Areas of focus to achieve greater Azure operational efficiency

If you’re working with Azure, you’ve probably wondered how to efficiently manage and keep track of all your resources. In this post, I want to share some practical insights and best practices that can help you gain better visibility and control over your Azure environment. This, in turn, will boost operational efficiency for the services you have running.

Working with cloud services brings its own set of challenges. Here are a few common ones:

  • Rapid Data Collection: The continuous flood of data can make it tough to keep up with governance requirements.
  • Constant Evolution of Technology: As new technologies emerge and old ones fade, governance strategies need to be flexible enough to keep up.
  • New Data Sources: Each new data source may come with its own set of policies and procedures, making governance more complex.
  • Internal Misalignment: Differences in priorities or understanding across teams or departments can create friction and slow down effective governance.
  • Changing Enterprise Infrastructure: As your enterprise infrastructure evolves, your governance strategies will need to evolve as well.

By addressing these challenges head-on and implementing the right strategies, you can ensure better management and oversight of your Azure resources.

In the context of Microsoft Azure, these challenges can show up in various ways:

  • Adapting to New Paradigms: Cloud governance requires a major shift in mindset compared to traditional IT governance. During the process of delete and rebuild an entire virtual datacenter, with just a line of code, it forces you to rethink old-school approaches.
  • Policy Integration: The level of integration between on-premises policies and cloud governance depends on your organization’s cloud maturity and the nature of your digital estate in Azure.
  • Effective Use of Tools: Azure offers several powerful tools like Azure Policy, Azure Blueprints, and Microsoft Defender for Cloud to help enforce and automate governance. On the other hand, knowing how to leverage these tools effectively is key to ensuring solid governance practices.

The Pillars of Azure operational efficiency

Maintaining proper visibility and control over your Azure environment is an ongoing journey, and it revolves around several core principles:

  • Performance: This ensures we can spot and fix issues like latency, errors, and bottlenecks as they arise.
  • Security: Helps safeguard cloud resources from cyber threats like malware, ransomware, phishing attacks, and more.
  • Compliance: Assists in adhering to Microsoft Azure regulatory standards and industry best practices.
  • Optimization: Focuses on improving the cost-effectiveness and efficiency of cloud resources.

Additional information:
Azure compliance documentation
Industry solutions with Azure

To address these challenges, organizations can rely on the Microsoft Cloud Adoption Framework for Azure. This framework offers guidance for assessing existing policies, laying the foundation for governance, and iteratively incorporating governance tools.

Additional information:
Cloud Adoption Framework for Azure was covered in previous article (3 parts)

In this article, we’ll dive into three key areas:

  • Sandbox: This involves creating isolated, temporary environments for testing, development, or experimentation. It lets you explore new features, configurations, or services without impacting your production environment or racking up unnecessary costs.
  • Governance: Governance is all about establishing the policies, processes, and tools that define and enforce the rules and standards for your Azure environment. This ensures your resources maintain compliance, security, quality, and consistency.
  • Resource Optimization: This is about making sure you’re using your Azure resources in the most efficient and cost-effective way possible. It helps you reduce waste, lower costs, and boost performance.

Sandbox Azure Environments

If you’re just starting out with Azure or want to explore various Azure services and features without impacting your production or development environments, creating a sandbox environment is a great option.

A sandbox is a separate, controlled space designed for testing and experimentation without impacting other critical environments, such as production, development, or user acceptance testing (UAT). It allows you to run proof of concepts (POCs) using Azure resources in a safe, isolated setting. Each sandbox operates under its own Azure subscription, governed by Azure policies that are applied at the management group level. These policies are inherited from higher levels in the hierarchy, ensuring consistency. Depending on the specific needs, a sandbox can be used by an individual or an entire team.

One of the simplest methods to set up a sandbox environment in Azure is by utilizing the Azure Sandbox service architecture. This setup consists of interconnected cloud computing configurations that help implement commonly used Azure services within a single subscription. You can either deploy all of the available configurations or only select the ones that suit your needs, and they can be tailored to your specific requirements.

High level architecture diagram of deployed services

Additional information:
GitHub repository with deployment scripts (Terraform) and additional instructions can be found here

There are several advantages to using the Azure Sandbox service:

  • You can set up a fully provisioned sandbox environment with just a few clicks.
  • It gives you access to various Azure services and features, such as SQL Server on Azure Virtual Machines, Azure SQL Database, Azure Database for MySQL Flexible Server, Azure Virtual WAN, point-to-site VPN, and more.
  • Cost savings are possible by stopping or de-allocating virtual machines when they aren’t in use, or by omitting optional configurations that you don’t plan on using.
  • The sandbox environment can be integrated with an Azure landing zone, ensuring governance and security best practices are followed.

Just remember, it’s not intended to be used in production. To clarify, there are certain best practices embedded, but it is not optimized for cost or simplicity. You can take it up a nudge, by looking at the Cloud Adoption Framework landing zones construct.

Azure Landing Zone Sandbox environment

High level architecture of the concept is shown on the diagram bellow.

Management Group and Subscription organization

Some of the benefits of using these landing zone sandbox environments are:

  • You have the flexibility to set up several sandboxes, each tailored for various projects and objectives.
  • Governance and security policies can be enforced on these sandboxes at the management group level to ensure compliance and protection.
  • Cost management is straightforward; you can monitor expenses and deactivate sandboxes if budget constraints arise or when they are no longer needed.
  • To maintain separation from your private network, you can restrict network peering and gateway creation, keeping the sandbox environment isolated.
  • For enhanced security, you can activate audit logging within the sandbox to keep track of activities and ensure robust oversight.

