Do you have in-house security expertise?

EDR tools are powerful, but they require trained security analysts who can interpret alerts, investigate threats, and coordinate responses. If you don't have a dedicated security team, EDR tools will generate alerts that go uninvestigated.

Can you afford downtime during an incident?

The average cost of downtime for SMBs is $5,600 per minute. MDR services provide immediate incident response, minimizing the window of exposure and reducing potential damage.

What compliance requirements do you have?

HIPAA, PCI DSS, SOC 2, and other frameworks often require 24/7 monitoring, incident response capabilities, and detailed logging. MDR services typically include compliance-ready reporting out of the box.

Is EDR enough for small businesses?

EDR can be sufficient if you have dedicated security staff who can monitor alerts, investigate incidents, and respond quickly. However, most small businesses lack this expertise, making MDR a more practical choice for comprehensive protection.

How much does MDR cost compared to EDR?

While MDR typically costs more than standalone EDR software, it eliminates the need to hire, train, and retain security analysts (which can cost $80,000-$120,000+ per year). For most SMBs, MDR delivers better ROI by providing enterprise-grade expertise at a fraction of the cost.

Can I switch from EDR to MDR later?

Yes, many organizations start with EDR and migrate to MDR as they grow. However, it's often more cost-effective to start with MDR from the beginning to avoid gaps in coverage during the transition.

What's the difference between MDR and MSSP?

Managed Security Service Providers (MSSPs) typically offer a broader range of security services, while MDR focuses specifically on threat detection and response. MDR providers offer deeper endpoint visibility and more aggressive threat hunting compared to traditional MSSP monitoring.

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EDR for Small Business: Complete Guide to Endpoint Protection in 2026

Traditional antivirus isn't enough anymore. Today's cybercriminals are professional, well-funded, and specifically targeting small businesses. According to Verizon's 2025 Data Breach Investigations Report, 88% of small and medium business data breaches now involve ransomware—nearly double the rate at larger organizations.

This guide helps you understand whether your small business needs basic antivirus, EDR (Endpoint Detection and Response), or fully managed MDR, with practical recommendations and real pricing data.

Do You Need EDR? Take the Assessment

Not sure which solution fits your business? Our free 3-minute assessment analyzes your risk profile, IT capabilities, and compliance requirements to recommend the right level of endpoint protection.

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What is EDR and Why Should Small Businesses Care?

Endpoint Detection and Response (EDR) is security software that continuously monitors your computers, laptops, and servers for malicious activity. Unlike traditional antivirus that relies on known virus signatures, EDR uses behavioral analysis to detect threats based on what they do, not just what they look like.

Why this matters for small businesses:

43% of data breaches involve small businesses (Verizon 2019 DBIR)
88% of SMB breaches now involve ransomware (Verizon 2025 DBIR)
Traditional antivirus misses a significant portion of advanced threats that use fileless techniques, living-off-the-land attacks, or zero-day exploits
Average breach cost for SMBs: $120,000-$200,000 (industry estimates)

What EDR Actually Does

Capability	Traditional Antivirus	EDR
Known malware detection	Yes	Yes
Zero-day threat detection	No	Yes
Fileless malware detection	No	Yes
Behavioral analysis	Limited	Advanced
Incident investigation	No	Yes
Threat containment	Limited	Yes (isolate endpoints)
Attack timeline reconstruction	No	Yes

EDR vs MDR: Which Do You Need?

The choice between EDR and MDR depends primarily on your in-house expertise.

Choose EDR If You Have:

IT staff with some security experience
Time to investigate and respond to alerts
Budget for tools but not managed services
Typical cost: $5-12 per endpoint/month

Choose MDR If You Have:

No dedicated security staff
Limited time to manage security tools
Need for 24/7 monitoring and response
Compliance requirements demanding expert oversight
Typical cost: $8-15 per endpoint/month

The key question: What happens when you get a security alert at 2 AM? If the answer is "wait until morning," you probably need MDR.

