D2 · Architecture and Services

Physical infrastructure and

How Azure builds its datacenters, the real design of AZs, Availability Sets, Dedicated Hosts, and how to design for 99.99%+ SLAs. D2 goes beyond the concepts — here's the real architecture.

Physics of the Azure datacenter

Before understanding AZs and SLAs, you need to understand what Azure physically protects.

Physical infrastructure of an Azure datacenter

Redundant power sources

Electrical power from multiple independent substations. UPS (Uninterruptible Power Supply) for every rack. Diesel generators with fuel for 72h of autonomous operation.

Independent cooling

Separate climate control systems. If one module's cooling fails, the others keep running. PUE efficiency of ~1.12 (vs. 1.5 typical for enterprise).

Redundant fiber network

Multiple fiber optic routes entering the datacenter through different physical conduits. No single point of failure in connectivity.

Multi-layer physical security

Physical perimeter, biometrics (iris, fingerprint), mandatory escorted access, 24/7 cameras, security guards. Only certified personnel with a specific need get in.

Azure vs. typical enterprise datacenter

ScaleMillions of servers globallyTens to hundreds of servers
PUE (energy efficiency)1.12 (world class)1.5–2.0 (typical)
Staff per server1 technician : 25,000 servers1 technician : 100–500 servers
Mean time between failures (MTBF)Hardware designed to fail — redundancy assumedDesigned not to fail — failure = crisis
Annual security investment$4B+ (Microsoft global)Limited budget
CertificationsISO 27001, SOC 1/2/3, PCI-DSS, FedRAMPFew or none

design — the reality

What physically separates AZs

Physical distance

AZs are at least several kilometers apart within the same metropolitan . Enough that a local incident (flood, fire) won't affect all of them.

Independent network

Each AZ has its own fiber entry points, edge switches, and routers. They share no physical network component with the other AZs.

Guaranteed latency

Microsoft guarantees < 2ms one-way latency between any pair of AZs in the same region. This enables synchronous active-active architectures.

Services with AZ support

Not all Azure services support AZs. Three categories:

Zonal

You deploy to a specific AZ (Zone 1, 2, or 3). You control the zone.

Examples: VMs, Managed Disks, Standard IPs

Zone-redundant

Azure automatically deploys across multiple AZs. No zone configuration needed.

Examples: Azure SQL DB, Zone-redundant Storage, App Gateway v2

Non-regional

Global services with no AZ. Always available, no zone association.

Examples: Entra ID, Azure DNS, Azure Front Door

SLA by deployment architecture

Single VM, no redundancy99.9%

Maximum downtime: ~8.7h/year

VM with Premium SSD (Availability Set)99.95%

Maximum downtime: ~4.4h/year

VM with Availability Zones99.99%

Maximum downtime: ~52min/year

Active-active multi-region service99.999%

Maximum downtime: ~5min/year

Availability Sets vs Availability Zones

Both improve VM availability, but they protect against different types of failures. It's one of the most common points of confusion in the AZ-900.

Availability Sets (AS)

Distributes VMs across Fault Domains (distinct physical racks) and Update Domains (groups for planned maintenance) within the same datacenter.

Fault Domains (FD)

Max. 3 FDs per region. Each FD = a separate physical rack with its own power and network. If a rack goes down (power outage) → only VMs in that FD are affected.

Update Domains (UD)

Max. 20 UDs. When Azure performs physical host maintenance, it only restarts one UD at a time. With 2 UDs: while UD1 restarts, UD2 keeps serving.

SLA with AS

99.95% for VMs with Premium SSD in an Availability Set

Availability Zones (AZ)

Distributes VMs across physically separate datacenters (different buildings, different power, different network) within the same metropolitan region.

Protects against

Complete failure of a datacenter: fire, flood, total power outage, massive hardware failure. The other AZ keeps running.

Latency between AZs

< 2ms guaranteed. Enables synchronous replication (data in two AZs = always consistent). The app can run in AZ1 with the DB in AZ1 and AZ2.

SLA with AZs

99.99% for VMs deployed across multiple AZs

CharacteristicAvailability SetsAvailability Zones
Protection scopeWithin the same datacenterAcross distinct datacenters
Protects against rack failure✓ (Fault Domains)✓ (each AZ = a distinct datacenter)
Protects against datacenter failure✗✓
VM SLA99.95%99.99%
GranularityRack / maintenance groupFull datacenter
Extra costNone (same region)Minimal egress between AZs
AvailabilityAll regionsOnly in regions with AZs (~40+)
When to useLegacy apps, regions without AZs, rack granularityRecommended by default when available

Can you combine AS and AZs?

