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Building a competent 24×7 security operations center typically costs well over a million dollars annually just to reach “good enough,” with advanced SOCs easily exceeding $2-3 million per year. The minimum staffing requirement is 8-12 full-time analysts (at approximately $98,000+ per analyst annually), plus management, engineering support, and ongoing training expenses.
Technology costs include SIEM platforms, EDR tools, threat intelligence feeds, network forensics, case management systems, and orchestration platforms—which can range from hundreds of thousands to millions depending on organization size.
Hidden expenses include recruitment costs, analyst turnover, facility infrastructure, and continuous tool maintenance. For most organizations, these economics make managed SOC services a more practical alternative, delivering equivalent capabilities at a fraction of the cost.
SOC cost: Understanding the investment
The true cost of building and operating a security operations center goes far beyond simply hiring a few analysts. According to Expel’s analysis, understanding SOC costs has more to do with the capability you’d like to field than just the people you need to hire to run 24×7.
One of the biggest factors impacting cost is how “good” you want to be. Do you need an excellent security operations center? Or just one that’s good enough? Or maybe something in between? There’s a cost you’re unlikely to go under if you’re shooting for competent, and beyond that, the sky’s the limit. Some organizations spend half a billion dollars on cybersecurity, with significant portions dedicated to security operations.
The challenge is not all 24×7 SOCs are created equal. A basic SOC focused primarily on detection looks vastly different from an advanced SOC with dedicated hunt teams, security engineers, and sophisticated automation. Understanding which type you need helps determine realistic budget requirements.
How much does a 24×7 SOC cost: Staffing requirements
Staffing represents the largest and most unavoidable cost category for any security operations center. The mathematics of 24×7 coverage create baseline requirements organizations cannot significantly reduce without compromising effectiveness.
Minimum analyst headcount: You need at least 8-12 people operating in a SOC to maintain 24×7 shift coverage. You could probably get by with eight, but vacations and illness will result in individuals being stranded alone on shift—creating both operational risk and analyst burnout. The more realistic minimum is 10-12 analysts to provide sustainable coverage across all shifts, weekends, and holidays.
Analyst salaries alone create substantial baseline costs. Entry-level security analysts command approximately $98,000 per year in salary. More experienced analysts—the senior and lead analysts you need for shift leadership and complex investigations—earn significantly more. For a basic SOC with 12 analysts at various experience levels, expect annual salary costs around $1.2-1.5 million before benefits, taxes, and overhead. And don’t forget to add on retention expenses (like bonus) to that total, too.
Total compensation extends beyond base salary. Add benefits (health insurance, retirement contributions, paid time off), payroll taxes, and overhead, and the true cost per analyst increases by 30-40%. This brings your actual analyst cost to approximately $1.6-2.1 million annually for minimum staffing.
Management and leadership add additional costs. Someone needs to manage the SOC—handling hiring, performance reviews, scheduling, process development, and strategic planning. Depending on SOC size and complexity, this might require a SOC manager ($120,000-150,000) and potentially a director-level leader for larger operations.
Specialized roles increase costs as SOCs mature. Advanced SOCs employ threat intelligence analysts to ensure detection feeds stay current and relevant, security engineers (or “SOC plumbers”) to build automation and integrate tools, and dedicated hunt teams focused on finding threats detection tools miss. Each additional role adds $100,000-150,000+ in annual costs.
Security operations center budget: Technology costs
Technology represents the second-largest cost category, and while it’s a fraction of staffing costs at smaller organizations, tech expenses can skyrocket as organizations grow.
SIEM platform licensing forms the foundation of most SOC technology stacks. SIEM costs vary dramatically based on data volume and deployment model (cloud versus on-premise). For an organization with 5,000 employees, expect SIEM costs ranging from $100,000-300,000 annually depending on vendor and data volume.
Endpoint detection and response (EDR) tools provide visibility into host activity essential for threat detection and investigation. EDR licensing typically costs $30-80 per endpoint annually, meaning an organization with 5,000 endpoints might spend $150,000-400,000 yearly on EDR alone.
Network security and forensics tools enable traffic analysis and deep packet inspection capabilities. Full packet capture systems, network detection and response platforms, and traffic analysis tool subscriptions can add $100,000-300,000 to annual technology costs depending on network size and complexity.
Threat intelligence feeds provide context about emerging threats, malicious indicators, and attacker tactics. Commercial threat intelligence platforms range from $50,000-200,000 annually depending on feed quality, coverage breadth, and organizational size.
