How managed XDR boosts cyber security visibility for SMEs

According to Richard Dornhart, National Practice Manager – Security at Data^#3, many SMEs mistakenly believe they are too insignificant to be targeted.

"Cyber attackers exploit vulnerabilities wherever they find them, and SMEs with limited resources are easy targets," Dornhart said.

In response to this growing risk, Data^#3 has introduced its Managed Extended Detection and Response (MXDR) service, aimed at transforming cyber security for resource-constrained businesses.

Built on Microsoft's security platforms, the service promises enterprise-grade protection, proactive threat detection, and 24/7 expert monitoring.

Unlike traditional, standalone security tools, MXDR connects data across endpoints, networks, servers, cloud services, and email systems, using advanced analytics to detect and respond to threats in real time.

"With Data^#3, you get the platform and a 24/7 expert team in a Managed Security Operations Centre (SOC), powered by SecurityHQ, lifting the burden from your in-house team and strengthening your cyber defence," Dornhart said.

One of the key advantages of the MXDR approach is visibility. Dornhart stressed that the aim is not to overwhelm businesses with raw data but to offer contextual understanding and actionable insights.

"Visibility isn't about being a passive observer; it's about deeper understanding through a sophisticated process of gathering, interpreting, and acting on security information," he explained.

This visibility helps SMEs cut through the noise of irrelevant alerts. Dornhart noted that many businesses already "swim in alerts" but lack the means to distinguish between harmless anomalies and genuine threats. MXDR provides a clear, unified view of security events, enabling targeted and timely action.

"Instead of your IT team spending hours chasing red herrings, they get immediate, actionable insights: 'Here's what's happening, why it matters, and here's what we can collectively do about it,'" Dornhart said.

Scott Gosling, National Practice Manager for Microsoft at Data^#3, highlighted the scope of the protection offered. "If you wanted to build the most effective, overarching security service for your business, what would you include? You need to include a wide range of attack vectors, including users, infrastructure, devices, cloud applications, workloads, data stores and data centres," Gosling said.

He added that artificial intelligence (AI) plays a central role in simplifying analysis and accelerating threat response. "You'd expect it to go beyond just alerting you when something is wrong. You'd want deep insights, intelligence, and automation, delivered by a platform that doesn't need a data scientist to run it."

Dornhart explained that MXDR's behavioural analytics help detect insider threats, such as unusual login activity or unauthorised downloads.

Based on predefined workflows, the system can automatically flag suspicious behaviour and allow the security team to freeze access before any damage occurs. Similarly, in the event of a phishing attack, MXDR correlates data from multiple sources, and based on predefined workflows, can isolate affected systems, block malicious domains and quarantine/remove potentially harmful emails.

AI and machine learning underpin the platform's ability to detect anomalies and emerging threats. Dornhart described this as intelligence "beyond human limits," capable of identifying subtle indicators of compromise that might otherwise go unnoticed.

"With XDR, the system can not only detect but also act on certain threats instantly," Dornhart said.
This speeds up threat containment and allows human analysts to focus on more complex tasks.

SMEs often lack the resources to manage a suite of security tools. MXDR helps by consolidating threat data from across the organisation and presenting it through a single, coordinated interface. "It turns the overwhelming complexity of modern IT environments into a manageable, actionable security posture," Dornhart said.

Gosling added that the service is tailored for Australian businesses but benefits from a global reach. "You may be an Australian-based organisation, but cyber threats are global, making it essential to incorporate global threat intelligence into your security strategy."

This integration is delivered through a partnership with SecurityHQ, a global provider of cyber security services.

According to Gosling, the result is "a unique combination of platform, expert team, and global reach that will elevate your cyber defence to a level unattainable with in-house resources alone."

MXDR also supports compliance and reporting, offering detailed logs to help SMEs meet regulatory requirements. "This is particularly valuable for SMEs that may lack dedicated compliance resources," Dornhart noted.

The service includes optional add-ons like Advanced Data Loss Prevention and Managed Sentinel Services for organisations with more complex needs. These features provide deeper forensic capabilities and stronger data protection.

Despite its enterprise-grade features, Dornhart emphasised that the service remains affordable. "MXDR is crafted to be cost-effective and predictable, enabling SMEs to access enterprise-grade security without the difficulties of configuring, deploying, and managing it internally."

In Gosling's words, "MXDR by Data^#3 is the most effective, overarching security service for your business."

As cyber threats continue to evolve and SMEs remain high-risk targets, services like Data^#3's MXDR offer a vital lifeline. By delivering round-the-clock protection, AI-driven insights and a fully managed security operation, it enables businesses to safeguard their digital environments with confidence.