When it comes to protecting your business from increasingly sophisticated cyber threats, a Managed Security Information and Event Management (SIEM) solution is becoming a must-have.
It offers advanced threat detection, real-time monitoring, and incident response capabilities, helping organizations stay ahead of attackers. But, like with any critical service, the big question is: How much does it cost?
The pricing for managed SIEM services can vary significantly depending on your organization’s size, specific needs, and the provider you choose.
In this guide, we’ll break down the standard pricing models and other factors influencing the overall cost so you can plan and budget accordingly.
Common Pricing Models for Managed SIEM
The first step in understanding managed SIEM pricing is knowing how these services are typically billed. Here are the most common models you’ll come across:
Subscription-Based
In a subscription-based model, you pay a recurring fee (either monthly or quarterly) to access the managed SIEM services. This model is usually tiered based on the level of service, data volume, and the features you choose.
The flexibility of paying as you go can be attractive, especially for businesses looking for predictable costs.
Prepayment 100% Upfront
Some providers offer an option to pay for the service entirely upfront. It can cover a contract period, typically for a year or more. The advantage is that you may negotiate a discount by committing to a longer-term contract. Paying upfront also provides financial predictability.
Per-User or Per-Device
This model’s pricing is based on the number of users or devices being monitored. It can work well for organizations with a predictable number of users or devices. It’s also an excellent way to tailor costs directly to your organization’s scale without paying for extra capacity you don’t need.
Volume of Data Processed
Some managed SIEM services charge based on the volume of data being ingested and processed. It typically includes logs from servers, applications, and network devices.
The more data you need to process, the higher your costs will be. This model ensures you’re paying for what you use, making it scalable as your business grows.
Client-Owned SIEM
If you prefer to own the SIEM software, this model involves a one-time upfront licensing fee plus implementation, integration, and ongoing maintenance costs. It gives you complete control, but the cost and effort required to manage the system internally will be higher.
MSSP-Owned SIEM
In this model, the Managed Security Service Provider (MSSP) owns and operates the SIEM solution on your behalf. This is typically subscription-based, with fees covering access to the service, customization, and potentially incident response support. It’s a more hands-off option, where the provider handles everything for you.
Custom Pricing
Some providers offer custom pricing for organizations with unique requirements or large-scale deployments. This might involve specialized integrations, extended support, or additional features tailored to your needs.
What to Expect: Average Costs of Managed SIEM
Typically, managed SIEM services fall between $5,000 to $10,000 monthly, but that’s just a ballpark figure. The actual cost can fluctuate based on several factors:
- Business Size: Larger enterprises with complex networks and multiple locations often pay more due to the sheer scale of their operations.
- Data Volume: The amount of data being processed is a significant cost driver. More data means more logs, which means more resources are needed for storage and analysis.
- Customization: If your organization requires custom dashboards, integrations with existing tools, or tailored correlation rules, expect additional fees.
- Features: Advanced features such as real-time threat detection, compliance management, and incident response capabilities can also increase the price.
The best way to get an accurate idea of cost is to request a quote from potential vendors based on your organization’s specific needs.
Key Factors Influencing SIEM Costs
Let’s dig into a few factors that heavily impact managed SIEM costs and how they may affect your budgeting.
- Data Volume
Managed SIEM services often charge based on the volume of data they process. If your organization generates a high volume of log data (from servers, applications, and network devices), your costs will increase. Data retention periods also matter—longer retention means higher storage costs.
- Deployment Model
The cost can vary based on whether the SIEM is deployed on-premises, in the cloud, or as a hybrid solution. Cloud-based services are typically subscription-based, whereas on-premises solutions may involve higher upfront costs due to hardware and software purchases.
- Retention Period
The length of time you need to retain data can affect pricing. More extended retention periods mean more storage space, leading to higher costs. It’s important to balance regulatory requirements with cost-effective data retention policies.
- Customization & Integration
Not all businesses fit into a one-size-fits-all model. Additional costs may apply if your organization needs custom integrations with existing tools or security systems. The same goes for custom reports, dashboards, or correlation rules tailored to your business.
Managed Services vs. Self-Managed
Opting for fully managed services—where the provider takes care of everything from monitoring to maintenance—typically costs more than self-managing the SIEM solution in-house.
