Log Analytics Cost Optimisation

Reduce Microsoft Sentinel and Azure Monitor Logs spend without losing security value - through ingestion design, log plan selection, filtering, retention, and governance.

Microsoft Sentinel costs are influenced heavily by the Azure Monitor Logs / Log Analytics design that sits underneath it - especially what data you ingest, which tables you send it to, how long you retain it, and whether you use commitment tiers or other pricing constructs. Microsoft provides specific guidance on planning Sentinel costs and on reducing costs, including using commitment tiers, selecting appropriate log plans, and implementing cost-aware data collection strategies.
LW IT Solutions delivers Log Analytics cost optimisation as a structured programme: we baseline current ingestion and retention, identify the highest-cost contributors, and redesign ingestion to preserve the telemetry that drives detections and investigations. We then implement pragmatic changes - such as table/log-plan selection, ingestion-time filtering or transformations where appropriate, retention and archive strategy, and governance controls - so security outcomes remain intact while costs become predictable and defensible.

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Service Overview

Highlights

  • Spend baseline: identify top ingestion tables, data sources, and high-volume contributors; establish a cost/GB view per source
  • Log plan design: align tables to appropriate log plans (Analytics / Basic / Auxiliary where applicable) based on query and retention needs
  • Commitment tier strategy: evaluate commitment tiers and dedicated clusters where volume thresholds justify them
  • Data filtering and transformation: reduce ingestion by filtering unneeded rows/columns or projecting away low-value fields using supported methods
  • Retention and archive: align interactive retention to operational needs; shift long-term retention to archive where appropriate
  • Detection impact protection: validate that cost controls do not break key Sentinel content (rules, UEBA/ML features, entity experiences)
  • Governance: implement a change control model so new sources and tables are onboarded with cost and value approval
  • Reporting cadence: establish monthly/quarterly dashboards and a backlog model for continuous optimisation

Business Benefits

  • Predictable Sentinel and Log Analytics spend aligned to security value
  • Reduced ingestion volume and storage costs without compromising critical detections
  • Clear ownership and governance to prevent cost drift as new sources are onboarded
  • Better signal-to-noise ratio by focusing on high-value telemetry and reducing low-value volume

Typical use cases

  • Sentinel deployments with rapidly increasing monthly ingestion costs
  • Organisations onboarding many new data sources without cost controls
  • Security teams under pressure to justify Sentinel spend to finance
  • Workspaces retaining large volumes of low-value or rarely queried logs
  • Environments preparing for commitment tier or dedicated cluster decisions

Objectives & deliverables

What Success Looks Like

  • Reduce Log Analytics and Sentinel spend without weakening security outcomes
  • Align data ingestion to what is actually used for detection and response
  • Create a defensible cost model that scales with security maturity
  • Prevent future cost escalation through clear ownership and controls
  • Provide stakeholders with transparent cost and value reporting

What You Get

  • Cost baseline report: workspace ingestion profile, top tables/sources, and cost drivers
  • Optimisation backlog: prioritised actions with expected impact, dependencies, and risk/quality considerations
  • Target ingestion design: guidance on which data to collect, where to send it (tables/log plans), and how to retain it
  • Implemented quick wins (optional): agreed changes delivered with validation and rollback-safe approach
  • Governance pack: onboarding checklist for new data sources, approval model, and periodic cost review cadence

How It Works

  1. Baseline - analyse ingestion, retention, and cost profile; identify top contributors and usage patterns.
  2. Design - define the target data strategy: what to keep, where to store it (log plans/tables), and how long to retain it.
  3. Implement - deliver quick wins first (table/log plan changes, retention tweaks, filtering/transformations where appropriate).
  4. Validate - confirm detections, investigations, and dashboards remain effective; adjust to avoid functional regressions.
  5. Govern - deliver ongoing reporting and onboarding guardrails to prevent drift and maintain cost control.

Engagement Options

  • Cost Assessment - ingestion and spend baseline with optimisation recommendations
  • Quick Wins Sprint - implement high-impact, low-risk cost reductions
  • Full Optimisation Programme - phased redesign, implementation, and governance setup
  • Ongoing Cost Governance - periodic reviews and advisory support

Common Bundles

Customers who use this service often bundle with these services

Sentinel Deployment & Integration
Deploy Microsoft Sentinel with structured data onboarding, workspace design, RBAC, and detection content so your SOC operates effectively and predictably.

SOAR Automation & Playbook Design
Design Microsoft Sentinel SOAR automation and playbooks that automate triage, enrichment and response, reducing analyst effort while improving incident consistency.

Legacy SIEM to Sentinel Migration
Migrate from legacy SIEM platforms to Microsoft Sentinel using phased deployment, use case mapping, and controlled cutover that reduces operational risk.

Defender for Cloud (CSPM/CWPP)
Baseline cloud security posture and protect workloads using Microsoft Defender for Cloud, covering CSPM governance, recommendations and targeted workload protection.

Frequently Asked Questions

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