Security orchestration platforms automate workflow and integrate disparate security tools. While security orchestration, automation, and response (SOAR) platforms promise efficiency, they often require significant engineering effort to implement and maintain. Budget $75,000-200,000 for SOAR licensing and implementation.
Case management and ticketing systems, vulnerability management platforms, cloud security posture management tools, and additional specialized technologies add further costs. For an organization with 5,000 employees, total technology costs can easily reach $500,000-1,000,000 annually, with larger organizations spending significantly more as data volumes and complexity increase.
Cost to build SOC: Hidden expenses
Beyond obvious staffing and technology costs, building a SOC involves numerous hidden expenses organizations frequently underestimate during initial planning.
Recruitment and hiring costs consume significant resources. Given the severe cybersecurity talent shortage, finding qualified analysts takes time and money. Recruiter fees, job board advertising, candidate screening, and interview processes can cost $15,000-25,000 per hire. For a 12-person SOC, initial recruitment alone might cost $180,000-300,000.
Analyst turnover creates ongoing costs. Burnout rates in security operations are notoriously high, with many organizations experiencing 20-40% annual turnover. Each departing analyst requires replacement recruitment, onboarding new staff, and knowledge transfer—costing both money and operational effectiveness. Annual turnover costs can easily add $100,000-200,000 to SOC budgets.
Training and professional development represent essential ongoing expenses. Security threats evolve constantly, so your analysts need ongoing training, certifications, and professional development. Budget $3,000-5,000 per analyst annually for training, plus time away from operations for conference attendance and certification preparation.
Infrastructure and facility costs apply if you maintain a physical SOC. Dedicated space, network connectivity, workstations, monitors, and physical security all add expenses. Even virtual SOCs require remote work infrastructure, collaboration tools, and secure communication platforms.
Tool maintenance and optimization consume more time than organizations expect. SIEM platforms require continuous tuning, detection rules need regular updates, integrations break and need fixing, and vendors release updates requiring evaluation and implementation. This operational overhead adds thousands of hours annually that must be staffed.
Ramp-up time creates opportunity costs. Building a SOC from scratch typically takes 6-12 months before you have fully operational 24×7 coverage. During this period, you’re paying staffing and technology costs while still building capability—representing significant investment before seeing security value.
SOC operational costs: What maturity levels actually cost
Understanding SOC cost requires examining different maturity levels, as capability requirements dramatically impact total investment.
The basic SOC ($1.2-1.8 million annually) focuses primarily on detection with limited investigation depth. Technology investments are modest—primarily a SIEM platform deployed years ago that hasn’t been kept current, plus basic endpoint visibility. The SOC employs 10-12 analysts working primarily in the SIEM with minimal tier structure. This level provides fundamental 24×7 monitoring but struggles with advanced threats and investigation complexity.
The intermediate SOC ($1.8-2.5 million annually) has mastered detection with good visibility into organizational environments. Technology investments include SIEM, EDR, and network forensics providing advanced threat detection. Analysts operate in multiple tiers, with senior practitioners leveraging specialized tools for complex investigations. The team wants to be proactive but operational reality makes hunting difficult. This level provides solid detection and response but limited proactive capabilities.
The advanced SOC ($2.5-3.5+ million annually) makes tremendous tooling investments to free analyst time. The SIEM is well-tuned with correlation rules integrating specialized products. Tier one and two analysts work efficiently in the SIEM while tier three handles sophisticated analysis in dedicated tools. A separate hunt team (not in the 24×7 rotation) focuses exclusively on finding threats detection missed. Intelligence analysts maintain threat feeds and provide context, while security engineers (“SOC plumbers”) build automation integrating security products. This level provides comprehensive coverage with proactive threat hunting.
The learning SOC ($3.5+ million annually) achieves extensive automation through orchestration frameworks and metrics-driven continuous improvement. Like the advanced SOC, this organization invests enormously in automation and analytics, ensuring humans focus only on work requiring human judgment. Everything else is handled by software. Metrics drive constant improvement in false positive rates, investigation times, and security investment value. This represents the highest maturity level most organizations can reasonably achieve.
In-house SOC expenses: Making the decision
Understanding these costs helps organizations make informed decisions about building versus outsourcing security operations capabilities.
The realistic minimum for a competent in-house SOC sits around $1.2-1.5 million annually. This gets you basic 24×7 coverage with minimal capability—detection-focused operations with limited investigation depth and no proactive hunting. For many organizations, this baseline investment doesn’t deliver the security outcomes they need.
