Independent reference. Not affiliated with Splunk, Microsoft, IBM, Elastic, Sumo Logic, LogRhythm, or any SIEM vendor.
SIEM Cost Reference - Updated 25 April 2026

How much does a SIEM cost in 2026?

The vendor-neutral SIEM pricing reference. Compare Splunk, Microsoft Sentinel, IBM QRadar, Elastic, Sumo Logic, and LogRhythm side by side. No email gates. No vendor bias. Just transparent cost data so you can build a defensible business case.

Small Org
<100 employees, <10 GB/day
$30K to $150K
per year

Sentinel, Blumira, or Wazuh dominate this band. Often a single analyst plus part-time MSSP coverage.

Mid-Market
100-1,000 employees, 10-100 GB/day
$150K to $500K
per year

Sumo Logic, Sentinel commitment tiers, or Elastic Cloud. Two to four FTE analysts is the typical floor.

Enterprise
1,000-10,000 employees, 100-500 GB/day
$500K to $2M+
per year

Splunk, QRadar, or Sentinel commitment. Five to ten analysts plus an in-house engineering lead.

Multi-Vendor SIEM Cost Calculator
Six vendors. One environment. Live estimates.
50 GB/day
1 GB500 GB1 TB+
2 FTE
$110K base + 28% benefits per analyst
Estimates only. All figures are modelled from public list pricing and analyst summaries. Negotiated deals routinely save 20-40%. Always obtain a vendor quote.
Best fit (annual)
Sumo Logic
$297K
Most expensive
IBM QRadar
$418K
Spread
$121K
Cheapest vs costliest
01Sumo LogicCheapest
Tier flat-rate
Best for: SaaS-first, small to mid security teams
$297K
License $57KStorage $750Staff $239K
$296,685
/ year
Resource / per-user
Best for: Engineering-heavy teams, custom needs
$340K
License $16KStorage $1KStaff $324K
$340,403
/ year
Per GB (commitment tiers)
Best for: Microsoft 365 / Azure shops, mid-market
$343K
License $75KStorage $900Staff $268K
$343,245
/ year
Per user + base
Best for: Mid-market with fixed analyst headcount
$351K
License $69KStorage $1KStaff $282K
$351,425
/ year
Per GB ingested
Best for: High-value security data, mature SOCs
$393K
License $110KStorage $2KStaff $282K
$393,100
/ year
Per EPS (events/sec)
Best for: Compliance-heavy, large enterprise
$418K
License $134KStorage $2KStaff $282K
$417,500
/ year
Total includes license, storage at $0.10/GB/mo (hot, first 90 days) plus $0.04/GB/mo (warm) on 8x compressed volume, infrastructure surcharge for on-prem and hybrid deployments, and analyst staffing at $110K base plus 28% benefits. Click any vendor name for a deep-dive pricing breakdown.
Section 02

Vendor pricing overview

The six SIEM platforms that appear in 90 percent of enterprise shortlists. Each row links to a deep-dive page with cost scenarios and optimisation tips.

How pricing models work
VendorPricing modelTypical rangeBest for
SplunkPer GB ingested$2,000-$3,500/GB/yrHigh-value SecOps, mature SOC
Microsoft SentinelPer GB (commitment tiers)$3.43-$5.22/GBMicrosoft / Azure shops
IBM QRadarPer EPS$2.40-$4.60/EPS/moCompliance-heavy, on-prem
Elastic SecurityResource-based$0.55-$1.10/GBEngineering-strong teams
Sumo LogicTier flat-rate$2.30-$3.10/GBPredictable cloud bills
LogRhythmPer user + base$40K base + $850/userStable analyst headcount

Ranges are estimates from public list pricing, vendor pricing pages, and Gartner public summaries as of Q1 2026. Negotiated agreements typically deliver 20-40 percent off list. Always obtain a vendor quote.

Section 03

Where the money actually goes

Licensing is rarely more than 40 percent of total SIEM spend. The other 60 percent splits across staffing, storage, integration, tuning, and threat intelligence. Understanding the full split is what separates a credible business case from a finance-rejected one.

Cost share by categoryYear 1 TCO
38%
22%
14%
10%
9%
Licensing 38%
Per-GB, per-EPS, or flat-rate vendor fees
Staffing 22%
Analysts, engineers, on-call coverage
Storage 14%
Hot, warm, and archive log retention
Integration 10%
Custom connectors, log source onboarding
Tuning 9%
Detection rule development and false-positive reduction
Threat Intel 7%
Commercial feeds and enrichment data

The licensing illusion

Vendor pricing pages quote licensing alone. Year-two costs drop sharply as integration and initial tuning roll off, leaving licensing plus staffing as the steady state.

