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Managed Services on Microsoft Azure

Managed services on Microsoft Azure

Running Azure well is mostly a question of using what is already in the platform properly. Azure Monitor, Azure Policy, Microsoft Defender for Cloud and Azure Cost Management cover most of what an operations team needs, and the usual problem is that they were switched on with default settings and never tuned. We configure them against your actual workloads and then run the environment from the signals they produce.

Why Azure

When this is the right platform.

  • If your organisation already runs Microsoft 365 and Microsoft Entra ID, operations inherit a single identity plane. Conditional access, privileged role management and access reviews then apply to the cloud estate and the productivity estate together.
  • Azure Monitor and Log Analytics consolidate infrastructure metrics, application traces and platform logs into queryable workspaces, so an investigation can start in one place instead of three consoles.
  • Azure Policy expresses guardrails as code at management group scope, and its deployIfNotExists and modify effects can bring a resource back to the required state rather than only reporting that it drifted.
  • Microsoft Defender for Cloud scores posture across subscriptions, and its alerts and exported recommendations land in the same Log Analytics workspace Microsoft Sentinel reads, so posture management and detection share one evidence trail.
  • Teams with Windows Server, SQL Server and Active Directory backgrounds transfer their skills quickly, and Azure Arc extends the same monitoring, policy and update management to servers that have not moved yet.

Where it is less suited

We would rather say this now than after a migration.

  • Azure Monitor and Log Analytics cost is driven by ingestion and retention. Verbose diagnostic settings left at their defaults can make observability one of the larger lines on the invoice, and the cheaper table plans that fix it restrict querying and cross-table joins, so the trade-off has to be made per source rather than globally.
  • Cost attribution across Enterprise Agreement, CSP and pay-as-you-go billing, with reservations and savings plans layered on top, is genuinely fiddly. A clean management group and tagging model is a prerequisite, and retrofitting tags to an established estate takes real effort before the reporting becomes reliable.
  • Azure Policy remediation is not a switch. The deployIfNotExists and modify effects need correctly scoped managed identities and remediation tasks, and partially applied remediation is a common resting state that is easy to mistake for progress.
  • Microsoft Defender for Cloud plans are enabled per resource type and priced separately, and secure score on its own does not tell you whether a finding matters to your business. Triage rules and an agreed severity model are needed before the output becomes useful.
  • Azure Update Manager is free for Azure virtual machines but carries a per-server charge for Arc-connected servers, with a few licensing exemptions. Hybrid estates therefore have a patching cost line that pure-Azure estates do not, and it scales with server count.
  • Alerting coverage is assembled from separate objects: alert rules, action groups and processing rules. There is no single view that proves an alert exists for every workload, so coverage has to be tracked deliberately outside the platform or gaps go unnoticed until an incident finds one.
  • Microsoft renames and repackages products more often than most vendors. Runbooks, dashboards and documentation need a scheduled review, or they quietly describe a console that no longer exists.

Business outcomes

What Azure delivers here.

Observability you can afford
Platform owners get diagnostic coverage on the workloads that matter, with ingestion, table plan and retention chosen source by source. Coverage and its cost are reported together each month, so the trade-off stays a visible decision.Agreed measure: Ingestion volume and retention cost per source, with the coverage they buy, agreed at design and reported monthly.
Guardrails that actually hold
Governance leads see policy compliance by management group instead of a spreadsheet of intentions. Non-compliant resources are remediated or exempted against a named owner and a review date, and the count is tracked month to month.Agreed measure: Compliance against the agreed initiative per management group, with exemptions counted separately and dated.
Posture progress you can show a board
The security lead receives a movement view from Microsoft Defender for Cloud each month: findings closed, findings accepted and findings newly raised, with the business reason recorded for anything accepted.Agreed measure: Findings closed against findings accepted, measured from the recommendation backlog captured at transition.
Spend attributed to the people who caused it
Finance gets Azure Cost Management data mapped to applications and owners through subscription structure and enforced tagging. Reservation and savings plan coverage is reviewed ahead of renewal dates rather than after them.Agreed measure: Proportion of spend attributable to an owning application without manual allocation, plus commitment coverage before each expiry date.
Patch state you can evidence
Update rings and maintenance windows are set per workload in Azure Update Manager, and compliance is reported by workload rather than instance by instance. Exceptions carry an owner and a review date instead of persisting quietly.Agreed measure: Update compliance per workload against the maintenance windows agreed with each owner, with exceptions listed by name.
Restores that have been proven
Continuity owners get results from real Azure Backup restore tests against the recovery objectives agreed per workload, including which workloads met the objective and which would need investment to do so.Agreed measure: Restore tests completed per workload against the recovery objective agreed before build, with the gap recorded each time.

