Microsoft Defender for Cloud: Protecting Your Australian SMB's Azure Environment
Australian SMBs are migrating to Azure in record numbers, drawn by Microsoft’s local data centres, familiar tooling, and integration with Microsoft 365. But the shared responsibility model means that while Microsoft secures the cloud infrastructure, you’re responsible for securing what you put in it. That’s where Microsoft Defender for Cloud comes in.
Formerly known as Azure Security Center, Microsoft Defender for Cloud has evolved into a comprehensive security posture management platform that helps you identify vulnerabilities, detect threats, and maintain compliance—without needing a dedicated security team. At CloudGeeks, we’ve helped numerous Australian businesses configure Defender for Cloud properly. Here’s what you need to know.
Understanding Microsoft Defender for Cloud
What It Actually Does
Microsoft Defender for Cloud provides three core capabilities:
Security Posture Management (CSPM) Continuously assesses your Azure environment against security best practices. Think of it as a security consultant who never sleeps, constantly checking your configuration against hundreds of security recommendations.
Cloud Workload Protection (CWP) Active protection for your Azure resources—virtual machines, databases, containers, and more. Detects threats in real-time and provides automated remediation options.
Compliance Assessment Maps your security posture against regulatory frameworks including the Australian Essential Eight, ISO 27001, and the NIST Cybersecurity Framework. Essential for businesses with compliance obligations.
How It Works
Defender for Cloud operates through several mechanisms:
- Azure Policy Integration: Evaluates resources against security policies
- Log Analytics: Collects and analyses security data from your resources
- Threat Intelligence: Uses Microsoft’s global threat intelligence to identify attacks
- Machine Learning: Detects anomalous behaviour that might indicate compromise
- Integration with Defender Products: Coordinates with Defender for Endpoint, Identity, and other Microsoft security tools
Pricing Tiers for Australian SMBs
Free Tier (Foundational CSPM) Included with every Azure subscription:
- Basic security recommendations
- Secure Score
- Asset inventory
- Limited compliance assessments
Defender Plans (Enhanced Protection) Per-resource pricing for advanced features:
| Plan | Approximate Cost (AUD) | Protection |
|---|---|---|
| Defender for Servers | $22-35/server/month | VM protection, vulnerability assessment |
| Defender for App Service | $22/app/month | Web app protection |
| Defender for Databases | $22/instance/month | SQL, PostgreSQL, MySQL |
| Defender for Storage | $0.15/10,000 transactions | Blob/file malware detection |
| Defender for Key Vault | $0.03/10,000 transactions | Secret access protection |
| Defender for Containers | $11/vCore/month | Container security |
For a typical Australian SMB with 5-10 servers and a few databases, expect $200-400 AUD/month for comprehensive protection.
Getting Started: Implementation Guide
Phase 1: Assessment and Planning (1 week)
Enable the Free Tier First
- Navigate to Microsoft Defender for Cloud in the Azure portal
- Review your current Secure Score
- Examine the security recommendations
- Identify critical findings
Understand Your Current State Before enabling paid features, assess what you’re protecting:
| Resource Type | Count | Business Criticality | Data Sensitivity |
|---|---|---|---|
| Virtual Machines | 8 | High | Customer data |
| SQL Databases | 3 | High | Financial data |
| Storage Accounts | 5 | Medium | Documents |
| App Services | 2 | High | Public-facing |
| Key Vaults | 1 | Critical | Secrets/keys |
Prioritise Defender Plans Not every resource needs the same protection. Prioritise based on:
- Business criticality (what can’t go down?)
- Data sensitivity (what would hurt most if breached?)
- Exposure (what’s internet-facing?)
- Compliance requirements (what’s mandated?)
Phase 2: Core Configuration (1-2 weeks)
Enable Defender Plans for Critical Resources Start with your highest-risk resources:
For Virtual Machines (Defender for Servers)
- Go to Defender for Cloud > Environment settings
- Select your subscription
- Enable Defender for Servers (Plan 2 recommended)
- Configure Log Analytics workspace (use existing or create new)
- Enable vulnerability assessment (Qualys or Microsoft)
For Databases (Defender for SQL)
- Enable Defender for Azure SQL (or open-source databases if applicable)
- Configure Advanced Threat Protection
- Enable vulnerability assessments
- Set up alerts for suspicious activities
For Storage
- Enable Defender for Storage
- Configure malware scanning for blobs
- Set up activity monitoring
- Review access patterns
Configure Security Contacts Ensure alerts reach the right people:
- Go to Defender for Cloud > Environment settings > Email notifications
- Add security contact email addresses
- Configure notification severity threshold
- Enable notifications for high-severity alerts
Set Up Alert Integration Connect Defender alerts to your monitoring:
- Microsoft Teams channel for immediate visibility
- Email distribution for broader awareness
- Integration with existing SIEM if applicable
Phase 3: Remediation Priority (2-4 weeks)
Understanding Secure Score Secure Score measures your security posture as a percentage. Focus on improvements that:
- Have the highest point impact
- Address the highest-severity recommendations
- Apply to the most critical resources
Common High-Impact Recommendations for SMBs
Identity and Access
- Enable MFA for all accounts with Azure permissions
- Remove deprecated accounts
- Use managed identities instead of credentials
- Implement just-in-time VM access
Network Security
- Restrict SSH/RDP access (use just-in-time or bastion)
- Enable NSG flow logs
- Close unnecessary open ports
- Enable DDoS protection for public IPs
Data Protection
- Enable encryption at rest (usually default)
- Enable encryption in transit (TLS 1.2+)
- Configure backup for critical resources
- Enable soft delete for Key Vault
Workload Protection
- Install endpoint protection on VMs
- Enable vulnerability assessment
- Apply system updates promptly
- Configure adaptive application controls
Phase 4: Compliance Configuration (1-2 weeks)
Essential Eight Alignment For Australian businesses, map to the Essential Eight:
| Essential Eight Control | Defender for Cloud Capability |
|---|---|
| Application Control | Adaptive application controls |
| Patch Applications | Vulnerability assessment, update recommendations |
| Configure MS Office Macros | Endpoint protection recommendations |
| User Application Hardening | Browser/email client recommendations |
| Restrict Admin Privileges | RBAC recommendations, PIM integration |
| Patch Operating Systems | Update management recommendations |
| Multi-Factor Authentication | MFA recommendations, Entra ID integration |
| Regular Backups | Backup recommendations, Azure Backup integration |
Adding Compliance Standards
- Go to Defender for Cloud > Regulatory compliance
- Click “Manage compliance policies”
- Add relevant standards (Essential Eight, ISO 27001, etc.)
