Total Economic Impact
Cost Savings And Business Benefits Enabled By Deepwatch MDR
A FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY Deepwatch , February 2026
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Total Economic Impact The Total Economic Impact™ Of Deepwatch MDRA FORRESTER TOTAL ECONOMIC IMPACT STUDY COMMISSIONED BY Deepwatch , February 2026 Cost Savings And Business Benefits Enabled By Deepwatch MDR
Executive SummaryOrganizations facing rising threat activity, expanding attack surfaces, and increasing operational complexity often struggle with fragmented security tooling, manual processes, and limited visibility across their environments. These conditions place pressure on resource‑constrained security teams and increase the likelihood of delayed detection, inconsistent response, and employee-facing disruptions.1 As a result, many enterprises are exploring partners that can provide continuous monitoring, deeper analytic support, and more consistent incident handling to help stabilize operations and strengthen security outcomes.2 Deepwatch MDR offers around‑the‑clock visibility, expert‑led event analysis, validated detections, and structured escalation workflows. The solution works within an organization’s existing security stack and can support or manage security information and event management (SIEM)‑related workflows as part of its service, including helping organize log data, tuning detections, and refining dashboards and visibility. Together, these capabilities can help organizations reduce alert noise, identify suspicious activity earlier, and improve coordination between security and IT teams. This approach can be particularly valuable in environments where security staffing, tooling integration, or process maturity may be limited, potentially helping organizations improve resilience and operational consistency without significant internal expansion. Deepwatch commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying MDR.3 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of MDR on their organizations. To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed five decision-makers from four organizations with experience using MDR. For the purposes of this study, Forrester aggregated the experiences of the interviewees and combined the results into a single composite organization, which is a North America-based enterprise with $2 billion in annual revenue, 5,000 employees, and a lean security operations (SecOps) team operating across a fragmented security and IT tooling environment. Interviewees said that, prior to adopting Deepwatch MDR, their organizations relied on largely manual investigation processes; inconsistent visibility across endpoint, identity, and cloud environments; and reactive incident handling. Efforts to improve detection and response — whether through internal staffing or legacy tools — yielded limited progress due to alert overload, coverage gaps, and resource constraints. These limitations contributed to delayed identification of issues, repetitive manual effort, and difficulty maintaining a consistent security posture. After adopting Deepwatch MDR, interviewees described a more proactive and predictable SecOps model supported by continuous monitoring, expert‑validated detections, and integrated escalation workflows. Reported outcomes included earlier identification of suspicious activity, reduced alert noise and false positives, improved coordination between security and IT teams, and fewer security‑related disruptions affecting employee productivity and day‑to‑day operations. Interviewees also noted that Deepwatch MDR enhanced the clarity and usefulness of activity flowing through their SIEM environments by improving dashboards, refining detections, and helping reduce alert noise. Key FindingsQuantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
The financial analysis that is based on the interviews found that a composite organization experiences benefits of $2.0 million over three years versus costs of $691,000, adding up to a net present value (NPV) of $1.3 million and an ROI of 187%. Increased operational efficiency of SecOps team $775KKey Statistics187%Return on investment (ROI) $2.0MBenefits PV $1.3MNet present value (NPV) Benefits (Three-Year)[CHART DIV CONTAINER]
The Deepwatch MDR Customer JourneyDrivers leading to the Deepwatch MDR investmentInterviews
Key ChallengesSecurity teams faced common operational and risk‑related challenges before implementing Deepwatch MDR. These pain points reflected the limitations of existing approaches — from manual alert handling and fragmented workflows, to under‑resourced internal SOCs, to legacy solutions that failed to provide clarity or meaningful threat reduction. Interviewees described challenges, including:
Composite OrganizationBased on the interviews, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the interviewees’ organizations, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Prior to adopting Deepwatch MDR, the composite organization operated in a fragmented security environment with multiple security and IT tools generating large volumes of alerts and limited contextual integration. This contributed to reactive workflows, inconsistent prioritization, and frequent handoffs between security and IT teams, increasing operational friction and exposure to user‑impacting issues.
