The ability to detect, collect, investigate and respond is the heart of every cybersecurity strategy, organizations are constantly seeking robust and cost-effective solutions to protect their digital assets. As a leading cloud-native SIEM platform, Microsoft Sentinel has become a popular choice for businesses of all sizes. Like any other enterprise-level solution, understanding the costs, licensing, and pricing models associated with Microsoft Sentinel can significantly impact security budgets and long-term planning, for organizations looking to adopt or expand their cybersecurity capabilities.
The Cost of Microsoft Sentinel
Microsoft Sentinel, being a cloud-based service, has varying pricing and cost structures compared to traditional on-premises security solutions. The cost is primarily based on the volume of data ingested and the number of users or analysts accessing the platform. Let us dive in!
Data Ingestion Costs
The primary cost driver for Microsoft Sentinel is the amount of data ingested into the platform. This includes log data from various sources, such as Windows Event Logs, Azure services, and third-party integrations. The cost per gigabyte (GB) of data ingested varies depending on the data type and the region where the data is stored.
For instance, in the United States, the cost of data ingestion is $2.40 per GB for the first 5 GB per day, and $0.80 per GB for any additional data. These rates may be subject to change, so it's essential to stay up-to-date on the latest pricing information from Microsoft.
Connector Costs
Harboring a robust partner ecosystem, Sentinel allows seamless log ingestion from a variety of platforms through readily available, free data connectors. However, some specialized connectors for select third-party platforms might incur costs, which add to the Sentinel’s operational bills over time. It’s important hence to perform a complete assessment of all landscapes, platforms, assets to be synced with the Sentinel core before onboarding, and any log ingestion pricing that might come with it.
EPS-Based Sizing and Log Management Costs
Microsoft Sentinel introduced Events per Second (EPS) based sizing, allowing customers to better align their pricing with actual usage patterns. This metric is crucial for organizations to ensure that their deployment can handle peak activity periods effectively. This approach also lets users limit the size of logs being ingested, providing greater control over data management and associated costs.
Microsoft Sentinel Licensing and Pricing Models
Microsoft Sentinel offers several licensing and pricing models to cater to the diverse needs of organizations. Understanding these models can help you choose the most suitable option for your business.
Pay-as-you-go (PAYG)
The pay-as-you-go model is the most flexible option. Under this, organizations are charged based on the actual usage of the platform, including data ingestion and user licenses. This model is ideal for organizations with varying or unpredictable security data volumes and user requirements.
Capacity Commitment
The capacity commitment model allows organizations to pre-purchase a specific amount of data ingestion at a discounted rate. This model is suitable for organizations with predictable security data volumes and user requirements, as it offers cost savings compared to the pay-as-you-go model.
Microsoft offers volume-based discounts for Sentinel. For customers ingesting more than 100 GB per day, there is typically a reduced per-GB price. The exact pricing tiers and discounts can vary, but generally, the per-GB cost decreases as the volume increases beyond 100 GB. Organizations can choose the tier that best suits their needs and receive a discounted rate on the data ingestion and user licenses.
| Tier | Microsoft Sentinel Price | Effective Per GB Price | Savings Over Pay-As-You-Go |
| Pay-As-You-Go | $5.22 per GB | $5.22 per GB | N/A |
| 100 GB per day | $342.52 per day | $3.43 per GB | 34% |
| 200 GB per day | $633.56 per day | $3.17 per GB | 39% |
| 300 GB per day | $924.60 per day | $3.09 per GB | 41% |
| 400 GB per day | $1,198.48 per day | $3.00 per GB | 43% |
| 500 GB per day | $1,460.80 per day | $2.93 per GB | 44% |
| 1,000 GB per day | $2,863.40 per day | $2.87 per GB | 45% |
| 2,000 GB per day | $5,538.80 per day | $2.77 per GB | 47% |
| 5,000 GB per day | $13,321 per day | $2.67 per GB | 49% |
| 10,000 GB per day | $25,576 per day | $2.56 per GB | 51% |
| 25,000 GB per day | $61,467.50 per day | $2.46 per GB | 53% |
| 50,000 GB per day | $117,990 per day | $2.36 per GB | 55% |
Source: azure.microsoft.com
Hybrid Model
The hybrid model combines the pay-as-you-go and capacity commitment models. Under this model, organizations can pre-purchase a certain amount of data ingestion at a discounted rate, and then pay the standard pay-as-you-go rate for any additional usage. This model is beneficial for organizations that have a relatively consistent security data volume and user requirements, but also need the flexibility to accommodate occasional spikes in usage.