Additionally, businesses that deal with SIEM in-house might turn to outsourced SIEM providers, at some point, to help them solve SIEM challenges, like a lack of in-house staff skills for setting up or maintaining SIEM systems (see “The biggest SIEM challenges” image below).
This type of collaboration is called co-managed SIEM. Moreover, fully managed or co-managed SIEM services usually include additional benefits such as 24/7 support, threat intelligence feeds, and dedicated security analysts, which means that SIEM as a service provided by mature security experts is a more cost-effective solution.
How to Choose the Right Managed SIEM Provider
Choosing the right managed SIEM provider requires careful thought and planning. Here are a few steps to guide you through the process:
- Define Your Needs: Clearly outline your company’s security goals, compliance requirements, and budget constraints. Do you need real-time threat detection? How much data will you process? These will help narrow down your options. Also consider your industry needs – some businesses may need a stronger compliance focus, and others more threat detection due to the nature of their work. Also, consider future growth. Will your SIEM solution scale as your company grows?
- Examine the Provider’s Capabilities: When evaluating potential providers, it’s important to consider their reputation in your industry. Look for a provider that offers scalable services, real-time monitoring, and seamless integration with your existing security stack. To avoid disruptions, ensure they support your business’s tools and platforms. Also, investigate the level of customization they offer. Can they tailor their solution to your specific security needs, or do they follow a one-size-fits-all approach?
- Assess the Provider’s Security Expertise: Verifying the provider’s security expertise is crucial. Check if they have a team of experienced security analysts who can effectively monitor and respond to incidents. Look for a team with certified professionals and a proven track record. Beyond certifications, the provider must have a history of handling security breaches and a proactive approach to threat hunting. A competent team should be able to identify vulnerabilities before they become issues and guide you through mitigation steps.
- Compare Pricing Models: Make sure you understand the full pricing scope. Ask about hidden fees and ensure the provider’s pricing is transparent and flexible. Be aware of any extra costs for extra data storage, long-term data retention, or special features. Some providers offer bundled services that include incident response or compliance tools at a discount, which could be more valuable in the long run.
- Evaluate Compliance Support: Does the provider support GDPR, HIPAA, or PCI DSS compliance? Their services should align with your compliance requirements. It’s crucial their solution not only helps you stay compliant but also provides detailed reporting to make audits less painful. Ask about their experience with your specific regulatory landscape and how they help you stay compliant as regulations change.
- Ask for References: It’s always a good idea to speak with existing customers or request case studies. It will give you insight into how the provider performs in real-world scenarios. Don’t hesitate to ask about response times, customer support experience, and threat detection quality. Real-world feedback will give you a better idea of what it’s like to work with the provider beyond what’s on their website.
Managed SIEM Service by UnderDefense
UnderDefense provides a managed SIEM solution that fits your budget and gives you confidence in your organization’s security posture.
Here’s how our Managed SIEM service can help you overcome common challenges:
- Vendor-agnostic approach
- Accelerate your SIEM time-to-value with quick and painless deployment
- Professional technology fine-tuning and implementation of correlation rules for your specific use case
- Consolidate your SIEM, EDR, and other sensors in a unified, real-time security view
- Flexibility of cooperation models. World-class 24/7 support.
Final Thoughts
SIEM as a service offers significant advantages for businesses looking to bolster their cybersecurity posture. While the costs can vary widely, understanding the different pricing models and what impacts your overall investment can help you make an informed decision.
Whether you’re looking for a subscription-based model or prefer to own the SIEM outright, finding the right balance between cost and functionality is key to ensuring you get the most value from your managed SIEM solution.
And remember, you don’t have to do it all alone. Partnering with a trusted provider who can fine-tune your SIEM, handle the complexities, and provide 24/7 monitoring can save you time and money while keeping your organization secure.
You should comprehend that the cost of SIEM will be just a fraction (or even less) of any breach cost, which is just a matter of time before it takes action.
- Typically, managed cloud SIEM services fall between $5,000 to $10,000 monthly.
- Managed cloud SIEM services generally begin at $15 per asset per month.
- The average monthly cost for managed cloud SIEM as a service hovers between $5,000 and $10,000.
Protecting your networks & Endpoints With UnderDefense Managed Detection and Response (MDR) – Request Free Demo
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