EDR Solutions for Small Business: 2026 Comparison

Budget-Friendly Options ($5-8/endpoint/month)

ThreatDown (by Malwarebytes)

Best for: Budget-conscious SMBs with basic IT staff
Price: ~$5-8/endpoint/month
Pros: Easy deployment, affordable, good basic protection
Cons: Less advanced threat hunting than enterprise options

CrowdStrike Falcon Go

Best for: Growing businesses wanting enterprise-grade protection
Price: ~$5-9/endpoint/month (Falcon Go tier, depending on billing cycle)
Pros: Cloud-native, strong threat intelligence, scalable
Cons: Full features require higher tiers

Mid-Range Options ($6-12/endpoint/month)

SentinelOne Singularity

Best for: Tech-savvy teams wanting automation
Price: ~$6-12/endpoint/month
Pros: Autonomous response, rollback capability, minimal manual intervention
Cons: Advanced features have learning curve

Sophos Intercept X

Best for: Businesses wanting integrated security suite
Price: ~$8-12/endpoint/month
Pros: Deep learning AI, anti-ransomware, optional MDR add-on
Cons: Full value requires Sophos ecosystem

Managed EDR / MDR Options ($8-15/endpoint/month)

Huntress Managed EDR

Best for: SMBs without security staff
Price: ~$8-12/endpoint/month
Pros: 24/7 human SOC, <1% false positive rate, hands-off management
Cons: Less control for teams wanting hands-on management

Sophos MDR

Best for: Compliance-focused organizations
Price: ~$10-15/endpoint/month
Pros: Expert threat hunting, compliance reporting, full incident response
Cons: Higher price point

Calculating Your EDR Budget

Use this formula to estimate your annual EDR investment:

Annual Cost = (Number of Endpoints) × (Price per Endpoint) × 12

Example for a 50-person company:

Basic EDR (ThreatDown): 50 × $6 × 12 = $3,600/year
Mid-range EDR (SentinelOne): 50 × $9 × 12 = $5,400/year
Managed MDR (Huntress): 50 × $10 × 12 = $6,000/year

ROI perspective: The average SMB breach costs $120,000-$200,000. A $5,000/year EDR investment that prevents even one incident delivers 20-40x ROI.

When to Upgrade from Antivirus to EDR

Consider upgrading when:

You handle sensitive data - Customer PII, financial records, health information, or intellectual property
You have compliance requirements - HIPAA, PCI-DSS, SOC 2, CMMC, or cyber insurance mandates
You've experienced incidents - Ransomware attempts, phishing compromises, or malware infections
Your workforce is remote/hybrid - Traditional perimeter security doesn't protect home networks
You're in a high-risk industry - Healthcare, finance, legal, technology, or government contracting

Implementation: Getting Started with EDR

Phase 1: Assessment (Week 1)

Inventory all endpoints (laptops, desktops, servers)
Identify sensitive data locations
Document compliance requirements
Evaluate internal IT/security capabilities

Phase 2: Selection (Week 2)

Request trials from 2-3 vendors
Test deployment on a small group
Evaluate alert quality and false positive rates
Assess management console usability

Phase 3: Deployment (Weeks 3-4)

Deploy agents in monitoring mode first
Tune policies to reduce noise
Establish alert response procedures
Train IT staff on investigation workflows

Phase 4: Optimization (Ongoing)

Review weekly alert summaries
Adjust detection sensitivity as needed
Conduct quarterly security reviews
Plan for annual vendor reassessment

Common Mistakes to Avoid

1. Choosing based on brand recognition alone Enterprise leaders like CrowdStrike and SentinelOne are excellent, but SMB-focused solutions like Huntress may be better fits for businesses without security teams.

2. Underestimating operational overhead EDR generates alerts that require investigation. If you can't commit time to reviewing alerts, choose managed MDR instead.

3. Ignoring integration requirements Ensure your EDR integrates with existing tools (Microsoft 365, Google Workspace, PSA/RMM if you're an MSP).

4. Skipping the trial period Always run a 14-30 day trial. Alert quality and false positive rates vary significantly between products.

5. Forgetting about servers EDR isn't just for workstations. Servers often contain your most valuable data and need protection too.

Next Steps

Take the assessment above to get a personalized recommendation
Calculate your budget using the formula provided
Request trials from 2-3 solutions matching your profile
Need help evaluating options? Contact our team for vendor-neutral guidance

Complete Guide: Choosing Between MDR, EDR, MSSP, XDR, and SOC
MDR Vendor Performance Benchmarks: The Metrics That Matter
CrowdStrike vs Huntress: Which Platform is Right for Your SMB?
Cybersecurity Maturity Assessment - Evaluate your overall security posture

EDR for Small Business: Complete Guide to Endpoint Protection in 2026

Do You Need EDR? Take the Assessment