Achieving “good” capability requires $2-2.5 million annually. This investment level provides solid detection and response with tiered analyst structure, good technology integration, and reasonable investigation capabilities. However, you’re still limited in proactive work and may struggle keeping pace with sophisticated threats.
True excellence demands $3+ million and continuous investment in people, process, and technology. Even at this level, organizations face challenges with analyst turnover, maintaining expertise across emerging security domains, and sustaining 24×7 operations without burnout.
The alternative: Managed SOC services deliver equivalent capabilities at a fraction of these costs—typically through subscription pricing, which is more predictable than building in-house. Organizations report it would cost approximately $1 million more than their current managed SOC investment to bring everything in-house for minimal 24×7 coverage, not including opportunity costs for strategic work their analysts couldn’t pursue if focused exclusively on operations.
When building your SOC budget, honestly assess: Can you afford $1.5-3+ million annually for security operations? Can you recruit and retain specialized talent in your geographic area? Do you have 6-12 months to build capability before achieving operational coverage? Will your team focus on operations or strategic security initiatives?
As one CISO concluded, “If you’re sitting here thinking ‘oh jeez, this isn’t the kind of money I want to be spending. Security’s not a core part of my business, and there’s no way we’re going to become experts at it,’ well, a great many people end up at that same conclusion.” For these organizations, outsourcing security operations makes both financial and strategic sense.
Frequently asked questions
What are the major cost drivers for a SOC? The two largest cost drivers are staffing and technology. Personnel costs represent the biggest expense—you need 8-12 full-time analysts minimum for 24×7 coverage, plus management overhead. At approximately $98,000+ per analyst in salary alone (before benefits, taxes, and overhead), staffing costs easily reach $1.2-2 million annually. Technology costs include SIEM platforms, EDR tools, threat intelligence feeds, network forensics, orchestration platforms, and case management systems, ranging from $500,000-1,000,000+ depending on organization size. Additional drivers include ongoing training, recruitment and turnover costs, facility infrastructure, and continuous tool maintenance.
How many people do you need for 24×7 coverage? The minimum number of people operating in a SOC is 12, though you could get by with eight if absolutely necessary. However, with only eight analysts, vacations and illness will result in individuals being stranded alone on shift—creating burnout risk and operational gaps. A more sustainable model uses 10-12 analysts for basic coverage, with larger numbers required as you add tier structure, specialized roles, or separate hunt teams. Advanced SOCs might employ 20-30+ people including tiered analysts, hunt teams, intelligence analysts, and security engineers.
What’s the technology budget for a SOC? Technology budgets vary dramatically based on organization size and SOC maturity level. For an organization with 5,000 employees, basic SOC technology (SIEM, EDR, basic threat intelligence) costs $200,000-400,000 annually. Intermediate SOCs with better detection and investigation tools spend $500,000-800,000. Advanced SOCs with comprehensive tooling, network forensics, orchestration platforms, and sophisticated automation can exceed $1,000,000 in annual technology costs. Larger organizations with more endpoints, higher data volumes, and complex environments see technology costs increase proportionally—potentially reaching millions annually.
Are there hidden costs in SOC operations? Yes—numerous hidden costs catch organizations off guard. Recruitment expenses for finding qualified analysts can run $15,000-25,000 per hire, totaling $180,000-300,000 for initial staffing. Analyst turnover (often 20-40% annually due to burnout) creates ongoing recruitment and training costs exceeding $100,000-200,000 yearly. Training and certifications cost $3,000-5,000 per analyst annually. Tool maintenance, optimization, and integration work consume thousands of hours that must be staffed. Ramp-up time of 6-12 months means paying costs before achieving full operational capability. These hidden expenses can add $300,000-500,000 to annual SOC budgets.
How does SOC cost scale with organization size? SOC costs scale non-linearly with organization size. While smaller organizations might achieve basic SOC capability for $1.2-1.5 million annually, larger enterprises face dramatically higher costs. Technology licensing often prices based on user count or data volume—SIEM costs for 50,000 employees might be 5-10x higher than for 5,000 employees. Network complexity increases investigation difficulty, requiring more specialized analysts. Cloud adoption and SaaS application proliferation expand attack surfaces requiring additional monitoring. Very large organizations (10,000+ employees) can easily spend $5-10+ million annually on comprehensive security operations, with some spending significantly more for advanced capabilities.