The TEI study highlights several concrete cost-saving and cost-avoidance areas when organizations move to Microsoft Defender and Sentinel.
1. Multicloud security and infrastructure savings
- Decommissioning legacy agents on physical appliances and retiring on-premises hardware and software licenses.
- Lower data ingestion and consumption costs compared to legacy SIEM setups.
- Reduced internal and external effort to manage, patch, and maintain multiple security products across hybrid and multicloud environments.
For the composite organization, these changes added up to about $12 million in multicloud security cost savings over three years.
2. SecOps efficiency and staffing leverage
- Fewer false positives and more actionable alerts mean less time spent on low-value triage.
- Shorter investigation and resolution times free analysts to focus on proactive threat hunting and strategic work.
These SecOps optimization benefits were quantified at $2.4 million over three years.
3. Lower SOC engineering and automation costs
- Improved automation capabilities allow teams to build time-saving workflows without specialized coding skills.
- Reduced dependence on external consultants for detection engineering.
This translated into about $513,000 in reduced operational overhead for SOC engineering.
4. Reduced breach impact and incident costs
- Consolidated visibility and better detection reduce the likelihood and impact of breaches.
- Enhanced automation and proactive threat hunting minimize dwell time and incident response costs.
The composite organization saw a 75% reduction in exposure to external breach costs, equating to roughly $2.8 million in avoided breach impact.
These benefits were achieved against three-year, risk-adjusted costs of about $5.1 million for licenses (including Defender for Cloud and E5 security for 10,000 FTEs, plus Sentinel ingestion of 1–2 TB/day) and around $129,000 for deployment, training, and ongoing management.