Security teams evaluating modern security operations technologies frequently encounter both XDR and SOAR, often wondering how they differ and whether both are necessary. While these acronym-heavy platforms sound similar and both improve security operations, they serve fundamentally different purposes. This comprehensive guide compares XDR (Extended Detection and Response) and SOAR (Security Orchestration, Automation, and Response), examining their core capabilities, use cases, how they complement each other, and strategies for determining which your organization needs.
XDR vs SOAR: The Core Difference
XDR (Extended Detection and Response) is a threat detection and response platform that unifies security data from endpoints, network, cloud, and applications to detect threats through correlation and automated analysis, then responds within its integrated security ecosystem.
SOAR (Security Orchestration, Automation, and Response) is a workflow automation and orchestration platform that connects disparate security tools, automates repetitive tasks, and coordinates response actions across your existing security infrastructure regardless of vendor.
Key distinction: XDR is a unified detection platform with built-in response; SOAR is a universal automation layer sitting above your existing security tools.
XDR vs SOAR: Detailed Comparison
| Aspect | XDR | SOAR |
|---|---|---|
| Primary Purpose | Threat detection and unified response | Workflow automation and orchestration |
| Threat Detection | ✅ Core capability | ❌ Not a detection tool |
| Data Collection | Collects and analyzes security telemetry | Orchestrates tools that collect data |
| Scope of Automation | Within integrated security stack only | Across ALL security tools (vendor-agnostic) |
| Tool Integration | Native integration (vendor's products) | API-based integration (any vendor) |
| Workflow Focus | Security-specific workflows | Any workflow (security, IT, compliance) |
| Case Management | Basic incident tracking | Advanced case management & ticketing |
| Playbook Complexity | Pre-built for common scenarios | Highly customizable for any scenario |
| Typical Cost | $60-100 per endpoint/year | $50K-250K+ annually |
| Deployment Complexity | Moderate (agents + integrations) | High (API integrations + playbook dev) |
| Best For | Unified threat detection/response | Complex multi-tool environments |
Understanding XDR: Detection-Focused Platform
What XDR Provides
- Unified threat detection: Correlates security data from endpoints, network, cloud, email, identity
- Automated investigation: Constructs attack timelines and impact assessment
- Integrated response: Execute response actions within XDR ecosystem
- Pre-built content: Detection rules and response playbooks ready out-of-box
- Reduced false positives: Cross-layer correlation validates alerts
XDR's Automation Scope
XDR includes automation, but it's limited to the XDR vendor's integrated ecosystem:
- Isolate endpoints (within XDR's EDR component)
- Block IPs at firewall (if vendor's firewall integrated)
- Quarantine emails (if vendor's email security integrated)
- Disable user accounts (if identity integration present)
- Cannot automate: Actions in third-party tools outside XDR ecosystem
When XDR Alone is Sufficient
- Primarily use vendor's integrated security stack
- Simple, straightforward response workflows
- Limited third-party security tool integration needs
- Budget for one platform, not multiple
- Small to mid-sized security team
Understanding SOAR: Automation-Focused Platform
What SOAR Provides
- Security tool orchestration: Connect and coordinate actions across 50-200+ different security products
- Workflow automation: Automate repetitive security tasks (alert enrichment, containment, notifications)
- Case management: Track incidents through investigation and resolution lifecycle
- Playbook development: Create custom workflows for any security scenario
- Metrics and reporting: Track SOC efficiency, MTTR, automation rates
SOAR's Detection Limitations
SOAR does NOT detect threats itself:
- Receives detection inputs from other tools (SIEM, XDR, EDR, IDS, etc.)
- Enriches alerts with context from threat intelligence
- Automates investigation steps (IP lookups, user queries, endpoint scans)
- Orchestrates response across multiple tools
- Requires: Detection sources feeding it security alerts
When SOAR Adds Value
- Best-of-breed multi-vendor security stack (10+ tools)
- Complex workflows spanning multiple platforms
- High alert volumes requiring automated triage
- Custom response procedures unique to organization
- Large security team with dedicated automation engineers
- Integration needs beyond what XDR alone provides
Can XDR and SOAR Work Together?
