Fractional CISO vs Managed Security Service Provider: What's the Real Difference?

TL;DR

A fractional CISO is responsible for some strategic security leadership roles such as policy development, risk management, and compliance assurance. On the other hand, Managed Security Service Providers (MSSPs) offer day-to-day security operations including monitoring of traffic, identification of intruders and response to such incidents. Depending on how advanced their security is, what amount of money they have available, as well as if they don’t know where to go or can’t implement anything alone, most companies will require one or both services. The fractional CISO is in charge of determining the necessary protection measures and their reasons, whereas the execution of these measures on a continuous basis is done by the MSSP.

Key Takeaways

• The cost of fractional CISOs is around half that of full-time executives who may cost up to approximately $60k to $180k versus $200k–$400k+ for full-time roles.
• Managed Security Services Providers (MSSPs) that have SOCs which operate 24/7 can be said to leverage automation and monitoring for fighting against alert fatigue, with some cases reporting higher than 95% reductions.
• A full-time CISO is paid between $248k to $457k depending on experience, location and company size.
• The percentage of SMBs that have experienced cyber attacks in the past few years is estimated at 60-72%, which has increased the demand for security solutions.
• While some organizations hire fractional CISOs for setting strategies and let MSSPs implement security measures on daily basis, most of them do otherwise.
• Fractional CISOs are responsible for aligning security with business goals and compliance while MSSPs deal only with technical execution.

Introduction

The security setup at a medium-sized healthcare company was discovered to be woefully inadequate when someone attacked them with ransomware last month. Although they had all the latest protective software – firewalls, antivirus programs, systems that are supposed to detect intruders – it turned out nobody knew whose job it was to respond.

This is not unusual. Many businesses are beginning to realise that they don't understand the basics of keeping data safe online: let alone how leadership in this area differs from managing day-to-day operations. Two services have emerged to meet their needs. Unfortunately these terms sound so similar you could easily assume they offer the same thing – they do not.

In fact having one rather than the other could make big difference as to whether your company gets hacked or becomes a safe place for customers do business with (and for staff to work at).

As CISO salaries range from $386,000 to $585,000 per year and there are 3.4 million unfilled cybersecurity jobs worldwide, organizations are reconsidering how they organize their security management. It’s no longer a matter of whether you need security skills – but rather which ones best fit your needs.

What is a Fractional CISO?

A Fractional CISO is a seasoned cybersecurity executive who works with your organization on a part-time, contract basis. Think of them as your organization's strategic security brain without the full-time price tag or permanent commitment.

Core Responsibilities

Strategic Planning & Governance: They develop comprehensive security programs aligned with your business objectives. This includes creating multi-year security roadmaps, establishing governance frameworks, and ensuring security investments support growth rather than just checking compliance boxes.

Risk Management & Assessment: Fractional CISOs identify vulnerabilities through systematic risk assessments, create risk registers with business-contextualized priorities, and recommend mitigation strategies based on your threat landscape and industry requirements.

Compliance & Audit Preparation: They guide organizations through regulatory frameworks like SOC 2, HIPAA, ISO 27001, GDPR, and PCI DSS. This includes developing required policies, coordinating audit activities, and maintaining continuous compliance evidence.

Executive Communication & Board Reporting: They translate technical security concepts into business language for stakeholders. This means presenting risk in terms executives understand—financial impact, business continuity, and competitive positioning.

Vendor & Technology Selection: Fractional CISOs evaluate security tools objectively, eliminating redundant solutions and recommending technologies that integrate with your existing infrastructure without creating unnecessary complexity.

Engagement Models

Most Fractional CISOs work 8-40 hours per month depending on organizational needs. Pricing typically ranges from $5,000 to $20,000 monthly retainers or $200-$500 hourly rates. Organizations usually start with monthly retainers for consistent strategic oversight, scaling up during audits, incidents, or major technology transformations.

Who Benefits the Most?

Small to mid-sized companies with revenues between $5 million and $200 million are in need of leadership at the executive level for security but they can’t afford the hefty price tag of $300,000 or more annually.

Also benefiting from this service: Companies that must meet compliance standards and want oversight from its board on security measures; those going through transitions such as dealing with hacks, coping with fast growth or when key leaders leave. Even newly launched firms which find their basic cybersecurity needs are outgrowing them as they expand into providing enterprise levels of protection.

What is MSSP (Managed Security Service Provider)?

An MSSP is a third-party company that provides outsourced monitoring and management of security devices, systems, and infrastructure. They're your 24/7 security operations team, handling the continuous technical work that keeps threats at bay.

Core Services

Security Event Monitoring (24/7): MSSPs operate Security Operations Centers (SOCs) with analysts watching your environment around the clock. They monitor network traffic, endpoint activity, cloud environments, and application logs for suspicious patterns or known attack signatures.

Threat Detection & Response: They use advanced threat intelligence, behavioral analytics, and threat hunting techniques to identify both known and emerging threats. When attacks occur, MSSP analysts investigate, contain, and remediate incidents according to predefined playbooks.

Managed Firewall & Intrusion Detection: MSSPs configure, monitor, and maintain firewalls, intrusion prevention systems (IPS), and network security controls. They fine-tune rules based on your traffic patterns and adjust defenses as threats evolve.

Vulnerability Management: Continuous scanning identifies security weaknesses across your infrastructure. MSSPs prioritize vulnerabilities by business context and assist with patch management, providing reports on remediation progress.

Compliance Monitoring: MSSPs generate reports demonstrating regulatory adherence—tracking security controls, documenting incidents, and providing audit evidence for frameworks like HIPAA, PCI DSS, and SOC 2.

