SOC Pricing: Practical Guide to Securing Your Business Without Surprises

Figuring out SOC pricing doesn’t have to be overwhelming. I’ve been there—facing the question of “How much should we spend on security?” You’re not alone.

It’s a tricky balance between protecting your business and managing costs. SOC pricing depends on your unique needs, and understanding the factors behind it can help you make a smart choice without overspending.

Let’s break down how to approach this, so you can confidently invest in your long-term security strategy.

What is a SOC?

A Security Operations Center (SOC) is the nerve center of your cybersecurity strategy, providing real-time monitoring and protection for your business.

With a dedicated SOC, you get a team focused on detecting threats, responding to incidents, and keeping your systems safe 24/7.

Today, the volume of threats is rising fast, and having a SOC ensures that your business stays ahead of those risks. It’s not just important—it’s essential for long-term security.

Why SOC pricing varies: Key factors

SOC pricing can vary depending on several factors, such as the complexity of your infrastructure, the number of assets, and the service levels you require.

Whether you’re protecting 50 endpoints or 5,000, understanding these variables will give you a clearer picture of what to expect in terms of cost.

Several factors can influence how much you’ll pay for SOC services.

These include:

1. Number of devices/endpoints: The more devices you need to monitor, the higher the cost. A typical SOC service will charge based on the number of endpoints in your network. The cost per endpoint can vary depending on the complexity of the service you choose.
2. Service levels: The level of service you choose is another critical factor. Basic services may cover log management and monitoring, while more advanced options include 24/7 incident response, threat detection, and custom security configurations. For example, some businesses need only periodic monitoring, while others require fully integrated solutions that work around the clock. More advanced service levels generally mean higher costs.
3. Security technology stack: Depending on whether you need additional services like an SIEM or EDR, your SOC provider may charge for these tools. If your business already has a tech stack in place, you might be able to negotiate a lower rate, but if you’re starting from scratch, a fully managed SOC might be the most cost-effective way to integrate these essential tools.

In-house or outsourced SOC: Which is right for you?

When deciding between building your own Security Operations Center (SOC) or outsourcing to a third-party provider, it’s crucial to weigh the pros and cons of each.

Running an in-house SOC gives you full control, but it comes with significant challenges like resource limitations, talent shortages, and high operational costs. For example, an in-house SOC for a mid-sized company can cost around $1.95 million annually.

On the other hand, an outsourced SOC can save you from these headaches. Outsourcing offers scalability, 24/7 monitoring, and cost-effective protection.

You get access to top-tier security experts without the hassle of staffing, managing, or dealing with alert fatigue.

Ultimately, your choice should align with your company’s goals, budget, and security needs. For most businesses, especially smaller ones, outsourcing provides flexibility and peace of mind without the overwhelming financial and operational burdens of running an in-house SOC.

The cost of building an in-house SOC

Setting up an in-house SOC sounds appealing, but the reality? It’s a money drain. For a mid-sized company, you’re looking at a whopping $1.95 million annually.

• $850,000 goes toward critical tools like endpoint protection + log management setup and team education—essentials you can’t skip.
• $950,000 for salaries—hiring and retaining top security talent isn’t easy or cheap.
• $150,000 covers day-to-day operations like software updates and system maintenance.

And here’s the kicker—this total can skyrocket based on your specific needs, compliance regulations, and the number of endpoints you’re safeguarding.

Smaller businesses often find themselves stretched thin trying to maintain this level of security on their own.

That’s where outsourced SOC as service swoops in as the hero. For a fraction of the cost, you can gain access to cutting-edge tools, a team of security experts, and round-the-clock monitoring.

The big win? You won’t need to deal with constant hiring, retention issues, or managing an overwhelming amount of alerts. As your business scales, an outsourced SOC can easily scale with you—no need to double your staff or invest in more infrastructure.

