Why SMBs Need EDR: A Closer Look at the Cybersecurity Gap

Small and midsized businesses (SMBS) may not have the resources of large enterprises, but they face the same cyberthreats with far more devastating consequences. Limited budgets, lean IT teams and outdated security tools make them more appealing targets for cybercriminals.

That vulnerability is only growing as threats become more advanced. Traditional antivirus (AV) and anti-malware (AM) tools were once the gold standard, but they’re no longer enough, especially with AI-driven attacks on the rise. While endpoint detection and response (EDR) solutions have emerged as a vital line of defense, many SMBs still struggle to adopt them, mainly because most tools are too complex and costly to manage.

So, where does this leave SMBs? That’s where managed service providers (MSPs) and purpose-built solutions, like those made by Datto, come into play. In fact, according to the Kaseya 2025 Global MSP Benchmark report, 64% of MSPs said all or most of their clients have asked for cybersecurity support. This underscores how MSPs have become the go-to partners in this space — although they still need the right tools to succeed.

Why antivirus alone isn’t cutting it

While traditional AV/AM solutions focus on blocking known malware, it still isn’t sufficient. Sophisticated attacks often blend in and slip past AV filters by mimicking normal system activity or trusted programs, making it harder for basic AV tools to detect and stop them.

EDR, on the other hand, is different. It monitors endpoint activity in real-time, detects suspicious behavior and gives IT teams the exact steps needed to stop an attack before it spreads. For SMBs that don’t have the staff to sift through countless alerts, EDR acts as a force multiplier, helping small teams handle larger threats and scale protection even as the number of endpoints grows. As Figure 1 demonstrates, the amount of support needed scales almost exponentially as the number of endpoints grows. Clearly, a better approach is necessary.

Why enterprise EDR isn’t built for SMBs

It’s easy to think that what works for a large enterprise will work for a smaller business. But that’s not how cybersecurity works. Many of the EDR tools available today aren’t practical for SMBs or the MSPs who serve them. Why? Because they are:

• Too expensive: Budget constraints make high-end solutions unattainable.
• Too complex: Managing these systems requires skills that most SMBs simply don’t have.
• Hard to scale: As SMBs grow, their IT needs evolve. Many tools can’t grow with them.
• Poorly integrated: Most tools don’t play well with existing systems.
• Resource-heavy: Even MSPs can struggle to implement and manage enterprise-grade EDR solutions across multiple clients.

Let’s not forget the education gap. Many SMBs are still unaware of EDR or why it’s critical to their survival. That makes the MSP’s job even harder—they not only have to sell and install the solution but also educate their clients along the way.

AI is raising the stakes

Artificial intelligence isn’t just helping defenders, it’s empowering attackers too. AI-powered phishing campaigns that are both convincing and scalable are one of the fastest-growing threats out there. These attacks can slip past traditional filters and trick even savvy users into clicking the wrong link.

For large enterprises, that’s a serious issue, but for SMBs, it’s a potential disaster. That’s why SMBs are increasingly turning to MSPs for help. IDC research shows that:

• 43% of SMBs use MSPs as their primary source of cybersecurity support
• 26% rely on EDR product vendors
• 15% rely on a specialized managed detection and response (MDR) provider
• 10% work with managed security service providers (MSSPs)
• 6% depend on a value-added reseller (VAR)

MSPs are the new front line

The burden of cybersecurity is shifting. MSPs are now expected to deliver enterprise-grade protection at SMB-friendly prices, and that includes EDR. But they can’t do it alone. They need platforms that are built with SMBs in mind: easy to use, simple to deploy and scalable across multiple clients.

While the responsibility is growing, so is the opportunity. Data from the Kaseya 2025 Global MSP Benchmark report shows that MSPs with net profit margins of 15% or higher rank enhanced security services among their top three revenue drivers. In contrast, those with lower margins did not. This makes one thing clear — cybersecurity isn’t just a service MSPs are expected to provide. It’s a growth engine and a path to higher profitability.

Purpose-built tools that help MSPs deliver

Kaseya has developed a portfolio of tightly integrated tools designed to meet the unique needs of MSPs working with SMBs. These include:

• Security solutions like EDR, antivirus and managed detection and response / managed SOC
• File backup and continuity tools to support disaster recovery
• Networking tools for secure, reliable connectivity
• Business management solutions to streamline MSP operations

Everything is designed to work together, which simplifies deployment and management for MSPs while reducing friction for end users.

Why Datto EDR is a strong play

One solution in Kaseya’s cybersecurity portfolio that deserves a spotlight is Datto EDR. Purpose-built for MSPs, Datto EDR delivers enterprise-grade threat detection and response in a package designed for simplicity and scalability. Here’s what sets Datto EDR apart:

• Outstanding malware detection: In independent testing by Miercom, Datto EDR, when combined with Datto AV, detected and stopped 99.62% of all malware threats.
• Minimal noise, maximum actionability: Unlike traditional tools that overwhelm you with alerts, Datto EDR gives clear insights and next steps.
• MSP-ready architecture: With centralized management, easy deployment and powerful automation, Datto EDR makes it simple for MSPs to protect hundreds of endpoints efficiently.
• Affordable and accessible: It’s designed to be both cost-effective and easy to manage, ideal for SMBs who can’t afford complexity or delays.

With a purpose-built EDR, you can deliver stronger protection, faster response and better outcomes for every client you support. Reimagine endpoint security with Datto EDR. Take a demo today.

This blog is based on the IDC Spotlight Report “Plugging the Antivirus Gap for Small and Medium-Sized Businesses: Endpoint Detection and Response for Everyone,” sponsored by Kaseya.