Microsoft Sentinel in the Agentic Era: What’s Changing and Why it Matters

Jason Webster

Field CTO - Microsoft 365 & Azure

Microsoft Sentinel is entering a new era defined by AI-driven security operations and agentic intelligence. Learn how these updates transform detection, response, and cost optimization across your Microsoft ecosystem.


The Evolution of Microsoft Sentinel

Microsoft Sentinel has long been the foundation for building cloud-native security operations. It began as the leader in SIEM modernization, but the September 2025 updates redefine how security teams will detect, respond, and adapt to threats moving forward.

This isn’t just a version update. It’s a fundamental shift toward agentic security, where automation evolves into intelligent, reasoning systems that can act alongside human defenders.


Understanding the Agentic Era

The agentic era marks a transition from basic automation to intelligent agents that can reason, act, and adapt dynamically.
In Microsoft Sentinel, this means the introduction of:

  • AI Copilots for natural language interaction
  • Context-aware recommendations for faster response
  • Adaptive threat agents that take intelligent actions

Instead of writing complex queries to correlate events, security analysts can now simply ask:

“What was the issue, and which systems were impacted?”

This new architecture enables Sentinel to become a decision-making partner, not just a log collector. The Sentinel Graph maps entities and relationships across assets, identities, and activities—while the Model Context Protocol (MCP) provides a structured framework for both AI and human analysts to query data contextually, similar to Microsoft Copilot’s foundation.


Cyber security team conducting cyber surveillance in governmental control room

Example: Agentic Automation in Action

Imagine creating a phishing-focused agent that alerts users, warns of suspicious messages, and even triages false positives automatically.

These agents move beyond alerting– they take action, enabling teams to focus on real threats.

Expert Insight: “The most relevant AI Agents in SecOps are the Security Copilots,” explains Chris Stegh, CTO of eGroup.

“Clients with large SOC teams can optimize valuable analyst time through natural-language interfaces that reduce risk faster. Smaller teams can still benefit from managed partners for scalability.”


Sentinel’s Migration to the Microsoft Defender Portal

One of the biggest changes is the migration of Sentinel into the Microsoft Defender portal, aligning with Microsoft’s vision of unified security visibility.

Why It Matters

  • Consolidation: Centralized visibility across endpoints, identities, and cloud workloads.
  • Efficiency: Easier correlation of signals and faster incident triage.
  • Consistency: Streamlined interface for teams already using Defender for Endpoint, Identity, or Cloud.

  • Migration Deadline:
    Organizations should complete the migration to the new Defender experience by March 31, 2026. Plan ahead to replace legacy features that won’t carry over.
Cybersecurity Team using Computer in Blue Light

Sentinel Data Lake: Preparing for AI Workloads

Another major advancement is the Sentinel Data Lake, separating compute from storage to support both cost efficiency and AI scalability.

Key Benefits

  • Lower storage costs: Retain data longer without inflating budgets.
  • AI-readiness: Enable machine learning and forensic analysis with historical context.
  • Operational efficiency: Reduce administrative overhead managing retention.
FeatureBenefit
Compute/Storage SeparationScalability and lower cost
Historical Context StorageBetter AI decision-making
Data Retention OptimizationReduced maintenance time

These improvements don’t just save money– they empower AI-driven threat detection by providing the long-term context agents need to make informed, autonomous decisions.


Cost Optimization: New Pricing Models

Microsoft introduced new Sentinel pricing tiers designed for flexibility and predictability:

  • 50GB Daily Ingestion Commitment Tier
  • Pre-purchase Plans with volume discounts
  • Savings of 5–45% depending on tier

For clients scaling their SOC operations, this model makes Sentinel both affordable and predictable.

At eGroup, these savings directly enhance our ThreatDefender offerings, lowering your Sentinel data storage costs while maintaining full data ownership and transparency.

  • Whether you manage your own SOC or partner with an MSSP, understanding these pricing models is key to maximizing ROI in the Microsoft ecosystem.
Data analyst pointing at computer monitor near colleague holding paper with charts at table

Vertical photo about the cybersecurity, protection of the user's private data, files and documents.

ThreatDefender: Accelerate Your Sentinel Journey

As a Microsoft Verified Managed Security Service Provider (MSSP), eGroup’s ThreatDefender solution helps organizations operationalize Sentinel effectively through:

  • Sentinel Optimization Workshops
  • Co-managed and fully managed SOC services
  • Microsoft best practice architecture
  • Rapid enablement of Security Copilot and agentic AI

Whether you’re building your own SOC or partnering for co-management, ThreatDefender ensures you own your data—while extending your security team with Microsoft-certified experts.


Final Thoughts

Agentic AI isn’t replacing your security team, it’s amplifying it.
The evolution of Microsoft Sentinel brings both technical innovation and practical cost optimization, making advanced AI-driven defense more accessible than ever.

If you’re ready to modernize your security operations or need guidance migrating Sentinel to the Defender portal, eGroup can help.

Our ThreatDefender solution delivers 24×7 security built on Microsoft Sentinel at its core.


Team of IT Technicians Collaborating in Office

Secure Your Organization in the Agentic Era

Modernize your Microsoft Sentinel environment with AI-driven visibility, automation, and cost control.

Whether you’re building your own SOC or exploring managed options, our experts can help you stay ahead of evolving threats.

Get in Touch with Us

Connect with an expert to learn what we can do for your business.