Storage Retention and Free Tiers
Microsoft Sentinel offers flexible storage retention options, including free tiers that allow organizations to store a certain amount of data without incurring costs. There is a 31-day free trial with up to 10GB/day log data ingestion for new workspaces, waiving both Log Analytics and Sentinel charges during this period. This is particularly beneficial for smaller organizations or those just starting with Sentinel, as they can manage their security data without immediate financial pressure.
Microsoft Sentinel when activated on an Azure Monitor Log Analytics workspace, is subject to the following retention policies at no additional charge:
- Analytics Logs: 90 days
- Basic Logs and Auxiliary Logs: 8 days
Extended retention beyond these periods is available:
- Analytics Logs can be retained for up to 2 years at standard Azure Monitor retention rates.
- All log types can be stored for up to 12 years for compliance and investigation purposes.
Long-term retained data can be accessed through:
- Asynchronous search jobs (incurs a cost based on data scanned)
- Restoration for full interactive analytics querying
Factors to Consider When Estimating Microsoft Sentinel Costs
When estimating the Microsoft Sentinel costs, organizations should consider several factors:
1) Data Ingestion Volume: Accurately estimating the volume of security data that will be ingested into Microsoft Sentinel is crucial for budgeting and cost management.
2) User Requirements: Determine the number of read-only and read-write users who will access the platform, as this directly impacts the user license costs.
3) Retention Period: The length of time that organizations want to retain their security data can also affect the overall costs, as longer retention periods require more storage.
4) Additional Features and Services: Microsoft Sentinel offers various additional features and services, such as threat hunting, incident response, and threat intelligence, which may incur additional costs.
5) Potential Discounts: Organizations should explore any available discounts or volume-based pricing options offered by providers that may be applicable to their specific use case.
Microsoft Sentinel Pricing and Optimization Strategies
To optimize the costs of Microsoft Sentinel, organizations can consider the following strategies:
Implement Data Lifecycle Management: Carefully manage the data lifecycle by setting appropriate retention policies and archiving or deleting data that is no longer needed.
Leverage Capacity Commitment: If the data volumes and user requirements are relatively predictable, consider the capacity commitment model to take advantage of discounted rates.
Streamline User Access: Regularly review and adjust the number of users with read-write access to ensure that only the necessary personnel have full access to the platform.
Utilize Azure Hybrid Benefit: If your organization is already using other Microsoft Azure services, you may be eligible for the Azure Hybrid Benefit, which can provide discounts on Microsoft Sentinel. For instance:
- Data ingested from Microsoft 365 solutions is considered part of the free tier, allowing organizations using these services to leverage Sentinel without additional costs for this data.
- Or for organizations already using Microsoft Defender for Endpoint Plan 2 (Defender P2), they are entitled to 500 MB of free data ingestion daily into Microsoft Sentinel.
Explore Microsoft Sentinel Managed Services: An MSP can help optimize costs, ensure proper configuration, and provide ongoing support. Organizations can consider partnering with a managed service provider (MSP) like Cloud4C that specializes in Microsoft Sentinel implementation and management.
Cloud4C: Your Partner for Microsoft Sentinel Success
In an age where cyber threats loom large and data breaches have become all too common, implementing robust authentication measures is no longer optional – it's a necessity. With organizations constantly trying to navigate the complexities of cybersecurity and seeking to implement robust solutions like Microsoft Sentinel, it's crucial to have a trusted partner who can guide you through the process.
As a leading global cloud managed services provider, Cloud4C offers a comprehensive suite of services to help organizations optimize their Microsoft Sentinel deployments. Our team of experienced cybersecurity experts assess security needs, develop a tailored implementation plan, optimize costs and licensing and provide ongoing management, monitoring, and support. From threat hunting and anomaly detection to automated response and compliance management, we offer end-to-end security solutions.
Don't leave your organization's security to chance. Contact us to learn more.
