A Forrester New Technology Projected Total Economic Impact ™ Study Commissioned By Microsoft, November 2024
In today’s rapidly evolving digital landscape, organizations face an increasing number of more-sophisticated cyberthreats. The need for comprehensive security solutions that detect, respond to, and mitigate these threats is more critical than ever. At the same time, as the complexity of threats grows, there is significant demand for tools that not only enhance threat detection capabilities but also empower security teams through automation, actionable insights, and overall operational efficiency.
Microsoft Security Copilot is an advanced, AI-driven solution designed to augment and automate security operations. It helps organizations respond to threats in real time, reducing risk and improving efficiency. By seamlessly integrating with an organization’s existing security tools, Security Copilot provides actionable insights, automates repetitive tasks, and enables security teams to focus on strategic initiatives.
Microsoft commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Security Copilot. 1 The purpose of this study is to provide readers with a framework to evaluate the potential financial impact of Security Copilot.
To better understand the benefits, costs, and risks associated with this investment, Forrester interviewed four representatives with experience using Security Copilot at their organizations. Forrester also surveyed 307 security operations (SecOps) decision-makers about their use and the projected benefits of Security Copilot. For the purposes of this study, Forrester aggregated the interviewees’ experiences and combined the results into a single composite organization that is a global organization with $1 billion in annual revenue, 10,000 employees, and a 20-person SecOps team.
Before implementing Security Copilot, interviewees noted how their organizations managed a mix of security tools and third-party services that, while partially integrated, did not form a unified system or include extensive automation. This setup led to fragmented processes, slowed response times, and increased reliance on manual efforts, resulting in a reactive, rather than proactive, security program.
After deploying Security Copilot, the interviewees observed significant improvements in their security operations, including a reduction in breach risk due to faster detection and response capabilities, efficiency gains for SecOps personnel, and cost savings from reducing third-party services.
Quantified benefits. Three-year, risk-adjusted present value (PV) quantified benefits for the composite organization include:
Unquantified benefits. Benefits that provide value for the composite organization but are not quantified for this study include:
Costs. Three-year, risk-adjusted PV costs for the composite organization include:
Forrester modeled a range of projected low-, medium-, and high-impact outcomes based on evaluated risk. This range reflects both the variance in impacts observed across interviewed organizations and survey respondents, as well as the potential impact on the composite organization driven by the level of adoption, integration, and breadth of use cases for Security Copilot. This financial analysis projects that the composite organization accrues the following three-year net present value (NPV) for each scenario by enabling Security Copilot:
Projected return on investment (PROI):
Projected benefits PV:
Projected net present value (PNPV):
Total costs PV:
From the information provided in the interviews and survey, Forrester constructed a New Technology: Projected Total Economic Impact™ (New Tech TEI) framework for those organizations considering adopting Security Copilot.
The objective of the framework is to identify the potential cost, benefit, flexibility, and risk factors that affect the investment decision. Forrester took a multistep approach to evaluate the projected impact that Security Copilot can have on an organization.
Interviewed Microsoft stakeholders and Forrester analysts to gather data relative to Security Copilot.
Interviewed four representatives at organizations using Security Copilot in a pilot or beta stage and surveyed 307 respondents from organizations with experience using Security Copilot to obtain data about projected costs, benefits, and risks.
Designed a composite organization based on characteristics of the interviewees’ and survey respondents’ organizations.
Constructed a projected financial model representative of the interviews and survey using the New Tech TEI methodology and risk-adjusted the financial model based on issues and concerns of the interviewees.
Employed four fundamental elements of New Tech TEI in modeling the investment’s potential impact: benefits, costs, flexibility, and risks. Given the increasing sophistication of ROI analyses related to IT investments, Forrester’s TEI methodology provides a complete picture of the total economic impact of purchase decisions. Please see Appendix A for additional information on the TEI methodology.
Readers should be aware of the following:
This study is commissioned by Microsoft and delivered by Forrester Consulting. It is not meant to be used as a competitive analysis.