Common client problems

What we usually hear first.

  • We turned on Azure Monitor and now our log bill is one of the biggest lines on the invoice.

    We review diagnostic settings source by source, move high-volume, rarely queried data to cheaper table plans or storage, and set retention per table rather than per workspace. Be aware the cheaper plans trade away query capability, so the choice is made per source with the limitation stated. Coverage that genuinely matters is kept, and we show you what each decision saves.

  • We have policies in Azure Policy but half the estate is non-compliant and nobody chases it.

    We split the policy set into what should deny, what should audit and what should remediate automatically, then retire the rules nobody intends to enforce. A good part of the reported non-compliance usually turns out to be scope and definition artefacts rather than real failures, and separating the two is what makes the number credible. What remains is assigned to an owner with a date instead of sitting on a dashboard.

  • Defender for Cloud gives us a secure score and I have no idea whether it matters.

    Recommendations are translated into a ranked list based on exposure, data sensitivity and how hard each issue would be to exploit in your configuration. Secure score becomes one input to that conversation rather than the target itself, because optimising the score directly rewards closing many trivial findings while a genuinely exposed one stays open.

  • Every subscription was created by a different person and almost nothing is tagged.

    We agree a management group and subscription model, enforce tagging through policy so new resources cannot be created untagged, and backfill existing resources in prioritised batches. The backfill is the slow part and it is worth planning as its own piece of work. Cost reporting then works without a manual reconciliation every month.

  • Our Fabric and Power BI refreshes fail quietly and the business finds out first.

    Pipeline and semantic model refresh outcomes are monitored as first-class alerts with named owners, and failure causes are recorded so repeat offenders get fixed rather than rerun. Where a refresh window is genuinely too tight, we bring the capacity or design change needed to fix it instead of retrying into the morning.

  • We have two Azure engineers already. What would you actually add?

    Breadth and continuity, not seniority. Two engineers cannot hold cloud platform, identity, data pipelines, posture management and cost engineering at a current standard while also delivering projects, and neither can they cover each other's leave indefinitely. Where your team is already strong we scope around them rather than duplicating the work, and if the honest answer is that you need one more hire instead of a service, we will say that.

How we deliver

Our Azure delivery approach.

  1. 01

    Azure estate assessment and transition

    We start from what is actually deployed in your tenant, not from the architecture diagram. The assessment produces a costed transition plan, a remediation list and an explicit acceptance point.

    • Inventory from Resource Graph, handed over. Management groups, subscriptions, resource groups and workloads inventoried using Azure Resource Graph queries we hand over, so the inventory can be refreshed rather than rebuilt.
    • Diagnostic settings and ingestion reviewed. Azure Monitor diagnostic settings, Log Analytics workspace design, table plans, retention and current ingestion volume examined per source.
    • Backup coverage checked per workload. Azure Backup policy coverage tested against each workload to find anything with no backup, no tested restore or a recovery objective the current policy cannot meet.
    • Defender plan coverage by resource type. Microsoft Defender for Cloud plans assessed per resource type, with the existing recommendation and alert backlog recorded as the baseline for later reporting.
    • Cost and commitments baselined. Azure Cost Management data baselined by subscription, tag and service, including reservation and savings plan coverage and the date each commitment expires.
    • Privileged access flagged before handover. Microsoft Entra ID privileged role assignments, standing access and service principal credentials reviewed, with anything unsafe to operate as found written down.
  2. 02

    Operating platform on Azure

    Platform tooling is configured deliberately and kept in code, so the operating model survives reorganisation and staff turnover. Everything we build here is handed over, not held privately.

