Preparing for Unified Security Operations in Microsoft Sentinel and Defender XDR

Introduction: A Strategic Shift in Microsoft Security

Microsoft is reshaping its security ecosystem by fully integrating Microsoft Sentinel into the Microsoft Defender portal. Starting July 2026, all Sentinel access will be routed through this unified experience. This consolidation offers significant benefits—from enhanced correlation and advanced threat hunting to a streamlined analyst interface—but it also introduces architectural changes that demand thoughtful planning.

This blog outlines what’s changing, the challenges to anticipate, and how to adapt your security architecture to maximize visibility and detection efficacy.

What’s Changing: A Unified Defender Experience

Microsoft is consolidating Sentinel into the Defender portal, creating a single pane of glass for managing incidents, alerts, and telemetry. Even organizations without Defender XDR licensing will access Sentinel through this portal.

Key Benefits:

• Unified Incident Queue: Alerts from Defender for Endpoint, Identity, Office 365, Cloud Apps (MCAS), and Sentinel are automatically grouped into enriched, correlated incidents.
• Centralized Hunting: Analysts can run Kusto Query Language (KQL) queries across all datasets from one interface, with AI-powered assistance from Security Copilot.
• Streamlined Access: The Azure portal interface for Sentinel will be deprecated by July 2026, making transition planning essential.

Challenges to Anticipate

While the unified portal enhances operational efficiency, it introduces several friction points:

• Playbook Compatibility: Legacy playbooks and alert-triggered automations may not migrate cleanly. Defender’s automation model differs from Azure Logic Apps, requiring reengineering.
• API Shifts: Integration endpoints are moving from Azure-native APIs to Microsoft Graph, impacting custom pipelines and third-party integrations.
• RBAC and Workspace Design: Existing workspace segmentation strategies may hinder correlation and detection logic in the new model.

Rethinking Architecture: A Telemetry-First Strategy

To fully leverage the unified experience, organizations should shift from a collection-centric to a correlation-centric architecture.

Centralize Identity and Device Telemetry

Aggregate all high-value signals—Defender alerts, Entra ID logs, MCAS activity, and Office 365 telemetry—into a single, primary Sentinel workspace. These signals are foundational for AI-driven detection and incident enrichment.

Use Secondary Workspaces Strategically

Store archival, compliance, or regional logs in secondary workspaces. These remain queryable for hunting but don’t dilute the unified incident model.

Preserve Visibility Without Fragmentation

Instead of segmenting workspaces by department, tag users and devices with metadata (e.g., job title, department, UPN domain). Use KQL, Watchlists, and filtered dashboards to scope access and alerts.

Visualize with Power BI

Power BI, with Row-Level Security, enables tailored dashboards for managers, compliance teams, and executives—delivering insights without exposing raw telemetry or requiring Sentinel access.

Identity Signals: Always Central

Identity is the connective tissue of modern threats. Whether it’s phishing, lateral movement, or credential misuse, identity telemetry must remain centralized. Fragmenting this data across workspaces undermines correlation and slows response.

MCAS + Firewall Logs: A Visibility Powerhouse

When combined with firewall and proxy logs, Microsoft Defender for Cloud Apps (MCAS) offers deep visibility into cloud app usage—even outside managed networks.

• MCAS Log Collector: Ingests network telemetry to reveal app behavior by user and device.
• Behavioral Insights: Flags risky SaaS access and supports real-time controls like upload blocking.
• Sentinel Integration: These alerts enrich investigations across identity, endpoint, and cloud layers.

Note: In GCCH or Azure Government environments, native connectors may be unavailable. Use APIs, Logic Apps, or HTTP collectors as workarounds.

Design Principles for Unified Security Operations

Rather than detailing every configuration step, focus on these guiding principles:

• Centralize Correlated Telemetry: Keep high-value signals in one workspace.
• Use Metadata, Not Duplication: Tag users/devices instead of duplicating data streams.
• Leverage Power BI for Business Insights: Deliver role-based dashboards without compromising security architecture.
• Plan for Automation and API Changes: Update playbooks and integrations early.
• Engage Stakeholders Now: With the 2026 deadline approaching, early alignment is critical.

Final Thoughts: Correlation Over Collection

This shift to unified operations in Microsoft Defender and Sentinel is more than a UI update; it’s a strategic opportunity for organizations. Those that prioritize correlation, streamline visibility, and plan for architectural alignment will be best positioned to thrive in this new model.

Start designing today, with correlation as your compass.