Breaking down the SOC as a service pricing formula

SOC pricing is often calculated based on a few variables, such as endpoints, users, and service levels. Here’s a simplified formula that might give you an idea of how much you’ll need to budget:

SOC Cost Formula: SOC = (Number of Endpoints x Cost per Endpoint) + (Number of Servers x Cost per Server) + Service Level Costs + Technology Stack Costs

For example, let’s say you need:

• 300 endpoints
• 10 servers
• 24/7 monitoring with incident response
• SIEM and EDR integration

If a vendor charges $15 per endpoint, $100 per server, and has service fees of $3,000/month for fully managed incident response, your monthly cost could look like this:

Total Cost = (300 x $15) + (10 x $100) + $3,000 + $2,000 for SIEM and EDR = $10,500/month or $126,000/year.

This formula gives you a rough idea of what your investment will look like, but it’s essential to get a customized quote based on your specific needs.

Why SOC services are worth the investment

The price of SOC services may seem high at first glance, but consider the alternative—a cybersecurity breach could cost far more. From ransomware attacks to data leaks, the costs of not having a SOC in place can easily run into the millions.

Here are a few reasons why SOC services are a smart investment:

• 24/7 monitoring: SOC services provide continuous monitoring, ensuring that your organization is protected at all times. Around-the-clock coverage means threats can be detected and neutralized before they cause significant damage, even during off-hours or holidays.
• Incident response: When an incident occurs, the SOC team is there to respond immediately, minimizing damage and preventing future breaches. Their swift action ensures a coordinated defense, limiting downtime and safeguarding critical business operations.
• Cost of a breach: The average cost of a data breach is well into the hundreds of thousands, not including the damage to your reputation. SOC services help mitigate these risks by identifying vulnerabilities early, and preventing incidents that could lead to financial loss, legal implications, and lost trust from clients.
• Compliance: SOC services also help ensure that your business meets compliance standards, such as PCI DSS, HIPAA, and GDPR, reducing the risk of fines. Continuous monitoring and reporting ensure you meet industry regulations, making audits smoother and protecting your business from costly penalties.

SOC vs. MDR: Which is right for you?

Both SOC and Managed Detection and Response (MDR) services aim to protect your business, but they differ in scope. SOC services focus on monitoring your environment, detecting potential threats, and responding to incidents as they arise. MDR, on the other hand, offers more proactive threat-hunting and advanced threat-detection capabilities.

SOC services are ideal if you already have a robust security team and need ongoing monitoring and incident response. MDR is better suited for businesses looking for a fully managed solution that includes continuous threat hunting, advanced analytics, and expert remediation.

Customizing SOC services for your business

No two businesses are the same, which is why many SOC providers offer flexible service levels and customization options. This means you can choose the level of protection that fits your needs and budget.

Whether you need basic log management or a fully managed SOC with incident response and SIEM integration, there’s a pricing model that can work for you.

It’s important to have a conversation with your SOC provider to understand what services you truly need and which ones you can skip. Customizing your SOC solution can help keep costs down while still giving you the protection your business requires.

Don’t let SOC costs hold you back

Security breaches are costly, yet investing in a fully managed SOC service is a wise decision. While the costs can vary, the benefits of continuous protection, incident response, and regulatory compliance far outweigh the price.

If you’re unsure how much SOC services will cost your business, consider using a pricing calculator or talking to a provider for a custom quote.

Getting the right SOC service at the right price ensures that your business is protected now and in the future.

Managed SOC by UnderDefense

UnderDefense provides a managed SOC service that fits your budget and gives you confidence in your organization’s security posture. Here’s how our managed SOC service can help you overcome common challenges:

• 24/7 Availability: Our security experts are a click away, ensuring continuous protection for your business.
• Proactive Threat Hunting: We don’t just wait for attacks; we actively search for threats, providing context and remediation advice.
• Operational Transparency: Insights into alert-to-fix timelines, threat contexts, and regular reports for full visibility into your security posture.
• Optimized Tooling: Fine-tuned security tools, reducing alert noise by over 82% and providing a unified view of your security landscape.

With UnderDefense Managed SOC, you can confidently protect your digital assets and maintain compliance while focusing on your core business objectives.

In conclusion: SOC is a smart investment

While SOC services come with a price tag, they offer protection that can save your business from the financial and reputational damage of a cyberattack.

With the right SOC solution, you’ll have peace of mind knowing that your security is managed by experts who are ready to respond when it matters most.

By understanding the factors that influence SOC pricing, you can make an informed decision and choose the service that fits your budget and your security needs.