KEY ASSUMPTIONS
Analysis Of BenefitsQuantified benefit data as applied to the compositeTotal Benefits
Strengthened SecurityEvidence and data. After implementing Deepwatch MDR, interviewees reported stronger detection accuracy, faster incident escalation, and improved visibility across hybrid environments. Deepwatch’s 24/7 monitoring and analyst‑driven triage helped their organizations reduce noise and surface high‑fidelity alerts, enabling teams to shift from reactive incident response to more proactive threat management. Interviewees also highlighted clearer guidance, more consistent prioritization, and improved readiness to support vulnerability management workflows. They said Deepwatch’s ongoing enhancements, including AI‑driven context and insight capabilities, further reinforced its focus on accelerating analysis and strengthening security outcomes over time.
Modeling and assumptions. Based on the interviews and Forrester Research, Forrester assumes the following about the composite organization:
Risks. The amount of this benefit can vary across organizations due to differences in:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $1.2 million. Strengthened Security
Increased Operational Efficiency Of SecOps TeamEvidence and data. By automating alert triage, reducing false positives, and accelerating detection and response, Deepwatch MDR improved the operational efficiency of the interviewees’ organizations’ SecOps teams. Interviewees reported that analysts spent less time chasing alert noise and more time on higher-value activities, such as proactive threat hunting, security engineering, and strategic initiatives. Deepwatch’s continuous monitoring, analyst‑validated detections, and structured escalation workflows operated on top of the interviewees’ organizations’ existing security tooling, reducing manual workload and improving alert quality and day-to-day investigation efficiency. These capabilities eliminated time previously spent sorting through low-confidence alerts and enabled the interviewees’ teams to operate with greater consistency and focus. Several interviewees also described increased operational maturity and upskilling through recurring collaboration with Deepwatch, who provided context, guidance, and tailored insights during regular touchpoints. In addition, continued platform enhancements — including AI‑driven context enrichment, agent‑assisted detection, and ticket analysis within its NEXA ecosystem — further strengthened visibility and decision‑making while easing operational burden over time.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The amount of this benefit can vary across organizations due to differences in:
Results. To account for these risks, Forrester adjusted this benefit downward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $775,000. Increased Operational Efficiency Of SecOps Team
Employee Productivity Gains From Reduced Security-Related Incidents And Remediation ActivitiesEvidence and data. Interviewees described how Deepwatch MDR reduced the frequency and severity of employee‑facing security disruptions, including compromised accounts, phishing attempts, malware‑related slowdowns, and other issues that previously interrupted daily work. By identifying threats earlier and escalating them through automated workflows, Deepwatch helped prevent user-impacting issues and reduced time employees spent noticing problems, troubleshooting, submitting tickets, or waiting for IT to remediate them. Integrations with IT service management tools further minimized manual handoffs at the interviewees’ organizations, accelerating ticket resolution and reducing the back‑and‑forth that often delayed employees from returning to full productivity. The interviewees’ organizations benefited from more consistent detection of user‑impacting issues, helping staff stay focused on their work with fewer interruptions.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. The amount of this benefit can vary across organizations due to differences in:
Results. To account for these risks, Forrester adjusted this benefit downward by 10%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $56,000. Employee Productivity Gains From Reduced Security-Related Incidents And Remediation Activities
Unquantified BenefitsInterviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
FlexibilityThe value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement MDR and later realize additional uses and business opportunities, including:
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Total Economic Impact Approach). Analysis Of CostsQuantified cost data as applied to the compositeTotal Costs
Deepwatch MDR FeesEvidence and data. Interviewees provided cost information regarding fees paid for Deepwatch MDR, which Forrester corroborated with Deepwatch. Actual costs will vary based on the service scope, coverage, and customer-specific requirements. Contact Deepwatch for additional details. Modeling and assumptions. Based on the interviews, Forrester assumes that Deepwatch MDR annual fees for the composite organization are $200,000. Risks. This cost can vary across organizations due to differences in the negotiated pricing and licensing structure. Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $522,000. Deepwatch MDR Fees
Implementation And Optimization Of Deepwatch MDREvidence and data. Interviewees described completing a limited amount of internal effort to support the implementation and ongoing optimization of Deepwatch MDR, which SecOps personnel largely absorbed.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. This cost can vary across organizations due to differences in:
Results. To account for these risks, Forrester adjusted this cost upward by 5%, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $169,000. Implementation And Optimization Of Deepwatch MDR