Yes, and many organizations use both in complementary roles:
Integration Architecture
- XDR as detection engine: Identifies threats through unified correlation
- SOAR as orchestration layer: Receives XDR alerts and automates complex response workflows
- Data flow: XDR detects threat → Sends alert to SOAR → SOAR orchestrates response across XDR and non-XDR tools
- Example: XDR detects ransomware → SOAR isolates endpoint (XDR), blocks C2 IPs (firewall), disables user (AD), creates ticket (ServiceNow), notifies team (Slack)
When Combined Deployment Makes Sense
- XDR provides excellent threat detection but lacks automation for non-integrated tools
- Need orchestration across security tools XDR doesn't natively support
- Complex response procedures requiring coordination across 5+ platforms
- Custom workflows for organization-specific threats or compliance
- Mature security operations with resources for both platforms
XDR vs SOAR: Detailed Capability Comparison
Threat Detection
- XDR: Core capability - detects threats through data correlation ✅
- SOAR: Not a detection tool - relies on other tools for detection ❌
- Winner: XDR decisively
Automated Response (Within Vendor Ecosystem)
- XDR: Excellent for vendor's integrated products ✅
- SOAR: Limited to actions vendor's tools support
- Winner: XDR for native integration speed
Cross-Vendor Orchestration
- XDR: Limited to integrated partners only
- SOAR: Connects to any tool with API ✅
- Winner: SOAR decisively
Custom Workflow Development
- XDR: Limited to vendor-provided playbooks
- SOAR: Unlimited custom workflow creation ✅
- Winner: SOAR for flexibility
Time to Value
- XDR: 2-4 weeks with pre-built detection content ✅
- SOAR: 2-6 months due to integration and playbook development
- Winner: XDR for faster deployment
Total Cost of Ownership
- XDR: $60-100/endpoint/year (500 endpoints = $30K-50K annually)
- SOAR: $50K-250K annually + integration/development effort
- Winner: XDR for cost-effectiveness in simpler environments
Real-World Scenarios: Which to Choose
Scenario 1: Cloud-First Startup (Single-Vendor Stack)
Environment: 300 employees, Microsoft ecosystem (Defender for Endpoint, Defender for Cloud, Sentinel)
Recommendation: XDR only (Microsoft XDR)
- Why XDR: Single-vendor stack enables excellent XDR detection and response
- Why not SOAR: No multi-vendor orchestration needs; XDR automation sufficient
- Cost: $40K-60K annually (included in Microsoft E5 + Sentinel)
Scenario 2: Enterprise with Multi-Vendor Stack
Environment: 5,000 employees, best-of-breed approach (SentinelOne, Palo Alto firewall, Proofpoint email, Okta, Splunk SIEM, 20+ security tools)
Recommendation: XDR + SOAR
- XDR (SentinelOne Singularity): Unified endpoint, cloud, identity threat detection
- SOAR (Palo Alto Cortex XSOAR or Splunk SOAR): Orchestrates response across all 20+ tools
- Value: XDR detects; SOAR automates complex multi-tool response
- Cost: $200K XDR + $150K SOAR = $350K annually
Scenario 3: Mid-Market with Legacy Tools
Environment: 1,000 employees, legacy security tools (ArcSight SIEM, legacy AV, mix of firewalls), tight budget
Recommendation: SOAR first (automate existing tools), then XDR
- Phase 1: SOAR automates alert triage and response across legacy tools
- Phase 2: Deploy XDR while keeping SOAR orchestration
- Benefit: Immediate efficiency gains from existing investments before XDR
The Evolution: XDR Absorbing SOAR Capabilities
Market convergence is reducing the need for standalone SOAR in many environments:
XDR Platforms Adding SOAR Features
- SentinelOne Singularity: Remote Script Orchestration, PowerShell response actions
- Palo Alto Cortex XDR: Built-in playbooks and automation capabilities
- CrowdStrike Falcon: Fusion workflows for multi-tool orchestration
- Microsoft 365 Defender: Integrated with Sentinel's Logic Apps (full SOAR)
Result: Declining Standalone SOAR Adoption
- Organizations under 2,500 employees increasingly choosing XDR-only approach
- Standalone SOAR purchases declining 15-20% annually
- SOAR most relevant for complex, multi-vendor enterprise environments
- Vendors bundling SOAR with XDR/SIEM rather than selling separately
Decision Framework: Do You Need XDR, SOAR, or Both?
Choose XDR (Without SOAR) If:
- ✅ Single or few-vendor security stack
- ✅ Need unified threat detection (your primary gap)
- ✅ XDR's native automation meets your needs
- ✅ Budget for one platform only
- ✅ Small to mid-sized organization
- ✅ Want faster deployment and time-to-value
Choose SOAR (With Existing Detection) If:
- ✅ Already have good threat detection (SIEM, EDR, etc.)