Forrester makes no assumptions as to the potential ROI that other organizations will receive. Forrester strongly advises that readers use their own estimates within the framework provided in the study to determine the appropriateness of an investment in Security Copilot.
Microsoft reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings and does not accept changes to the study that contradict Forrester’s findings or obscure the meaning of the study.
Microsoft provided the customer names for the interviews but did not participate in the interviews.
Forrester fielded the double-blind survey using a third-party survey partner.
Consulting Team:
Kris Peterson
Before adopting Microsoft Security Copilot, the interviewees’ organizations managed their security operations using a mix of tools from Microsoft and other vendors, as well as other third-party managed services. While these tools provided a certain level of integration, they did not form a completely unified system or offer extensive automation, requiring substantial manual effort and coordination to operate efficiently. Interviewees noted that their organizations faced several common challenges, including:
These challenges underscored the need for a more integrated, automated, and user-friendly security solution that could streamline operations, enhance threat detection and response capabilities, and bridge the skill gaps within security teams.
Based on the interviews and survey, Forrester constructed a TEI framework, a composite company, and an ROI analysis that illustrates the areas financially affected. The composite organization is representative of the four interviewees, and it is used to present the aggregate financial analysis in the next section. The composite organization has the following characteristics:
Description of composite. The composite organization is a global organization with annual revenue of $1 billion, 10,000 employees, and a 20-person SecOps team.
| Projected Benefits | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|
| Total projected benefits (low) | $223,920 | $468,439 | $550,939 | $1,243,298 | $1,004,632 |
| Total projected benefits (mid) | $370,656 | $782,512 | $865,012 | $2,018,179 | $1,633,560 |
| Total projected benefits (high) | $517,392 | $1,096,584 | $1,179,084 | $2,793,061 | $2,262,488 |
Evidence and data. Interviewees and survey respondents reported that Security Copilot substantially improved their organizations’ ability to proactively detect and respond to security threats. By leveraging Security Copilot’s automation and integration capabilities, teams could conduct significantly more threat-hunting activities, access and analyze a broader set of data, and respond to incidents more rapidly. These enhancements led to a noticeable reduction in security breaches and a marked improvement in their overall security posture, with organizations surpassing traditional limitations in their detection and response processes.
In the survey of SecOps decision-makers, respondents saw improvements in:
Base: 276 security operations (SecOps) decision-makers at organizations that use Microsoft Security Copilot
Source: New Technology: The Projected Total Economic Impact of Microsoft Security Copilot, a commissioned study conducted by Forrester Consulting
Modeling and assumptions. Based on the interviews and Forrester’s research, Forrester assumes the following about the composite organization:
Results. This yields a three-year projected PV ranging from $547,000 (low) to $1.0 million (high).
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|
| A1 | Likelihood of experiencing one or more breaches per year | Forrester research | 69% | 69% | 69% |
| A2 | Mean cumulative cost of breaches | Forrester research | $3,196,000 | $3,196,000 | $3,196,000 |
| A3 | Subtotal: Annual risk exposure addressable with Security Copilot | A1*A2 | $2,205,240 | $2,205,240 | $2,205,240 |
| A4 Low | 6.1% | 12.2% | 12.2% | ||
| A4 Mid | Reduced risk of breaches attributed to Security Copilot | Survey | 8.7% | 17.4% | 17.4% |
| A4 High | 11.3% | 22.6% | 22.6% | ||
| At Low | $134,520 | $269,039 | $269,039 | ||
| At Mid | Savings from the reduced risk of security breaches | A3*A4 | $191,856 | $383,712 | $383,712 |
| At High | $249,192 | $498,384 | $498,384 | ||
| Three-year projected total: $672,598 to $1,245,961 | Three-year present value: $546,770 to $1,012,870 | ||||
Evidence and data. Interviewees and survey respondents reported that Security Copilot significantly enhanced the efficiency of their SecOps teams by streamlining workflows and offering automation; it also enabled them to rapidly upskill team members. By automating routine tasks and simplifying complex queries, Security Copilot allowed security analysts to focus on higher-value activities and handle complex tasks more efficiently. This increase in efficiency not only improved productivity but also reduced the need for additional staffing. The tool also empowered junior team members to perform tasks that previously required more-senior intervention, thereby enhancing the overall effectiveness of the team.
