CloudNation - Inspiration

Optimizing cloud security costs in Azure

Written by Erik Snijder | Apr 14, 2025 1:25:28 PM

Security in the cloud is essential—but it often comes at a high price. Striking the right balance between robust protection and budget constraints is a challenge for many organizations. Microsoft Defender for Cloud and Microsoft Sentinel offer powerful capabilities, but they require strategic cost management to avoid overspending. This blog explores practical strategies to optimize costs while maintaining a strong security posture in Azure.

 

Defender for cloud

Microsoft Defender for Cloud is a cloud-native application protection platform (CNAPP) designed to safeguard cloud-based applications from a wide range of cyber threats and vulnerabilities. It combines the capabilities of:

  • A DevSecOps solution that unifies security management at the code level across multicloud and multi-pipeline environments
  • A Cloud Security Posture Management (CSPM) solution that highlights actionable insights to prevent security breaches
  • A Cloud Workload Protection Platform (CWPP) offering tailored protections for servers, containers, storage, databases, and other workloads

 

Optimizing Cloud workload protection plans 

Use Defender for CSPM to monitor and improve security configurations across all cloud resources. It provides detailed visibility into your assets and workloads, along with actionable hardening guidance to enhance your overall security posture.

Enable Workload Protection Plans only for critical assets—your "crown jewels"—such as production environments, sensitive databases, and high-value applications. Ensure that non-production environments are fully segregated and free of production data. Periodically review your workload protection settings to adjust coverage as needed and avoid unnecessary costs.

 

Pre-purchase plans 

Azure offers Defender for Cloud pre-purchase plans that can reduce costs by up to 20%. These plans function as pools of prepaid Defender for Cloud commit units. Usage across different workloads draws from this pool, offering flexibility and savings for organizations with reasonably predictable usage patterns.

 

Log Analytics workspaces and Sentinel

Microsoft Sentinel and Log Analytics offer robust monitoring and detection capabilities, but high log ingestion volumes can quickly drive up costs. To mitigate this, Azure provides Commitment Tiers and Pre-Purchase Plans, which offer discounts for predictable ingestion volumes.

 

Optimize ingestion costs with commitment tiers and pre-purchase plans

To improve cost efficiency, take advantage of Log Analytics Commitment Tiers by pre-purchasing a fixed daily ingestion amount at a discounted rate. Similarly, Microsoft Sentinel offers Commitment Tiers with cost benefits tied to data ingestion commitments.

The Simplified Pricing Model allows you to align Log Analytics and Sentinel costs for better budgeting and management. Regularly monitor your ingestion patterns and adjust tiers to avoid overcommitting. For additional savings, consider a pre-purchase plan that locks in lower rates by committing to a defined volume for a full year.

 

Data categorization for cost control

Log Analytics workspaces consist of tables that determine your data model, access controls, and storage costs. Microsoft recommends categorizing data ingested into Sentinel into two primary types:

  • Primary security data: Essential for real-time monitoring, scheduled alerts, and proactive threat detection. This data should be continuously accessible across all Sentinel experiences.
  • Secondary security data: High-volume or verbose logs that provide context during investigations but are not needed in real time. These can be accessed on-demand in a cost-efficient manner.

Use the Analytics table plan for primary data to ensure high performance and fast access. For secondary data, opt for the Auxiliary table plan, which offers lower-cost storage while maintaining limited accessibility.

 

Managing costs with insights and efficient storage

Azure Log Analytics includes the Insights Workbook, a built-in dashboard for monitoring workspace usage and identifying anomalies. Use it to track data ingestion trends, pinpoint excessive usage, and refine your data collection strategies. Setting up alerts for unexpected data spikes and adjusting commitment tiers accordingly will help you avoid waste and stay within budget.

For organizations ingesting over 100 GB/day, consolidating workspaces into a Log Analytics Dedicated Cluster can unlock lower pricing tiers and lead to significant savings.

 

Data ingestion optimization

The biggest driver of Azure Monitor costs is data volume. To manage expenses, collect only the data necessary to monitor the health and performance of your services and applications. Consider the trade-off between sampling frequency and cost: higher sample rates offer quicker detection but at a higher price, while lower rates reduce costs but may delay detection.

Given the complexity of most environments—with multiple data sources and collection methods—it’s essential to align your monitoring strategy with your financial goals.

 

Azure Data Explorer for long-term log retention

When long-term storage of security logs is required for compliance or forensics, Azure Data Explorer (ADX) offers a more economical solution than Log Analytics. By archiving logs in ADX, organizations can retain large datasets over extended periods without incurring excessive costs. ADX also enables advanced analytics on historical trends with optimized queries, delivering insights without the high price tag.

 

Conclusion

Optimizing cloud security costs in Azure means balancing strong security with financial discipline. By leveraging tools like Microsoft Defender for Cloud and Microsoft Sentinel—alongside smart practices like commitment tiers, pre-purchase plans, data categorization, and efficient storage—you can protect your organization while managing expenses effectively.

Cost optimization is complex, but essential. CloudNation supports organizations in maximizing the value of their Azure investments by identifying savings opportunities and implementing tailored, cost-effective security strategies.