence (CTI) standards and integration which allow customers to draw upon the latest threat data. Interfaces for analysts, threat hunters, and forensic investigations should be intuitive. Automated responses via the playbook model, interactive queries, live remote memory examinations, and automated evidence collection are other expected features of XDR solutions. Case management should be built-in, and integrations with external IT Service Management (ITSM) solutions should be available. Customizable dashboards and reports for SOC managers as well as executives should be present. Customization of indicators of compromise (IoC) and automatic updates of detection rules enhance full-featured XDR systems’ adaptability and precision. Multi-factor authentication (MFA) and role-based authorization must be present in order to safeguard access to the XDR console itself, while API extensibility allows for integration with other IT and security tools.

In terms of innovative capabilities, the previously mentioned open XDR architecture, which facilitates integration with third-party agents and sensors, is considered forward-thinking. But XDR products should not lack fundamental supports such as endpoint agents or network sensors. Support for protocols associated with operational technology (OT), industrial control systems (ICS), the industrial internet of things (IIoT), and critical infrastructure is necessary for organizations with those environments. Mobile support and cloud sandbox integration allow for wider protection scopes. Delegated administration provides management flexibility an increases suitability for operation by Managed Security Service Providers (MSSPs) and Managed Detection and Response (MDR) firms. Some XDR vendors offer their products as a service directly. Deception functions, including the ability to define and monitor traps and lures, can serve to mislead attackers and enhance detection capabilities. Lastly, some XDR solutions have data leakage protection and cloud access security broker features.

The market analysis of XDR indicates a growth trend driven by increasing cybersecurity threats, a desire simplify security software contract management, and a need to reduce spending on discrete security solutions. Most organizations do have at least basic endpoint security in place, but not all have NDR capabilities. The need to add NDR to cybersecurity architectures is also increasing the uptake of XDR.