NO. A VM belongs to an Availability Set OR to an Availability Zone — not both. If your region has AZs, use AZs (better protection). If it doesn't have AZs, or for legacy app compatibility, use Availability Sets. Microsoft recommends AZs over AS for new deployments.

Related labD2 · Architecture and services

Deploy a VM with an Availability Zone

Create a virtual machine explicitly choosing an Availability Zone, and understand how this reduces the risk of a datacenter failure.

Tell apart an Availability Zone from an Availability Set
Deploy a VM in a specific zone

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7 min11 steps

Dedicated Hosts and Proximity Placement Groups

Azure Dedicated Hosts

A complete physical server dedicated exclusively to your organization. Only your VMs run on that hardware.

When to use it?

  • Compliance that prohibits shared hardware
  • Regulatory: defense sector, banking in some jurisdictions
  • Licensing: Windows Server / SQL Server with "per physical core" rights

Limitations

  • Price: ~$3–8/hour for a full physical host (not per VM)
  • Fixed capacity: you can't mix VM series on a single host
  • Available only in specific regions

Proximity Placement Groups (PPG)

Groups VMs as physically close together as possible (same datacenter, same rack if possible) to minimize latency between them.

Why does intra-cluster latency matter?

An HPC (High Performance Computing) cluster or a database cluster needs node-to-node communication in microseconds, not milliseconds. Without a PPG, two VMs can end up in different racks of the same AZ → 0.5–2ms latency. With a PPG → <0.1ms.

Use cases

  • Database clusters (SQL AlwaysOn, Oracle RAC)
  • HPC (simulations, distributed ML training)
  • Real-time multiplayer gaming servers
  • Ultra-low-latency financial applications

How to calculate composite

When your architecture has multiple components, the total SLA is the product of the individual SLAs. This is fundamental for design and a frequent AZ-900 exam question.

Formula: composite SLA = SLA₁ × SLA₂ × SLA₃

For components in series (if one fails, the service fails), SLAs are multiplied.

Classic 3-tier web app (in series)

99.99%

×

Azure App Service (Standard)

99.95%

×

Azure SQL Database (General Purpose)

99.99%

=

99.93%

0.9999 × 0.9995 × 0.9999 = 0.9993 ≈ 99.93%

Even though each component has a high SLA, the composite SLA GOES DOWN. This is the cumulative effect.

Web app with redundancy in App Service

Azure Load Balancer

99.99%

×

App Service × 2 AZs (parallel)

99.9999%*

×

Azure SQL Database (Zone Redundant)

99.995%

=

99.985%

0.9999 × 0.999999 × 0.99995 ≈ 99.985%

*App Service SLA with Zone Redundancy. For parallel: 1 - (1-SLA)^n

The cumulative effect — a rule for the exam

More components in series = composite SLA ALWAYS lower than the lowest individual SLA. If someone says "our architecture has a 100% SLA because all the components have 99.99%", they're wrong. There's no such thing as a 100% SLA.

High-availability patterns in Azure

Active-Passive

One active instance handles all the traffic. A passive instance stays on standby, ready to take over if the active one fails.

Advantages

  • +Lower cost (the passive instance can be smaller)
  • +No data consistency issues (only the active instance writes)
  • +Simple to implement

Disadvantages

  • −Failover takes minutes (warmup of the passive instance)
  • −Reduced capacity during failover
  • −Passive instance is wasted if nothing fails

In Azure

, SQL Server AlwaysOn in asynchronous mode, Azure SQL Database Business Critical with geo-replica

Active-Active

Multiple active instances handle traffic simultaneously. If one fails, the others absorb its load.

Advantages

  • +No downtime on failover (milliseconds)
  • +Full capacity as long as at least one instance is healthy
  • +Better resource utilization (no idle instances)

Disadvantages

  • −More complex data consistency (writes on multiple nodes)
  • −Higher cost (all instances are full-size)
  • −Requires stateless architecture or synchronous replication

In Azure

VM Scale Sets with Load Balancer, App Service with multiple instances, Cosmos DB multi-region write

N+1 Redundancy

You have the N instances needed to handle the load + 1 extra instance. If one fails, the remaining N keep handling the full load.

Advantages

  • +Balance between cost and availability
  • +Absorbs the failure of one instance without degradation
  • +Simple to reason about

Disadvantages

  • −If 2 instances fail simultaneously, there's degradation
  • −Doesn't protect against massive failures

In Azure

VM Scale Sets with a minimum of 2 instances, AKS with a minimum of 3 nodes, App Service with 2 instances on Standard+

Related labD3 · Management, security, and compliance

Configure Azure Backup with a Recovery Services vault

Create a Recovery Services vault with geo-redundancy and enable daily backup for a VM.

Understand the role of a Recovery Services vault in a backup strategy
Choose GRS to protect backups against a regional disaster

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