Some 71% of survey respondents reported an increase in the productivity of their SecOps team. Average time savings included:
In addition, 62% of survey respondents noted that Security Copilot helped them upskill junior staff. Of these respondents:
Modeling and assumptions. Based on the interviews, Forrester assumes the following for the composite organization:
Results. This yields a three-year projected PV ranging from $372,000 (low) to $993,000 (high).
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| B1 | SecOps FTEs using Security Copilot | Composite | 10 | 15 | 15 | |
| B2 Low | 5% | 10% | 15% | |||
| B2 Mid | Net productivity and efficiency gains from streamlined workflows, automation, and upskilling from Security Copilot | Interviews and survey | 10% | 20% | 25% | |
| B2 High | 15% | 30% | 35% | |||
| B3 | Average fully burdened annual salary for an FTE using Security Copilot | TEI standard | $110,000 | $110,000 | $110,000 | |
| Bt Low | $55,000 | $165,000 | $247,500 | |||
| Bt Mid | Amplified efficiency of SecOps team | B1*B2*B3 | $110,000 | $330,000 | $412,500 | |
| Bt High | $165,000 | $495,000 | $577,500 | |||
| Three-year projected total: $467,500 to $1,237,500 | Three-year present value: $372,314 to $992,975 | |||||
Evidence and data. Interviewees and survey respondents reported significant cost efficiencies from enhancing their internal capabilities with Security Copilot. By reducing their reliance on or eliminating some legacy third-party services, their organizations achieved measurable reductions in spending on outsourced services.
The survey data revealed how Security Copilot enabled SecOps decision-makers to reduce their reliance on managed services.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Results. This yields a three-year projected PV ranging from $86,000 (low) to $257,000 (high).
| Ref. | Metric | Source | Year 1 | Year 2 | Year 3 | |
|---|---|---|---|---|---|---|
| C1Low | $34,400 | $34,400 | $34,400 | |||
| C1Mid | Cost reduction from reduced reliance on or elimination of third-party security services | Survey | $68,800 | $68,800 | $68,800 | |
| C1High | $103,200 | $103,200 | $103,200 | |||
| CtLow | $34,400 | $34,400 | $34,400 | |||
| CtMid | Cost efficiencies from SecOps centralization | C1 | $68,800 | $68,800 | $68,800 | |
| CtHigh | $103,200 | $103,200 | $103,200 | |||
| Three-year projected total: $103,200 to $309,600 | Three-year present value: $85,548 to $256,643 | |||||
Interviewees mentioned the following additional benefits that their organizations experienced but were not able to quantify:
The value of flexibility is unique to each customer. There are multiple scenarios in which a customer might implement Microsoft Security Copilot and later realize additional uses and business opportunities. These scenarios include:
Flexibility would also be quantified when evaluated as part of a specific project (described in more detail in Appendix A ).
| Ref. | Cost | Initial | Year 1 | Year 2 | Year 3 | Total | Present Value |
|---|---|---|---|---|---|---|---|
| Dtr | Annual Security Copilot consumption fees | $0 | $175,200 | $175,200 | $175,200 | $525,600 | $435,696 |
| Etr | Training and learning | $22,260 | $22,260 | $16,695 | $16,695 | $77,910 | $68,837 |
|
Total costs
(risk adjusted) |
$22,260 | $197,460 | $191,895 | $191,895 | $603,510 | $504,533 | |
Evidence and data. Security Copilot operates within an organization’s Azure environment, which enables a smooth deployment with minimal setup requirements. The pricing structure is currently set at $4 per hour for each security compute unit (SCU), allowing organizations to adjust compute power and capacity as needed. This intuitive model enables predicable cost management based on specific usage. Pricing may vary. Contact Microsoft for additional details.