- ✅ Best-of-breed multi-vendor environment (10+ tools)
- ✅ High alert volumes overwhelming team
- ✅ Complex workflows requiring cross-tool orchestration
- ✅ Have automation engineers to build/maintain playbooks
Choose Both (XDR + SOAR) If:
- ✅ Need unified detection AND multi-vendor orchestration
- ✅ Large enterprise with diverse security stack
- ✅ Complex response procedures spanning many tools
- ✅ Budget and resources for both platforms
- ✅ Mature security operations with dedicated teams
Cost Comparison: XDR vs SOAR
XDR Total Annual Cost (1,000 endpoints)
- Technology: $60-100/endpoint = $60K-100K
- Staffing: 1-2 analysts = $150K-300K
- Total: $210K-400K annually
SOAR Total Annual Cost
- Technology: $50K-250K (licensing varies widely by vendor)
- Integration services: $30K-100K (initial setup)
- Staffing: 1 automation engineer = $120K-180K
- Ongoing playbook development: $20K-50K annually
- Total first year: $220K-580K
- Total ongoing: $190K-480K annually
Combined XDR + SOAR
- Total cost: $400K-880K annually
- Justification required: Complex environment with clear automation ROI
Integration Best Practices: XDR + SOAR
Recommended Architecture
- Deploy XDR first: Establish unified threat detection foundation
- Operate XDR 3-6 months: Understand detection patterns and response needs
- Identify automation opportunities: Where does XDR automation fall short?
- Deploy SOAR selectively: Focus on workflows XDR can't handle
- XDR → SOAR integration: XDR alerts trigger SOAR playbooks for complex responses
Common Integration Use Cases
- Enrichment automation: SOAR queries threat intelligence, asset databases for context
- Cross-platform response: SOAR coordinates actions across XDR + firewall + proxy + AD
- Ticket management: SOAR creates/updates tickets in ServiceNow or Jira
- Communication: SOAR sends notifications via email, Slack, SMS
- Compliance workflows: SOAR documents all actions for audit trails
Where Does SIEM Fit? XDR vs SIEM vs SOAR
Since organizations often evaluate all three simultaneously:
| Platform | Primary Function | Key Strength |
|---|---|---|
| SIEM | Log management & compliance | Long-term retention, custom correlation |
| XDR | Threat detection & response | Unified visibility, fast detection |
| SOAR | Workflow automation | Cross-tool orchestration, efficiency |
Optimal Combinations
- Small org: XDR only (sufficient for most needs)
- Mid-market: XDR + SIEM (detection + compliance)
- Enterprise: SIEM + XDR + SOAR (comprehensive security operations)
Frequently Asked Questions
Should I buy XDR or SOAR first?
XDR first. You need threat detection before you can automate response. SOAR requires detection input from XDR, SIEM, or other sources. Deploy XDR, operate it to understand your workflows, then add SOAR if XDR's built-in automation proves insufficient for your needs.
Does XDR include SOAR capabilities?
Modern XDR platforms include SOAR-like features for automating responses within their ecosystems, but these aren't full SOAR replacements. XDR automation works great for actions within vendor's integrated products but cannot orchestrate third-party tools the way dedicated SOAR platforms can. Think of XDR as "SOAR-lite" for its own products.
Is SOAR worth the investment?
SOAR provides ROI for organizations with: high alert volumes (1,000+/day), many security tools requiring coordination, mature security teams capable of building playbooks, and budget for the platform plus automation engineers. For simpler environments or tight budgets, XDR's built-in automation often suffices without separate SOAR investment.
Conclusion: Choosing Between XDR and SOAR
The choice between XDR and SOAR isn't binary, they serve different purposes and often complement each other. XDR provides unified threat detection and response within vendor ecosystems, while SOAR orchestrates automation across diverse multi-vendor environments. Most organizations start with XDR for its threat detection capabilities and built-in automation. They add SOAR later only if they operate complex multi-vendor environments requiring orchestration beyond what XDR alone provides.
Key decision factors include:
- Security stack composition (single-vendor vs best-of-breed)
- Primary need (threat detection vs workflow automation)
- Organization size and complexity
- Available budget and resources
- Team capability to build and maintain automation
As XDR platforms mature and absorb SOAR-like capabilities, the distinction blurs. For many organizations, modern XDR platforms with enhanced automation capabilities eliminate the need for standalone SOAR, simplifying security operations while reducing costs.
SubRosa Cyber Solutions helps organizations architect optimal security operations technology stacks, including XDR and SOAR platform selection, deployment, and integration. Our security engineers evaluate your specific environment, tool landscape, and automation needs to recommend solutions delivering maximum value without unnecessary complexity or cost. We provide managed security services operating both XDR and SOAR platforms on your behalf for organizations preferring outsourced security operations. Schedule a consultation to discuss your XDR and SOAR requirements.