- Review compliance dashboard regularly
Generating Compliance Reports For audits and management:
- Navigate to Regulatory compliance dashboard
- Select the relevant standard
- Export to PDF or CSV
- Use for board reporting or audit evidence
Australian-Specific Considerations
Data Residency
Australian Data Centre Locations Azure operates data centres in:
- Australia East (Sydney)
- Australia Southeast (Melbourne)
- Australia Central (Canberra, government)
Configure Defender for Cloud to store security data in Australia:
- Create Log Analytics workspace in Australian region
- Configure Defender plans to use Australian workspace
- Verify data residency settings for compliance
Privacy Act Compliance Defender for Cloud supports Privacy Act 1988 requirements:
- Data breach detection capabilities
- Access logging and monitoring
- Personal information protection recommendations
- Notifiable data breach alerting
State and Federal Government Considerations
For businesses working with government:
- IRAP assessment relevance (Defender for Cloud is IRAP assessed)
- PSPF alignment capabilities
- ISM control mapping
- Sovereign cloud considerations
Local Support and Expertise
Microsoft’s Australian presence includes:
- Local support teams for security incidents
- Australian-based enterprise support
- Partner ecosystem for implementation assistance
Day-to-Day Operations
Security Monitoring Routine
Daily Tasks (15-30 minutes)
- Review high-severity alerts
- Check for critical recommendations
- Monitor Secure Score trends
- Verify no active incidents
Weekly Tasks (1-2 hours)
- Review medium-severity alerts
- Progress on remediation items
- Check compliance dashboard
- Review access logs for anomalies
Monthly Tasks (2-4 hours)
- Comprehensive Secure Score review
- Compliance report generation
- Security policy updates
- Stakeholder reporting
Alert Management Best Practices
Prioritisation Framework Not all alerts require immediate action:
| Severity | Response Time | Action |
|---|---|---|
| Critical | Immediate | Stop what you’re doing, investigate now |
| High | Within 4 hours | Prioritise above routine work |
| Medium | Within 24 hours | Schedule for investigation |
| Low | Within 1 week | Address during maintenance windows |
Common Alert Types and Responses
“Suspicious authentication activity”
- Identify the affected account
- Check if activity is legitimate (new location, new device?)
- If suspicious, reset password immediately
- Enable MFA if not already active
- Review account permissions
“Potential SQL injection attempt”
- Review the source IP and request details
- Check if attack succeeded (usually not)
- Verify WAF rules are in place
- Consider blocking source IP
- Review application code for vulnerabilities
“Unusual storage account access”
- Identify what was accessed
- Verify if access was authorised
- Check for data exfiltration
- Review storage account permissions
- Enable additional logging if needed
Integration with Existing Tools
Microsoft 365 Defender Integration If you’re using Microsoft 365:
- Enable unified security across cloud and endpoint
- Correlate Azure alerts with email/identity threats
- Use Microsoft 365 Defender portal for unified view
Sentinel Integration (for larger SMBs) Microsoft Sentinel provides SIEM capabilities:
- Aggregate security data from multiple sources
- Advanced threat hunting
- Automated response playbooks
- Consider if security needs grow beyond Defender basics
Cost Management
Optimising Defender Costs
Right-Size Coverage Not every resource needs every feature:
- Development/test environments may not need full protection
- Non-critical resources can use basic coverage
- Scale protection with resource criticality
Use Defender for Servers Plan Selection
- Plan 1: Basic protection for lower-risk servers
- Plan 2: Full protection for production and critical systems
Monitor Usage Some Defender plans charge per transaction:
- Review storage transaction volumes
- Optimise Key Vault access patterns
- Consider which resources generate most cost
Budget Allocation Guidance
For a typical Australian SMB (50-100 employees):
| Security Component | Monthly Budget (AUD) |
|---|---|
| Defender for Servers (10 servers) | $250-350 |
| Defender for Databases (3 instances) | $66 |
| Defender for Storage | $20-50 |
| Defender for Key Vault | $10-20 |
| Total | $350-500 |
This investment provides protection that would cost significantly more through third-party tools or managed services.
When to Get Help
DIY vs. Professional Assistance
You Can Handle Internally
- Basic Defender enablement
- Routine alert monitoring
- Simple recommendation remediation
- Standard compliance reporting
Consider Professional Help For
- Initial architecture and configuration
- Complex compliance requirements (government, healthcare)
- Incident response and forensics
- Integration with existing security infrastructure
- Custom policy development
At CloudGeeks, we help Australian SMBs implement and optimise Microsoft Defender for Cloud. Whether you need assistance with initial setup, compliance configuration, or ongoing security management, we can help you protect your Azure investment.
Cloud security isn’t optional—it’s fundamental to operating in 2026. Microsoft Defender for Cloud makes enterprise-grade security accessible for SMBs. The question isn’t whether you can afford to implement it; it’s whether you can afford the consequences of not doing so.