D1 · Identity, Governance & Monitoring

Monitoring Design

In AZ-305 monitoring isn't "what does Azure Monitor do" but how to design the workspace topology, which tool to use for each signal (metrics, logs, traces), and how to balance retention vs cost. The recurring question: centralized or decentralized?

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The Azure monitoring stack

ToolSignalWhen to use it in the design
Azure Monitor MetricsNumeric platform metrics (near real-time)CPU/latency alerts, autoscaling, live dashboards
Azure Monitor Logs (Log Analytics)Structured logs queryable with KQLDeep analysis, correlation, auditing, log alerts
Application InsightsApp telemetry (requests, dependencies, exceptions, traces)APM: app performance and failures, distributed tracing
Activity LogControl-plane operations (who created/deleted what)Change auditing — export to the workspace for retention
Diagnostic SettingsRouter: sends resource logs/metrics to destinationsWorkspace (analysis), Storage (cheap archiving), (external SIEM)
Microsoft SentinelSIEM/SOAR built on Log AnalyticsThreat detection, hunting, automated response
Network WatcherNetwork diagnostics (flow logs, packet capture)Connectivity troubleshooting, NSG flow logs

Mnemonic rule for diagnostic settings

Analyze → Log Analytics workspace. Cheap archiving → Storage Account. Integrate with SIEM/third parties → Event Hubs. A single diagnostic setting can send to several destinations at once.

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design

General recommendation (and the ): one central workspace per region in the Management subscription. Start centralized; split only when there's a real driver.

Centralized workspace (default)

  • • Correlation across workloads with a single KQL query
  • • One retention, and export configuration
  • • Better pricing: commitment tiers on aggregate volume
  • • Sentinel needs the data in its workspace — centralizing makes the SIEM easier

When to split workspaces

  • • Data sovereignty: logs can't leave a region/country (the workspace fixes the data's region)
  • • Radically different retention/pricing requirements per team
  • • Strict access isolation that granular RBAC doesn't solve
  • • Ingestion cost chargeback per team

Access control inside a shared workspace

  • • Resource-context RBAC: users with access to a resource see ONLY that resource's logs — no permissions on the workspace itself. This is what enables sharing a workspace across teams
  • • Table-level RBAC: restrict specific tables (e.g. SecurityEvent for SecOps only)
  • • Workspace access mode: workspace-context (admins/central team) vs resource-context (application teams)
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Application Insights — APM

What it brings to the design

  • • Distributed tracing: follow a request across microservices (Application Map)
  • • Anomaly detection (Smart Detection) and profiler
  • • Availability tests: synthetic tests from global regions (URL ping deprecated → standard tests)
  • • Funnels, user flows and usage telemetry for product
  • • Workspace-based: data lives in Log Analytics (correlated with everything else)

Instrumentation

  • • Auto-instrumentation: no code changes needed (App Service, Functions, AKS with the agent) — first choice when available
  • • SDK / OpenTelemetry: full control, custom telemetry, configurable sampling
  • • Sampling reduces volume/cost while keeping statistical representativeness
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Alerts and action groups

Alert typeSignalWhen to design it
Metric alertNumeric platform metric (CPU, latency, requests)Low latency (~1 min); ideal for autoscaling triggers, performance SLAs
Log alertKQL query over Log AnalyticsComplex conditions (e.g. 5 500-errors in 10 min); 1-5 min latency
Activity log alertControl-plane (ARM) operationAuditing: someone deleted an RG, changed a , deleted a
Smart detection (App Insights)Automatically detected anomaliesNo manual threshold — ML detects degradation, dependency failures, unusual exceptions
Prometheus alerts (AKS)Prometheus metrics from the clusterKubernetes workloads — defined with PromQL rules in Azure Monitor Workspace

Action groups — "who to notify"

An action group is the list of actions to run when an alert fires. Reusable: multiple alert rules can point to the same group.

  • • Email / SMS / Push / Voice — notify people
  • • Webhook / ITSM — integration with ServiceNow, PagerDuty
  • • Automation Runbook — automated remediation (restart a service)
  • • Logic App / Function / Event Hubs — custom workflows
  • • action — scale a VMSS directly

Alert design principles

  • • Alerts at the highest possible scope (subscription or RG) to automatically catch new resources
  • • Auto-resolving alert: metric alerts auto-resolve once the metric returns to a normal threshold
  • • Dimensions in metric alerts: break down by instance, region, response code without multiplying rules
  • • Avoid "alert fatigue": careful thresholds + suppression during maintenance windows
  • • For SRE: define SLOs with Composite SLAs and alert on error budget

Exam signal

"Notify the team when someone deletes a resource group" → activity log alert. "Alert when CPU > 90%" → metric alert. "Automatic ServiceNow ticket when an alert fires" → action group with ITSM connector. "Automatically restart a service when it fails" → action group with an Automation Runbook.

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Retention, archiving and costs

LayerCharacteristicDesign use
Interactive retentionData queryable with KQL at full performance (up to 2 years)Day-to-day operations, alerts, dashboards
Long-term retention (archive)Up to 12 years, cheap, not directly queryable — needs restore or search jobsLong-term regulatory retention compliance
Basic/Auxiliary table plansCheaper ingestion, limited KQL, short retentionHigh-volume, low-value logs (verbose, debug)
Commitment tiersDiscount for committing to a GB/day volumePredictable volumes ≥100 GB/day
Export to StorageDiagnostic settings → storage account with lifecycle to Cool/ArchiveCheaper archiving outside the workspace, immutability
DCR transformationsFilter/transform at ingestion (Data Collection Rules)Drop irrelevant columns/rows before paying for them

The dominant cost is INGESTION

Log Analytics charges mainly by GB ingested. Design levers: filter at the source (DCR transformations), Basic table plans for verbose logs, App Insights sampling, and archive/export for long-term retention. If a scenario asks to "retain audit logs for 7 years at the lowest cost" → archive tier or export to storage with the Archive tier.

Decision table

RequirementDesign
Correlate logs from 50 workloads with one queryCentral workspace (Management subscription)
Germany's logs cannot leave GermanyDedicated workspace in the German region
Each team sees only its own resources' logs in a shared workspaceResource-context RBAC
Trace a request across 10 microservicesApplication Insights (distributed tracing / App Map)
Test website availability from 5 regionsApp Insights availability tests
Retain audit data for 7 years at the lowest costLong-term retention (archive) or export to Storage Archive
Send logs to the company's Splunk SIEMDiagnostic settings → Event Hubs
Reduce the ingestion cost of verbose logsDCR transformations + Basic table plan
Threat detection and hunting over the logsMicrosoft Sentinel on top of the workspace
Notify when CPU exceeds 90% on any VMMetric alert scoped to subscription/RG + email action group
Alert when someone deletes a critical resourceActivity log alert (Delete operation on that resource)
Open a ServiceNow ticket when an alert firesAction group with an ITSM connector
Automatically restart a service on failure detectionAction group → Automation Runbook

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A company with workloads in West Europe designs its monitoring: (1) the SOC needs to correlate security events across all workloads, (2) each application team must see only its own resources' logs, (3) audit logs must be retained for 7 years at the lowest cost. Which design satisfies all of this?

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