Key takeaway
The case highlights how endpoint volume, service costs and customer revenue shape an MSP’s managed security offering.
Environment
The MSP wanted to offer security services, but its owner said the company lacked the expertise, platform and resources to build a SOC.
Challenge
The previous model combined separate endpoint and SOC vendors. In the interview, the owner identifies cost, margins, extending services to customers and operational workload as key concerns.
Approach
In the January 2023 interview, the founder reported offering Xcitium MDR across 9,000 endpoints. He quoted a monthly provider cost of $3.25 and average customer revenue of about $20 per endpoint.
Outcome
Xcitium’s illustrative valuation model assumes about $15 profit per endpoint per month: roughly $135,000 a month and $1.6 million a year. Applying a 7× EBITDA multiple, Xcitium presents an illustrative company valuation of about $11.3 million.
| Basis | Measure | Historical figure or assumption |
|---|---|---|
| Founder’s account | Endpoint count | 9,000 |
| Founder’s account | Monthly provider cost per endpoint | $3.25 |
| Founder’s account | Average monthly customer revenue per endpoint | About $20 |
| Xcitium model | Assumed monthly profit per endpoint | About $15 |
| Xcitium model | Assumed monthly profit | About $135,000 |
| Xcitium model | Assumed annual profit | About $1.6 million |
| Xcitium model | EBITDA multiple | 7× |
| Xcitium model | Illustrative company valuation | About $11.3 million |