Financial SummaryConsolidated Three-Year, Risk-Adjusted MetricsCash Flow Chart (Risk-Adjusted)[CHART DIV CONTAINER]
Total costs
Total benefits
Cumulative net benefits
Initial
Year 1
Year 2
Year 3
Cash Flow Analysis (Risk-Adjusted)
Please NoteThe financial results calculated in the Benefits and Costs sections can be used to determine the ROI, NPV, and payback period for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis. These risk-adjusted ROI, NPV, and payback period values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section. The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur. From the information provided in the interviews, Forrester constructed a Total Economic Impact™ framework for those organizations considering an investment in MDR. The objective of the framework is to identify the cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the impact that MDR can have on an organization. Due DiligenceInterviewed Deepwatch stakeholders and Forrester analysts to gather data relative to MDR. InterviewsInterviewed five decision-makers at organizations using MDR to obtain data about costs, benefits, and risks. Composite OrganizationDesigned a composite organization based on characteristics of the interviewees’ organizations. Financial Model FrameworkConstructed a financial model representative of the interviews using the TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees. Case StudyEmployed four fundamental elements of TEI in modeling the investment impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology. Total Economic Impact ApproachBenefitsBenefits represent the value the solution delivers to the business. The TEI methodology places equal weight on the measure of benefits and costs, allowing for a full examination of the solution’s effect on the entire organization. CostsCosts comprise all expenses necessary to deliver the proposed value, or benefits, of the solution. The methodology captures implementation and ongoing costs associated with the solution. FlexibilityFlexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. The ability to capture that benefit has a PV that can be estimated. RisksRisks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.” Financial TerminologyPresent value (PV)The present or current value of (discounted) cost and benefit estimates given at an interest rate (the discount rate). The PVs of costs and benefits feed into the total NPV of cash flows. Net present value (NPV)The present or current value of (discounted) future net cash flows given an interest rate (the discount rate). A positive project NPV normally indicates that the investment should be made unless other projects have higher NPVs. Return on investment (ROI)A project’s expected return in percentage terms. ROI is calculated by dividing net benefits (benefits less costs) by costs. Discount rateThe interest rate used in cash flow analysis to take into account the time value of money. Organizations typically use discount rates between 8% and 16%. PaybackThe breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs) equal initial investment or cost. Appendix ATotal Economic ImpactTotal Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders. Appendix bEndnotes1 Source: The Managed Detection And Response Services Landscape, Q3 2024, Forrester Research, Inc., September 20, 2024. 2 Source: Global Cybersecurity Market Forecast, 2024 To 2029, Forrester Research, Inc., September 9, 2025. 3 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists solution providers in communicating their value proposition to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of business and technology initiatives to both senior management and other key stakeholders. 4 Cumulative breach costs are computed using the composite organization’s size (revenue or number of employees) as an input to a regression analysis of reported total cumulative costs for all breaches for organizations that experienced at least one breach in the past 12 months. Source: Forrester’s Security Survey, 2025, “Using your best estimate, what was the total cumulative cost of all breaches experienced by your organization in the past 12 months?” Base: 1,740 global security decision-makers who have experienced a breach in the past 12 months. The cumulative breach cost is then multiplied by a 67% likelihood for organizations to experience one or more breaches in a given year. Source: Forrester’s Security Survey, 2025, “How many times do you estimate that your organization’s sensitive data was potentially compromised or breached in the past 12 months?” Base: 2,643 global security decision-makers 5 Percentage of breaches by primary attack vector for breaches, as reported by security decision-makers whose organizations experienced at least one breach in the last 12 months. Source: Forrester’s Security Survey, 2025, “Of the times that your organization’s sensitive data was potentially compromised or breached in the past 12 months, please indicate how many of each fall into the categories below.” Base: 1,766 global security decision-makers who have experienced a breach in the past 12 months. DisclosuresReaders should be aware of the following: This study is commissioned by Deepwatch and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis. Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in MDR. Deepwatch reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study. Deepwatch provided the customer names for the interviews but did not participate in the interviews. Consulting Team:Kris Peterson PublishedFebruary 2026 |
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The Total Economic Impact™ Of Deepwatch MDR
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