PCI-DSS: Custom NGFW

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Problem Statement

To pass PCI-DSS compliance you need Azure Premium Firewall with IDS/IPS subsystem. That will cost you at least $1300 per month.

What is NGFW?

FW - firewall. NGFW - next-generation firewall.

A traditional firewall decides traffic based on IPs, ports, protocols; an NGFW inspects the full application and content inside the traffic, adds IPS, malware detection, and user-identity controls.

CapabilityFWNGFW
Layer 3 IP filteringYesYes
Layer 4 TCP/UDP port filteringYesYes
Layer 7 application awarenessNoYes
Detect “SSH over HTTPS”, “Dropbox”, “Salesforce”, “Zoom”, even on non-standard portsNoYes

A traditional FW only sees Source IP > Destination IP. Port (80, 443, 22...). Protocol (TCP/UDP).

An NGFW sees what application is inside the flow. What user/identity generated it and what content is transferred.

Security functionFWNGFW
Basic stateful inspectionYesYes
Intrusion detection (IDS)NoYes
Intrusion prevention (IPS)NoYes
Protocol anomaly detectionMinimalYes
Malware scanning / sandboxingNoYes
URL/content filteringNo or limitedYes
TLS/SSL decryption and inspectionNoYes

NGFW = firewall + IPS + application control + threat prevention. Traditional FW = simple access control + state tracking.

Identity / user featuresFWNGFW
Policy by user/groupNoYes
Integrate with LDAP/AD/OAuth/IDaaSNoYes
Zero Trust segmentationLimitedStrong

NGFW can block/allow traffic like:

  • Only "Finance" AD group may access internal payment API.
  • Deny "unknown application" traffic regardless of port.
TLS/SSL inspectionFWNGFW
Inspect encrypted payloadNoYes
Enforce policies on decrypted sessionsNoYes

Traditional FW sees TLS as opaque. NGFW decrypts, inspects, re-encrypts and enforces IPS/malware rules.

Threat intelFWNGFW
Block IPs/domains from threat feedsLimitedYes
Constantly updated signaturesNoYes

NGFWs like Palo Alto, Fortinet, Barracuda, Cisco, etc., pull real-time threat intel. NGFW logs are much richer — essential for PCI-DSS, SOC, SIEM, IR.

Traditional firewalls were designed for a world where applications used standard ports, malware was rare, TLS traffic was low, IDS/IPS were separate physical appliances. Today most malicious traffic is encrypted. Applications run on any port. Cloud-native microservices obscure traditional boundaries. Attackers hide inside "allowed" ports like 443. NGFW solves these limitations.

Use a Next-Generation Firewall when:

  • You need PCI-DSS, HIPAA, or regulatory compliance.
  • You want to inspect encrypted traffic.
  • You want IPS/IDS and anti-malware inline.
  • You require fine-grained application control.
  • You have modern workloads (cloud, container, SaaS).

Use a traditional firewall only when:

  • You need basic L3/L4 filtering only.
  • Traffic inspection is not required.
  • Performance/latency must be extremely low.
  • Cost must be minimal.

In cloud environments, NGFW is almost always the correct choice.

Alternative Cloud Firewalls Economics

Let's analyze the costs of switching from Azure Firewall Premium SKU + IDPS to another PAYG solution.

Assumptions:

  • Single NGFW resource, running 24x7 (720 h/month).
  • Traffic to inspect: 5 TB/month (~ 5120 GB).
  • All "Cloud-Delivered Security Services (CDSS)" add-ons enabled:
    • Advanced Threat Prevention
    • Advanced URL Filtering
    • WildFire (malware/sandbox)
    • DNS Security
    • (Optionally) central management — but assume minimal extra cost, or you skip Panorama-style central mgmt for now.
    • All traffic goes through inspection & CDSS, worst-case for cost, but ensures full PCI-DSS security.

The values below are the representative monthly costs we established earlier for a single firewall deployment, running 24x7, inspecting 5 TB/month, configured with PCI-DSS-relevant features (IPS/IDPS, TLS inspection, threat prevention, logging-ready). These are minimal approximate, based on publicly referenced pricing models. Different integrations with Azure Cloud services like Log Analytics Workspace can make this price much higher.

Product / VendorPCI-DSS features includedApprox monthly cost (5 TB/month)
Azure Firewall Premium + IDPSTLS inspection, IDPS, URL filtering, L3–L7 rulesUSD 1,075 / month
Palo Alto Cloud NGFWAdvanced Threat Prevention, IPS, URL filtering, WildFire, TLS inspectionUSD 1,600 / month
Fortinet FortiGate CNFIPS, application control, AV/UTM, TLS inspectionUSD 2,210 / month
Barracuda CloudGen FirewallIPS/IDS, TLS inspection, malware scanning, URL filteringUSD 900–1,000 / month (single VM)

Custom Solution Architecture

Solution components:

  1. L3/L4 stateful firewall
  2. Deep Packet Inspection (DPI)
  3. IPS/IDS
  4. TLS/SSL interception (optional)
  5. URL/content filtering
  6. Application identification / protocol detection
  7. Logging, SIEM integration, dashboards
  8. Routing, NAT, VPN
  9. Optional: malware scanning (proxy-based)
ComponentOpen-source project
Stateful firewallnftables (kernel)
IPS/IDSSuricata
Application-layer detectionnDPI (via nProbe/ntopng)
Web proxy + TLS inspectSquid
URL filteringSquidGuard or Shalla blacklist
Malware scanningClamAV (via ICAP)
DPI engineSuricata (with protocol decoders)
SIEM/loggingELK stack (Elastic, Logstash, Kibana)
VPNWireGuard or strongSwan

November 21, 2025