Managed Detection & Response (MDR): Premium MSSPs offer MDR services combining advanced tools with human expertise for proactive threat hunting, attacker intelligence, and rapid incident response tailored to your unique environment.

Delivery Model

MSSPs typically operate from dedicated SOCs with teams of security analysts, threat researchers, and incident responders. Services are delivered through remote monitoring with alert escalation to your internal teams when required. Pricing varies from basic monitoring ($2,000-$5,000/month for SMBs) to comprehensive MDR programs ($10,000-$50,000+/month for enterprises), depending on infrastructure complexity and service level agreements.

Who Benefits the Most?

Organizations without internal security teams that need professional monitoring and response capabilities. Companies drowning in security alerts experiencing alert fatigue with current tools. Businesses requiring 24/7 coverage that can't afford round-the-clock in-house SOC operations.

Regulated industries needing documented security monitoring for compliance. Organizations with complex hybrid environments—on-premises, cloud, and SaaS applications requiring integrated monitoring.

Side-by-Side Comparison: Difference between Fractional CISOs and MSSPs

Strategic vs. Operational

The main contrast lies in viewpoint. While a Fractional CISO works on the strategic level and asks questions like “what should be protected and for what reasons?” as well as “how is the security helping in achieving the business goals?” an MSSP deals with the tactical level and asks questions like “what’s going on around us?” and “how can we prevent this attack?”

Complementary, Not Competing

These two approaches are used by most companies. The first one helps in defining what is to be done to enhance the security of an organization, which includes tool selection and policy setting while the second one monitors the environment, implements control measures and provides information for decision making. According to studies, companies that employ the services of a combination of the two professionals at either end, i. e. using a CISO for strategy and an MSSP for execution, have 40% better security outcomes than those that use any of them alone.

The Vendor Relationship Factor

MSSPs sometimes offer "vCISO" services bundled with their operational offerings. However, this creates potential conflicts of interest—the same vendor defining your strategy and selling you solutions. Independent Fractional CISOs provide objective guidance, recommending best-fit technologies without sales pressure. They can evaluate whether your existing MSSP is performing effectively or if alternatives better serve your needs.

What are the Risks and Trade-offs?

Fractional CISO Limitations

Limited Availability: Part-time engagement means your Fractional CISO isn't available 24/7 for immediate decisions. During active incidents, they provide strategic guidance but aren't hands-on firefighters. Organizations must have internal teams or MSSP partners handling operational response.

Depth vs. Breadth: A Fractional CISO working across multiple clients may not know your environment as intimately as a full-time executive. Complex organizations with unique architectures may need more dedicated leadership. However, this is often offset by their exposure to diverse threat landscapes and best practices from multiple industries.

Authority Challenges: Without full-time presence, Fractional CISOs sometimes face organizational resistance. Internal stakeholders may question their authority or prioritize other leaders' requests. Strong executive sponsorship is essential for effectiveness.

Context Switching: Costs Fractional CISOs balance multiple clients, potentially delaying responses to non-urgent requests. Clear communication expectations and escalation paths prevent frustration.

MSSP Limitations

Generic Approach Risk: Some MSSPs apply standardized playbooks across all clients regardless of business context. This creates false positives, alert fatigue, and missed threats specific to your industry. Premium MSSPs tailor their services, but expect to pay significantly more.

Integration Complexity: MSSPs require access to your infrastructure, logs, and systems. Integration can be complex, particularly in hybrid environments with on-premises and cloud assets. Poor integration leads to monitoring blind spots.

Communication Gaps: MSSP analysts may lack business context for prioritizing alerts. What seems like a critical security event to them might be routine maintenance to your team. Without clear communication channels, this mismatch wastes resources.

Hidden Costs Base: MSSP pricing often excludes incident response, forensic investigation, or advanced threat hunting. Organizations discover these services cost extra only after an incident occurs. Review contracts carefully for scope limitations.

Vendor Lock-in Switching: MSSPs after extensive integration is disruptive and expensive. Organizations become dependent on specific tools and processes, making transition difficult if service quality declines.

The Hybrid Risk: Gaps Between Roles

The most dangerous scenario is assuming one solution covers both needs. Organizations that hire MSSPs without strategic leadership often accumulate disconnected tools, overlapping capabilities, and unclear priorities. Those that hire Fractional CISOs without operational execution lack the monitoring and response capabilities to detect attacks. Both pieces are essential—strategy without execution is theoretical; execution without strategy is reactive chaos.

Making Trade-offs Work

For Fractional CISOs: Establish clear escalation protocols for urgent matters. Define success metrics aligned with business objectives, not just security metrics. Schedule regular touchpoints with executive sponsors to maintain organizational influence.

For MSSPs: Require detailed service level agreements (SLAs) specifying response times, escalation procedures, and reporting frequency. Insist on regular business reviews where MSSP teams explain trends, emerging threats, and recommended improvements. Test incident response procedures quarterly to ensure readiness.

For Both: Document responsibilities explicitly—who owns what decisions, who responds to which alerts, and how they coordinate during incidents. This clarity prevents gaps and overlapping work.

FAQs

Conclusion

It is not a question of whether Fractional CISOs or MSSPs are “better” but rather what they offer for your security posture. Without operational execution, strategic leadership makes one susceptible while strategic leadership that leaves you vulnerable; operational execution without strategic direction wastes resources on wrong priorities.

Firstly, identify your gaps. In case you are unable to explain clearly your security strategy, compliance requirements or risk priorities then you should consider using fractional leadership. When you can’t determine what’s going on around you at this very moment — who is currently trying to access some information; are there any hazards and how should one react if he/she knows about them? — then you need to begin with operational monitoring.

Security does not revolve around purchasing many tools or having large staff. It is all about using professionals where they are most needed. This is possible through these adaptable models.