    • Workspace design against real queries. Log Analytics workspace layout, table plans, retention and data collection rules set against actual query patterns and the cost each source generates.
    • Application Insights on business transactions. Applications instrumented with availability tests and dependency tracking on the transactions the business would notice failing, not only on host metrics.
    • Alert rules with linked runbooks. Azure Monitor alert rules authored with severity, action groups and a linked runbook, using dynamic thresholds where a fixed number produces false alarms.
    • Policy initiatives that remediate. Azure Policy initiatives deployed at management group scope, using modify for tagging and deployIfNotExists for diagnostic settings and baseline configuration.
    • Backup and immutability per workload class. Azure Backup vaults, policies and immutability settings configured per workload class, aligned to the recovery objective agreed with each workload owner.
    • Arc for unmigrated servers. Servers and clusters outside Azure onboarded through Azure Arc so monitoring, policy and update management cover the whole estate rather than only the migrated part.
  3. 03

    Security operations on Azure

    Posture management and detection run from the same data, so what your security team reads each month is evidence rather than assertion. Escalation steps are agreed before they are needed.

    • Recommendations tracked to an end state. Recommendations reviewed on a set cadence and tracked to closed, accepted against a named owner and review date, or scheduled as funded work.
    • Sentinel rules tuned, not accumulated. Microsoft Sentinel analytics rules and watchlists tuned to your environment, with rules that generate alerts nobody investigates retired rather than left running.
    • Entra ID access reviews scheduled. Privileged roles, guest accounts and application registrations reviewed periodically, replacing standing access with eligible assignment where the role allows it.
    • Key Vault expiry watched. Secret, key and certificate expiry monitored in Azure Key Vault, with rotation on a schedule agreed with each application owner rather than at the point of outage.
    • Update and vulnerability state per workload. Update compliance and vulnerability findings tracked workload by workload, with exceptions held against a named owner instead of left implicit.
    • Evidence, never certification. Operational evidence produced to support your alignment to frameworks such as the Essential Eight; assessment and certification remain with an accredited third party.
  4. 04

    Enabling your Azure team

    Tooling is only useful if your people can read it. We hand over the workbooks, queries and runbooks and teach the team to use them, so dependence on us reduces over time.

    • Workbooks and queries in your tenant. Azure Monitor workbooks and saved KQL queries published in your own tenant, so your engineers can answer routine questions without contacting us.
    • Runbooks in your repository. Runbooks and infrastructure code stored in your Azure DevOps or GitHub organisation, updated as part of each change rather than in a separate documentation exercise.
    • Monthly review with both audiences. A service review with the platform owner and business sponsor covering incidents, changes, policy compliance, posture movement and cost.
    • Service desk trained on real alerts. First-line triage taught for the alerts your desk will actually receive, including what to escalate immediately and what simply needs observing.
    • Cost views finance opens themselves. A Cost Management view handed to finance with budgets and anomaly alerts set to thresholds they choose rather than defaults nobody reads.
  5. 05

    The ongoing Azure service

    What runs every month once the environment is under management. Coverage hours, contact channels, escalation steps and reporting cadence are set out in your service description rather than assumed.