Additional information:
Cloud Adoption Framework landing zone sandbox
Deploy Azure landing zones

Governance in Azure Environments

This involves making sure that your cloud resources adhere to your organization’s established standards, policies, and regulations. Therefore, effective governance, enables you to oversee costs, security, performance, and the overall quality of your cloud services. Azure provides various methods for implementing governance, allowing you to choose the approach that best fits your needs and preferences.

Azure Policy

This service lets you create and apply policies to your Azure resources. Policies are essentially rules that dictate which actions are permitted or prohibited for your resources. For instance, you can set policies to enforce naming standards, restrict resource locations, limit available SKU’s, or audit configurations.

You can apply policies at different levels, such as management groups, subscriptions, resource groups, or individual resources. Additionally, policy initiatives allow you to bundle multiple policies for a specific use case or compliance requirement. integrates with other Azure services, such as

Additional information:
Azure Policy
Azure Landing Zone design: Azure Policy (ITuziast article)
Azure Monitor

Azure Blueprints

This service assists you in setting up and deploying compliant environments in Azure. Azure Blueprints consist of a collection of artifacts, including resources, policies, role assignments, and parameters tailored for specific scenarios or objectives.

For instance, you might use blueprints to establish a well-governed environment for a development team or a particular business unit. They help ensure adherence to external standards like ISO-27001 or NIST.

You have the option to create custom blueprints or utilize the built-in ones offered by Microsoft. Additionally, you can publish, update, and assign these blueprints to your Subscriptions or Management Groups.

Microsoft Defender for Cloud

Defender for Cloud serves as a comprehensive security solution for your cloud infrastructure. It encompasses various aspects including identity, data, devices, applications, and infrastructure. This platform helps safeguard your cloud workloads against threats, vulnerabilities, and misconfiguration.

Moreover, it aids in meeting regulatory requirements and adhering to best practices by delivering security recommendations and conducting assessments. Microsoft Defender for Cloud enables you to oversee and protect your Azure resources, as well as manage security across hybrid and multi-cloud environments.

Azure Deployment Environments

This service assists in establishing and overseeing uniform and compliant environments within Azure. Deployment environments consist of groups of subscriptions designed for specific purposes like sandbox, testing, staging, or production. Azure applies governance policies to these subscriptions based on their designated environment type.

High level architecture of the service

Azure Deployment Environments allow platform engineers to implement enterprise-level security policies and offer a selection of pre-configured infrastructure as code (IaC) templates. Developers can use these templates to set up their own environments, ensuring they adhere to compliance and quality standards.

Resource Optimization in Azure Environments

If you’re leveraging Azure to manage your workloads, you might be curious about how to fine-tune your environment for optimal cost, performance, availability, and security. Azure provides a range of tools and services designed to help with these optimization objectives, but figuring out where to begin and what to focus on can be daunting. Keep in mind that that would be a “never ending story” in Your environment. This brings us to the FinOps framework.

FinOps is a strategic framework and cultural approach aimed at optimizing the business value derived from cloud technologies. It emphasizes making data-driven decisions promptly and encourages financial accountability through collaboration between engineering, finance, and business teams.

This discipline merges financial management practices with cloud engineering and operations, providing organizations with clearer insights into their cloud expenses. Rather than solely focusing on cost-cutting, FinOps seeks to enhance revenue and overall business value by managing and allocating cloud resources effectively. It aims to help organizations manage their cloud spending while meeting performance, reliability, and security standards to support their business activities.

Additional information:
Azure FinOps: What it is and Why it matters (ITuziast article)
FinOps documentation

To optimize your Azure environment effectively, consider several strategies:

First, address unused resources by shutting them down or deleting them. This step helps eliminate unnecessary costs and reduces clutter. Utilize Azure Advisor, which offers tailored suggestions for optimizing your environment, to pinpoint idle resources. Subsequently, setting up alerts and budgets in Azure Cost Management and Billing allows you to monitor spending and get notifications if you exceed your budget limits.

Next, focus on right-sizing your resources. This involves adjusting the size or configuration of your resources to better align with their actual usage and performance needs. To clarify, instead of over-provisioning or under-provisioning, resize your VMs to more suitable instance types, adjust the service tier of your databases, or scale your web and function apps. Right-sizing can lead to significant improvements in efficiency and cost savings.

Additionally, consider using reserved instances and spot instances for virtual machines. Reserved instances provide substantial discounts compared to on-demand pricing when you commit to using VM’s for one or three years. They are ideal for predictable workloads. On the other hand, Spot instances provide lower prices for VM’s using unused Azure capacity, but they may face interruptions. These are suitable for flexible tasks like batch processing or testing.

Above all, leverage Azure’s native services and features to further optimize your setup. For example, Azure Hybrid Benefit allows you to use existing Windows Server and SQL Server licenses on Azure VMs, potentially reducing costs. Azure Storage Accounts offer tiered storage options (hot, cool, archive) based on data access frequency. Likewise, tools like Defender for Cloud enhance security by protecting your resources from threats, while Azure Monitor provides valuable insights through metrics, logs, and alerts to keep track of your resource performance.

Additional links

I maintain a selection of blogs, articles, video content, related to Microsoft cloud technologies. It is refresh regularly. If you’re interested, visit and bookmark the page GitHub Repository of Useful Links.

About Dimitar Grozdanov 36 Articles
Engineer. 25+ years “in the field”. Cloud Solution Architect. Trainer, Consultant. Co-founder/Supporter of Tech Communities. Speaker. Blogger. Parent. Passionate about craft beer tasting and hanging out with family and friends.

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