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The Margin is in the Identity: Why MSSPs Must Evolve Beyond Legacy MFA

by SOFTwarfare Staff
Jan 5, 2026 9:59:23 AM

Your clients aren’t paying for a "security stack." They are paying for the confidence that a single compromised credential won’t turn into a headline-making breach.

For years, the Managed Security Service Provider (MSSP) model was built on the network perimeter. We sold firewalls, managed EDRs, and monitored SIEMs. But in a world where 80% of breaches involve compromised credentials, the traditional "defense-in-depth" model has a glaring hole: Identity.

In a landscape defined by cloud-native apps and AI-driven phishing, the perimeter hasn’t just shifted; it has vanished. Attackers no longer break in; they log in. To remain competitive, elite providers are moving away from network-centric monitoring and positioning Identity as the primary control plane.

Eliminating the "Notification Cannon"

The biggest threat to an MSSP’s profit margin isn't a hacker—it’s alert fatigue. When your SOC is drowning in disparate signals from legacy MFA and VPN logs, your cost per ticket skyrockets.

By adopting an Identity-First approach, MSSPs can consolidate these signals into a unified view. Instead of investigating five separate "low-severity" alerts, your analysts see one high-risk identity anomaly. This allows you to neutralize threats before they trigger a SOC ticket. Every manual ticket your team avoids is pure margin back in your pocket.

The Identity-First Comparison

Metric

Legacy MSSP Model

Identity-First MSSP Model

Primary Focus

Network Perimeter

Identity & Context

Response Time

Reactive (Minutes/Hours)

Instantaneous (Milliseconds)

Analyst Burden

High Alert Fatigue

High-Fidelity Intelligence

Profit Margin

Compressed by Tool Sprawl

Optimized by Efficiency

 

 

 

 

 

 

 

 

The Zero Trust "Glue"

Without identity, Zero Trust is just an expensive way to build a brittle network. For the MSSP, identity serves as the "glue" that connects the entire security ecosystem.

Leading with identity allows you to enforce policy not based on where a user is, but on who they are, the health of their device, and the risk of their current behavior. This isn't just better security; it's a more flexible, frictionless experience for your client’s workforce.

Accelerating Response: The Identity Advantage

In Incident Response (IR), the "Millisecond War" is won or lost based on how quickly you can isolate a compromised actor.

When identity is the central point of telemetry, remediation is instantaneous. Instead of hunting through logs to see where an attacker moved laterally, an identity-centric SOC can instantly revoke a session or step up authentication requirements. By making identity the enforcement point, you move from "detect and respond" to "predict and prevent."

The Strategic Shift

The era of the "low-cost" MSSP is over. Clients are looking for strategic partners who can defend their assets in a world of persistent threats.

MSSPs that lead with identity move from being a "cost center" to a high-margin strategic partner. You reduce operational overhead while providing a level of defensibility that legacy stacks cannot match. At SOFTwarfare, we believe the mission is clear: to defend the American enterprise, we must secure the identity.

Ready to reclaim your margins and secure the control plane?

Learn more about how SOFTwarfare empowers the Identity-First MSSP.