Year 1 TCO100% baseline
Year 2 TCO~75-80%
Year 3 TCO~70-75%
Full hidden-cost breakdown
Section 04

Which SIEM fits your situation?

Five common buyer profiles with the SIEM that genuinely fits each. Click any card for the deep-dive pricing and TCO breakdown.

Recommended

Microsoft 365 / Azure shop

Sentinel almost always wins. Free Microsoft 365 ingest, native AAD and Defender integration, and commitment tiers from $3.43/GB make it the lowest-friction option.

Pick:Microsoft Sentinel
Recommended

Compliance-driven enterprise

QRadar still wins long-tail compliance audits. PCI, HIPAA, and FedRAMP packs ship in-product. Splunk Enterprise Security is the alternative if log volume is the bottleneck.

Pick:QRadar or Splunk ES
Recommended

Cloud-native startup

Sumo Logic flat tiers or Sentinel PAYG. Both keep ops overhead near zero. Avoid Splunk and on-prem QRadar unless you have a security engineer free to operate them.

Pick:Sumo Logic / Sentinel
Recommended

High-volume enterprise

Splunk Cloud or Splunk Enterprise on a multi-year EA. Negotiated discounts of 25-40% are normal at 500 GB/day plus. Workload pricing softens the per-GB hit.

Pick:Splunk (multi-year EA)
Recommended

Engineering-heavy team

Self-managed Elastic Security or Wazuh. The licence is cheap or free, but expect to spend $150K-$200K per dedicated engineer plus infrastructure.

Pick:Elastic / Wazuh
See full cost-by-organisation-size guide
Section 05

SIEM cost FAQ

How much does a SIEM cost per year?

Annual SIEM cost ranges from about $30K for a small organisation running Sentinel or Wazuh up to $5M-plus for a Fortune 500 running Splunk Enterprise Security at high volume. The honest middle is $150K-$500K for mid-market organisations ingesting 25-100 GB per day, including licensing, storage, and a small analyst team. Total cost of ownership reliably runs 2x to 3x the headline licence price once you add staffing and integration. Use the calculator above to model your own environment.

Which SIEM is cheapest?

There is no single cheapest SIEM. For Microsoft-heavy environments, Sentinel is almost always the lowest TCO because Microsoft 365 logs ingest free. For organisations under 50 GB per day with engineering talent, Wazuh on commodity hardware can be the cheapest in pure dollars, although staffing eats the savings. For predictable mid-market spend, Sumo Logic flat tiers often beat per-GB models. The calculator on this page ranks the six major options against your specific log volume.

Is a SIEM worth the cost?

For organisations subject to PCI, HIPAA, SOX, or similar regulations, a SIEM is effectively non-negotiable. For others, the ROSI calculation depends on breach probability and breach cost. The IBM Cost of a Data Breach Report 2025 puts the US average at $10.22M. A $250K annual SIEM that lowers breach probability by 25% returns roughly $2.5M in expected loss reduction, a 10x ROSI. See the full ROI page for the detailed framework.

What hidden costs come with a SIEM?

Six hidden cost buckets reliably catch security teams off guard: storage and retention ($18K-$180K per year), integration and custom connectors ($75K-$300K in year one), tuning and detection-rule development ($50K-$120K initial spend), staffing ($170K-$900K per year for 1-6 analysts), threat intelligence feeds ($10K-$80K per year), and training plus certifications ($15K-$25K for the first year). Year-one TCO is typically 2x to 3x the licensing line item.

Can I just use a free SIEM?

Open-source SIEMs like Wazuh and the ELK Stack are free as software but not free to operate. Realistic year-one cost for a 50 GB-per-day Wazuh deployment runs $180K-$280K once you add infrastructure and an engineer who genuinely understands Elasticsearch. That is roughly the same as Sentinel at the same volume, with substantially more operational risk. Free SIEMs win when you have an existing data engineering practice and lose when you do not.
Sister cost references

Building a full security stack?

SIEM rarely lives alone. Endpoint detection, managed response, and extended detection all carry their own pricing structures. The same vendor-neutral approach applies on every site.

Updated 2 May 2026