    • Workload health and pipeline runs watched. Availability tests, workload health and pipeline runs monitored through Azure Monitor and Application Insights, with alerts acted on under the arrangements in your service description.
    • Incidents coordinated with Microsoft. Support case management under your agreement, stakeholder updates and a written review for significant events, so the same fault does not recur unexamined.
    • Patching through Update Manager. Update rings applied through Azure Update Manager inside your change process, with maintenance windows agreed per workload rather than imposed.
    • Restore tests reported honestly. Azure Backup restore tests run on the agreed schedule, with what each test proved reported alongside any workload it could not cover.
    • Cost reviewed before the renewal date. Azure Cost Management data examined monthly for anomalies and idle resources, with commitment coverage checked ahead of renewal rather than after it.
    • One backlog across all four areas. An improvement backlog spanning policy gaps, posture findings, resilience shortfalls and cost actions, ranked by business value and worked each cycle.

Reference architecture

The Azure operating platform, layer by layer.

How the pieces fit together on Microsoft Azure. Every engagement adapts this, and we will tell you which layers you already have.

  1. 01

    Collect

    Signals gathered per source, with table plan and retention chosen deliberately.

    • Data collection rules
    • Application Insights
    • Activity and resource logs
  2. 02

    Detect

    Alerts with a severity, a named owner and a runbook, or they get deleted.

    • Log Analytics workspace
    • Azure Monitor alert rules
    • Action groups
  3. 03

    Respond

    Routine work automated, risky work routed through your change process.

    • Azure Update Manager
    • Automation runbooks
    • Change approval gate
  4. 04

    Protect

    Posture, detection and tested restore, reviewed on an agreed cycle.

    • Microsoft Defender for Cloud
    • Microsoft Sentinel
    • Azure Backup vaults
  5. 05

    Report

    One pack generated from platform data, not assembled the week it is due.

    • Azure Cost Management
    • Policy compliance state
    • Sponsor report pack

Across every layer

  • Microsoft Entra ID groups for every operational role, never individuals
  • Azure Policy for drift detection and remediation
  • Workbooks, queries and automation held in your tenant, not ours
  • A named human approval before any production change
  • Coverage hours and reporting cadence set in the service description
Almost every estate we inherit has layer 01 left at defaults and layer 03 done by hand, which is why observability becomes one of the largest invoice lines and why patching happens when somebody remembers. Note that nothing above layer 02 works without a named owner recorded against each alert, and that is a service design decision rather than a product feature.

Technology reference

The Microsoft Azure services we build with.

A reference architecture view of the platform services used in this domain, and what each one does in the design.

Monitoring and diagnostics

  • Azure MonitorMetric, log and alert backbone for the estate. We design workspace layout, data collection rules and alert routing, then run the environment from what it reports.
  • Application InsightsApplication-level tracing, dependency mapping and availability tests on the transactions the business would notice failing.
  • Azure ArcExtends monitoring, policy and Azure Update Manager patching to servers and Kubernetes clusters outside Azure, so one operating model covers the whole estate.

Governance, identity and cost

  • Azure PolicyGuardrails as code at management group scope. We use it to enforce tagging, diagnostic settings and baseline configuration, and to remediate drift automatically where that is safe.
  • Azure Cost ManagementSpend attribution by subscription, tag and service, plus budgets, anomaly alerts, FOCUS-format exports and commitment coverage tracked ahead of renewal dates.
  • Microsoft Entra IDThe identity plane the service runs against. We operate access reviews, privileged role governance and service principal credential hygiene here.

Security posture and detection

  • Microsoft Defender for CloudPosture management across subscriptions. We triage its recommendations on a set cadence and track every finding to closed, accepted or scheduled.
  • Microsoft SentinelDetection and investigation over the same Log Analytics data, with analytics rules tuned to your environment and escalation agreed in advance.
  • Azure Key VaultCentral store for secrets, keys and certificates. We monitor expiry and run rotation on a schedule agreed with each application owner.

Backup and resilience

  • Azure BackupBackup policy, vault configuration and immutability per workload class, plus the scheduled restore tests that prove the policy actually works.
  • Azure Site RecoveryReplication and failover for workloads whose recovery objective cannot be met by backup alone, exercised through planned failover tests.

