Licensing and cost

Sentinel Cost Planning

Use this page to separate the main Sentinel cost levers: ingestion commitment, table plans, retention, and Microsoft 365 data grants. Use the Azure pricing calculator for exact regional prices before estimating a deployment.

Commitment Strategy

Commitment tiers are a billing choice for the Analytics tier. The exact regional price and savings percentage should come from the Azure pricing page, but the operational rule is stable: pick the lowest tier that matches sustained daily ingestion, and remember that lowering a tier requires waiting through the commitment period.

ChoiceUse whenPlanning note
Pay as you goVariable or pilot workloadsNo daily commitment; data is billed by analyzed GB and optional retention beyond the included period.
100 GB/day commitmentPredictable production ingestion at or above 100 GB/dayMicrosoft Learn states commitment pricing starts at 100 GB/day; overage is billed at the effective rate for the selected tier.
200-500 GB/day commitmentsGrowing workspaces with stable daily volumeThe Azure pricing page publishes intermediate commitment tiers such as 200, 300, 400, and 500 GB/day; validate the current regional discount before quoting.
1,000-50,000 GB/day commitmentsLarge enterprise or multi-workspace estatesHigher tiers are listed on the Azure pricing page and can provide the largest savings versus pay-as-you-go.
Dedicated clusterLarge multi-workspace estatesCan aggregate eligible workspace ingestion, but cluster commitment and unused commitment still need explicit modeling.

Table Plan Decision

Pick the table plan by detection value first, then optimize verbose sources with Basic or Auxiliary when the documented query and feature limitations are acceptable.

Log table plan selection flow
flowchart TD
  A[New log source] --> B{Used for detections}
  B -->|Yes| C[Analytics table]
  B -->|No| D{Needs frequent investigation}
  D -->|Yes| E[Basic table]
  D -->|No| F[Auxiliary table]
  C --> G[Set interactive retention]
  E --> H[Check query limitations]
  F --> I[Use search jobs for rare investigations]
PlanUse forConstraint
AnalyticsSecurity detections, incidents, hunting, automation, and multi-table KQLQuery price is included. Sentinel workspaces include 90 days of analytics retention at no extra charge; total retention can extend up to 12 years.
BasicVerbose troubleshooting data that still needs lower-cost interactive accessReduced ingestion cost. Query price is not included; Basic/Auxiliary queries are charged by data scanned and are limited to one table plus supported lookup/union patterns.
AuxiliaryLow-touch audit/compliance data with infrequent searchesLowest ingestion tier for supported custom logs. Queries are unoptimized and charged by data scanned. Data export rules are not supported.
Search jobsHistorical or rare investigations over Basic, Auxiliary, or long-retained dataSupported across Analytics, Basic, and Auxiliary; use scoped time windows because scan volume drives cost.

Credits and No-Cost Sources

SourceCost leverPlanning note
Microsoft 365 E7, E5, A5, F5, G5Eligible Microsoft 365 data can receive an ingestion grantModel the grant separately from non-Microsoft 365 sources. Microsoft describes the benefit as up to 5 MB per licensed user per day for eligible Microsoft 365 data.
Free Sentinel data sourcesAzureActivity, SentinelHealth, OfficeActivity, SecurityIncident, and selected SecurityAlert records are listed as free data typesThe raw logs behind some Defender, Entra, and AIP sources can still be paid even when alerts/incidents are free.
Defender XDR dataSecurityIncident and SecurityAlert from Defender XDR are free data types; raw XDR event tables may be billableValidate source-by-source before sizing commitment.
Custom logs and third-party sourcesUsually billable ingestionUse DCR transformations and table plans to control volume

Free Data Type Checklist

Microsoft lists these Sentinel and Log Analytics data types as not charged. Use table-level usage reports to confirm what is actually landing as free versus billable in the workspace.

Connector/sourceFree data type
Azure ActivityAzureActivity
Microsoft Sentinel HealthSentinelHealth
Microsoft 365OfficeActivity for SharePoint, Exchange, and Teams
Microsoft Defender for CloudSecurityAlert (Azure Security Center)
Microsoft Defender for IoTSecurityAlert (Azure Security Center for IoT)
Microsoft Defender XDRSecurityIncident and SecurityAlert
Microsoft Defender for EndpointSecurityAlert (MDATP)
Microsoft Defender for IdentitySecurityAlert (AATP)
Microsoft Defender for Cloud AppsSecurityAlert (MCAS)
Microsoft Defender for Office 365SecurityAlert (OATP)
Microsoft Entra ID ProtectionSecurityAlert (IPC)

Defender Cloud Naming Trap

Cost and connector labels may preserve older product names. Keep SaaS/CASB telemetry separate from cloud infrastructure and workload telemetry when estimating raw event ingestion.

ProductPlanning note
Defender for Cloud Apps (MDCA)SaaS/CASB product. In Defender XDR hunting, CloudAppEvents is populated by Defender for Cloud Apps. Some Sentinel alert labels still show the older MCAS naming.
Defender for Cloud (MDC)Cloud infrastructure and workload product. In Defender XDR hunting, CloudAuditEvents and related Cloud* infrastructure tables are populated by Defender for Cloud. Some Sentinel alert labels still use Azure Security Center naming.