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. No specific risks are noted, as the standard pricing model and deployment setup contribute to predicable costs across organizations.
Results. Forrester applied a 0% risk adjustment, yielding a three-year, risk-adjusted total PV (discounted at 10%) of $436,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| D1 | Security compute units provisioned | Composite | 5 | 5 | 5 | |
| D2 | Security compute unit cost per hour | Composite | $4 | $4 | $4 | |
| Dt | Annual Security Copilot consumption fees | D1*D2*24*365 | $175,200 | $175,200 | $175,200 | |
| Risk adjustment | 0% | |||||
| Dtr | Annual Security Copilot consumption fees (risk-adjusted) | $175,200 | $175,200 | $175,200 | ||
| Three-year total: $525,600 | Three-year present value: $435,696 | |||||
Evidence and data. Interviewees stated that Security Copilot is intuitive and easy to learn, with users quickly becoming proficient due to its natural language interface. Some interviewees indicated that users participated in initial workshops, while others developed their skills through hands-on experience. The director of cyber defense at a manufacturing firm said: “In a couple of days to a week, you should be able to be fairly competent on it because it’s natural language. You just ask it stuff.”
Modeling and assumptions. Based on the interviews, Forrester assumes the following about the composite organization:
Risks. This cost can vary across organizations due to differences in:
Results. To account for these risks, Forrester adjusted this cost upward by 5% yielding a three-year, risk-adjusted total PV (discounted at 10%) of $69,000.
| Ref. | Metric | Source | Initial | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|---|---|
| E1 | Total security operations FTEs using Security Copilot | Composite | 10 | 10 | 15 | 15 |
| E2 | Training and learning time per FTE (hours) | Interviews | 40 | 40 | 20 | 20 |
| E3 | Fully burdened hourly rate for a SecOps FTE | Composite | $53 | $53 | $53 | $53 |
| Et | Training and learning | E1*E2*E3 | $21,200 | $21,200 | $15,900 | $15,900 |
| Risk adjustment | ↑5% | |||||
| Etr | Training and learning (risk-adjusted) | $22,260 | $22,260 | $16,695 | $16,695 | |
| Three-year total: $77,910 | Three-year present value: $68,837 | |||||
The financial results calculated in the Benefits and Costs sections can be used to determine the PROI and projected NPV for the composite organization’s investment. Forrester assumes a yearly discount rate of 10% for this analysis.
These risk-adjusted PROI and projected NPV values are determined by applying risk-adjustment factors to the unadjusted results in each Benefit and Cost section.
| Initial | Year 1 | Year 2 | Year 3 | Total | Present Value | |
|---|---|---|---|---|---|---|
| Total costs | ($22,260) | ($197,460) | ($191,895) | ($191,895) | ($603,510) | ($504,533) |
| Total benefits (low) | $0 | $223,920 | $468,439 | $550,939 | $1,243,298 | $1,004,632 |
| Total benefits (mid) | $0 | $370,656 | $782,512 | $865,012 | $2,018,179 | $1,633,560 |
| Total benefits (high) | $0 | $517,392 | $1,096,584 | $1,179,084 | $2,793,061 | $2,262,488 |
| Net benefits (low) | ($22,260) | $26,460 | $276,544 | $359,044 | $639,788 | $500,099 |
| Net benefits (mid) | ($22,260) | $173,196 | $590,617 | $673,117 | $1,414,669 | $1,129,027 |
| Net benefits (high) | ($22,260) | $319,932 | $904,689 | $987,189 | $2,189,551 | $1,757,955 |
| PROI (low) | 99% | |||||
| PROI (mid) | 224% | |||||
| PROI (high) | 348% | |||||
New Technology: Projected Total Economic Impact (New Tech TEI) is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The New Tech TEI methodology helps companies demonstrate and justify the projected tangible value of IT initiatives to both senior management and other key business stakeholders.