Data and AI operations

  • Microsoft FabricWhere analytics workloads run. We monitor capacity use, refresh outcomes and queue behaviour so reporting arrives on time.
  • Fabric Data FactoryPipeline orchestration we operate day to day, covering run monitoring, retry behaviour and a named owner per pipeline.
  • Microsoft FoundryWhere deployed AI applications are monitored. We track usage, latency, cost per workload and response quality against an evaluation set your experts review.
  • Microsoft PurviewCatalogue and sensitivity labelling we keep current, so classification does not decay in the months after the initial rollout.

Product names and icons are trademarks of Microsoft and Amazon Web Services, reproduced unmodified from their official architecture icon libraries to identify the technologies used in these architectures. Their presence does not indicate partnership, certification or endorsement by either vendor.

Azure questions

What people ask about doing this on Azure.

Cost, lock-in and the parts that go wrong, answered before you have to ask twice.

  • Why is our Log Analytics bill higher than the workloads it monitors?

    Because diagnostic settings default to verbose and nobody revisits them, and because ingestion is charged per gigabyte with retention on top. The usual profile is a handful of chatty sources, often firewall, network and application platform logs, producing most of the volume and almost none of the queries. We work source by source, move the high-volume low-value data to a cheaper table plan or to storage, and set retention by table rather than by workspace. The honest trade-off is that cheaper plans restrict querying, so we make the choice per source with the limitation written down.

  • What access do you need in our Azure tenant?

    Less than most people expect, and it should be scoped where it can be. Day-to-day operations need read across the estate plus write on the specific resource types we are accountable for, granted through Microsoft Entra ID groups and, where the role allows it, time-bound elevation rather than standing access. We do not want permanent Owner on your subscriptions. Break-glass credentials stay with you, and every action we take is visible in your own activity log, which is the point: you should be able to audit us without asking us.

  • Is Microsoft Defender for Cloud enough, or do we need Microsoft Sentinel too?

    They answer different questions. Defender for Cloud tells you your configuration is weak; Sentinel tells you something is happening right now. Most mid-market estates get more value from Defender for Cloud properly tuned than from Sentinel deployed and unwatched, because detection tooling without someone to act on it produces cost and a false sense of coverage. The question we ask first is who investigates an alert, and if the answer is nobody yet, we would rather fix posture and central logging first and revisit detection when there is a plan for the response.

  • How is this different from Microsoft support?

    Microsoft support fixes Microsoft's product. It does not know your architecture, will not tell you a design is fragile, and does not raise the ticket for you when something breaks at your end. Our work is the layer above: deciding what to monitor, tuning alerts so they mean something, controlling drift and cost, and managing the support case under your own agreement when the fault genuinely sits with the platform. You need both, and a support agreement is not a substitute for someone operating the estate.

  • Are we locked into your tooling if we sign up?

    No, and the design decision that prevents it is that we build in your tenant using platform-native services. Workbooks, KQL queries, alert rules, policy initiatives, automation and runbooks all sit in your subscriptions and your repository under source control. If you leave, you keep the operating platform and lose only us. What does create genuine switching cost is the accumulated tuning: the thresholds, suppressions and exceptions that took months to get right, which is why we document the reasoning rather than just the configuration.

  • Can you manage an Azure estate that was built through the portal with no code?

    Yes, and it is what we usually find. The constraint worth knowing early is that a portal-built environment is harder to bring under infrastructure as code than it looks, so we do not promise to convert the whole estate. What we do is bring the operating layer under code first, which is the part that pays off quickly: policy, diagnostic settings, alerting and automation. The application resources themselves get imported or rebuilt selectively, prioritised by which ones actually change often enough to justify the work.

Related industries

Where this work has the most leverage.

  • Professional Services

    Governed enterprise search, document intelligence and secure copilots that respect matter confidentiality and conflict boundaries.

  • Manufacturing and Distribution

    Demand and inventory intelligence, production analytics and supplier automation built on data your planners already trust.

  • Construction and Property

    Tender intelligence, addenda tracking and project reporting that keep estimators and contract administrators ahead of the documents instead of buried in them.

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