SIEM pricing models: per-GB vs per-EPS vs per-user vs flat-rate
The four billing structures every SIEM uses, the trade-offs of each, the vendors behind each, and a side-by-side comparison of the same environment priced under all four. Worked examples, no hand-waving.
Model comparison matrix
| Model | Vendors | Best for | Worst for | Predictability |
|---|---|---|---|---|
| Per GB ingested | Splunk, Sentinel, Datadog | High-value, low-volume telemetry | Verbose firewall and NetFlow | Low (volatile with noise) |
| Per EPS | QRadar, ArcSight | Quiet, predictable sources | Spiky bursts that breach peak | Medium (peak governs) |
| Per user | Elastic Security tiers, LogRhythm | Stable analyst headcount | Growing teams, MSSPs | High (linear with users) |
| Flat-rate tiers | Sumo Logic, Panther, Blumira | Predictable budgets, SMB | Volume crossing tier ceilings | High within tier; cliffs between |
Per-GB ingested
The dominant SIEM pricing model in 2026. The vendor meters every log byte that crosses the ingest boundary. Compression at rest does not reduce the bill. Splunk, Sentinel, Datadog, and most newer cloud SIEMs use this model.
Wins when security data is high-value (authentication logs, EDR alerts, threat detections) and low volume. Per-GB lines up cost with detection value.
Loses when verbose, low-value sources dominate. Firewall syslog, NetFlow, and DNS query logs can quickly consume 80 percent of GB billing while contributing 10 percent of detection value.
Worked example. 50 GB per day at $5.22/GB Sentinel PAYG = $95,265 per year. Filter 30 percent of low-value logs at the agent and the same environment costs $66,686. Filtering pays back faster than negotiation.
Per-EPS (events per second)
QRadar and ArcSight bill on event rate, not data volume. The metric is sustained events per second across all log sources, with a separate peak ceiling. EPS billing flatters quiet sources and penalises spiky ones.
Wins when log sources are predictable and balanced. Compliance environments with steady audit logging benefit.
Loses when bursty sources push the peak EPS ceiling. Web traffic spikes, batch jobs, or attack waves can force a tier upgrade based on bursts that don't reflect sustained value.
Worked example. 50 GB per day with mixed sources averages roughly 3,500 EPS sustained. QRadar on Cloud at this tier runs $95K-$110K per year on licence. Equivalent per-GB billing would run $95K-$135K depending on vendor.
Per user
Elastic Security tiers and LogRhythm bill primarily on named user count, often with a base platform fee and a separate component for ingested or stored data. Per-user pricing decouples cost from log volume.
Wins when analyst headcount is small and stable. A two-analyst team can ingest substantial volume without the bill scaling.
Loses when the team grows, when MSSPs need many low-touch viewer accounts, or when audit requires every department head to access reports.
Worked example. Elastic Platinum at 25 users = $37,500 per year on user fees. Add resource-based ingest at 50 GB per day (~$45K) for $82,500 total before storage or staff. Comparable to per-GB Sentinel but without ingest pressure.
Flat-rate tiers
Sumo Logic, Panther, and Blumira sell tiered subscriptions: a fixed monthly fee covers a defined ingest ceiling, log retention period, and feature set. Cross the ceiling and you either upgrade tier or pay overage rates.
Wins when volume is predictable and growth is slow. The bill is genuinely flat for budgeting.
Loses when volume crosses the ceiling. Overage rates are typically 1.5-2x the in-tier per-GB equivalent. Tier upgrades create cliffs.
Worked example. Sumo Logic Enterprise at 50 GB per day runs ~$80K-$95K per year. The same volume on Splunk Cloud would run $135K. Flat tiers genuinely save money inside the tier; the discipline is monitoring ingest against the ceiling.
Same environment, four pricing models
Annual licensing only (no staffing or storage). Same log volume; different billing structure.
| Model and vendor | Small (10 GB/day) | Mid (50 GB/day) | Enterprise (200 GB/day) |
|---|---|---|---|
| Per GB (Splunk Cloud) | $30K | $135K | $580K |
| Per GB (Sentinel) | $15K | $74K | $240K |
| Per EPS (QRadar Cloud) | $28K | $110K | $340K |
| Per User (Elastic Platinum) | $25K | $95K | $320K |
| Flat-rate (Sumo Logic) | $22K | $80K | $280K |
Comparison assumes mixed log source profile, 365-day retention, no negotiated discount, and no premium add-ons. Real-world deals routinely vary 20-40 percent either direction.