Projected Benefits represent the projected value to be delivered to the business by the product. The New Tech TEI methodology places equal weight on the measure of projected benefits and the measure of projected costs, allowing for a full examination of the effect of the technology on the entire organization.
Projected Costs consider all expenses necessary to deliver the proposed value, or benefits, of the product. The projected cost category within New Tech TEI captures incremental costs over the existing environment for ongoing costs associated with the solution.
Flexibility represents the strategic value that can be obtained for some future additional investment building on top of the initial investment already made. Having the ability to capture that benefit has a PV that can be estimated.
Risks measure the uncertainty of benefit and cost estimates given: 1) the likelihood that estimates will meet original projections and 2) the likelihood that estimates will be tracked over time. TEI risk factors are based on “triangular distribution.”
The initial investment column contains costs incurred at “time 0” or at the beginning of Year 1 that are not discounted. All other cash flows are discounted using the discount rate at the end of the year. PV calculations are calculated for each total cost and benefit estimate. NPV calculations in the summary tables are the sum of the initial investment and the discounted cash flows in each year. Sums and present value calculations of the Total Benefits, Total Costs, and Cash Flow tables may not exactly add up, as some rounding may occur.
| Role | Industry | Region | Annual Revenue | Employees |
Employees In
SecOps Team |
|||
|---|---|---|---|---|---|---|---|---|
| Director of cyber defense | Manufacturing | Global | $57B | 38,000 | 20 | |||
| Chief technology officer | Energy | Europe | $2B | 1,400 | 10 | |||
| Chief information security officer | Insurance | North America | $790M | 3,000 | 4 | |||
| Senior manager of cyber defense | Financial services | APAC | n/a | 1,500 | 23 | |||
Base: 307 security operations (SecOps) decision-makers at organizations that use Microsoft Security Copilot
Note: Percentages do not total 100 because of rounding.
Source: New Technology: The Projected Total Economic Impact of Microsoft Security Copilot, a commissioned study conducted by Forrester Consulting
Base: 307 security operations (SecOps) decision-makers at organizations that use Microsoft Security Copilot
Source: New Technology: The Projected Total Economic Impact of Microsoft Security Copilot, a commissioned study conducted by Forrester Consulting
Base: 307 security operations (SecOps) decision-makers at organizations that use Microsoft Security Copilot
Source: New Technology: The Projected Total Economic Impact of Microsoft Security Copilot, a commissioned study conducted by Forrester Consulting
Base: 307 security operations (SecOps) decision-makers at organizations that use Microsoft Security Copilot
Note: Percentages do not total 100 because of rounding.
Source: New Technology: The Projected Total Economic Impact of Microsoft Security Copilot, a commissioned study conducted by Forrester Consulting
Base: 307 security operations (SecOps) decision-makers at organizations that use Microsoft Security Copilot
Note: Percentages do not total 100 because of rounding.
Source: New Technology: The Projected Total Economic Impact of Microsoft Security Copilot, a commissioned study conducted by Forrester Consulting
Base: 307 security operations (SecOps) decision-makers at organizations that use Microsoft Security Copilot
Source: New Technology: The Projected Total Economic Impact of Microsoft Security Copilot, a commissioned study conducted by Forrester Consulting
Related Forrester Research
Generative AI Use Cases For CISOs , Forrester Research, Inc., June 13, 2024.
Top Recommendations For Your Security Program, 2024 , Forrester Research, Inc., March 4, 2024.
1 Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-making processes and assists vendors in communicating the value proposition of their products and services to clients. The TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior management and other key business stakeholders.
2 Base: 759 security decision-makers. Source: Forrester’s Security Survey, 2024 .
3 Base: 511 security decision-makers. Source: Forrester’s Security Survey, 2024 .
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