Azure Fundamental – Azure Resources (Part-4)

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Azure Resources

Azure resources are the fundamental building blocks of your cloud infrastructure in Microsoft Azure. They include services such as virtual machines, databases, storage accounts, and more. Each resource is a manageable item in Azure, and they are provisioned and managed individually.

Examples of Azure Resources:

  • Virtual Machines (VMs)
  • Azure SQL Databases
  • Storage Accounts
  • Azure Functions
  • Virtual Networks (VNets)
  • Azure Kubernetes Service (AKS)

Resource Groups in Azure

A Resource Group in Azure is a logical container for resources that share the same lifecycle, permissions, and policies. It helps you organize and manage related Azure resources efficiently. Resources within a group can be deployed, updated, and deleted together as a single management unit.

Key Points about Resource Groups:

  • Lifecycle Management: Resources within a group can be managed collectively, making it easy to handle deployments, updates, and deletions.
  • Resource Organization: Grouping resources based on projects, environments, or applications helps keep your Azure environment well-organized.
  • Role-Based Access Control (RBAC): Permissions and access control are applied at the resource group level, allowing you to manage who can access and modify resources within a group.

The Benefits of Azure Resource Groups

Azure Resource Groups are logical containers in Azure that hold related resources for an Azure solution. They offer several advantages that enhance the management, organization, and deployment of Azure resources.

1. Lifecycle Management


  • Resources within a resource group share the same lifecycle. This means you can deploy, update, and delete all the resources in a resource group together, which simplifies management tasks.


  • If you have an application that consists of a virtual machine (VM), a database, and a storage account, you can group these resources into a single resource group. When you need to update or delete the application, you can do so for all related resources in one operation.

2. Resource Organization


  • Resource groups help you organize resources based on their purpose, environment (development, testing, production), or application. This makes it easier to manage and locate resources.


  • You can create separate resource groups for different projects or environments. For instance, ResourceGroup_ProjectA_Dev, ResourceGroup_ProjectA_Prod, ResourceGroup_ProjectB_Test, etc.

3. Role-Based Access Control (RBAC)


  • You can apply RBAC at the resource group level to control access to all resources within the group. This simplifies security management by allowing you to define who can access and manage the resources based on roles.


  • If you have a team of developers working on an application, you can grant them contributor access to the resource group that contains all the application resources. This ensures they have the necessary permissions without giving them access to other resources.

4. Cost Management and Optimization


  • By grouping related resources together, you can more easily track and manage costs. Azure provides cost management tools that allow you to see the cost associated with each resource group.


  • You can create budgets and alerts for specific resource groups to monitor spending and ensure you stay within budget. This is particularly useful for managing costs across different projects or departments.

5. Deployment Consistency with ARM Templates


  • Resource groups work seamlessly with Azure Resource Manager (ARM) templates, which allow you to deploy and manage infrastructure as code. This ensures consistent and repeatable deployments.


  • You can define an ARM template that describes all the resources needed for an application and deploy it to a resource group. This ensures that the same configuration is deployed every time.

6. Tagging for Categorization


  • You can apply tags to resource groups and the resources within them for better categorization and management. Tags are key-value pairs that provide additional metadata for your resources.


  • You can use tags to classify resources by department, cost center, environment, or project. For example, {"Department": "Finance", "Environment": "Production"}.

7. Simplified Automation and Scripting


  • Automating tasks becomes easier when resources are grouped logically. You can write scripts and automation workflows that target specific resource groups.


  • You can create PowerShell scripts or Azure CLI commands that automate backups, scaling, or other maintenance tasks for all resources within a resource group.

Summary Diagram

Here’s a simplified diagram showing the key benefits of using Azure Resource Groups:

|                Azure Resource Group               |
|                | Lifecycle Management              |
|  +----------+  | - Manage resource lifecycles       |
|  | Resource |  +-----------------------------------+
|  | Group A  |  | Resource Organization              |
|  +----------+  | - Organize resources by project    |
|                |   or environment                   |
|                +-----------------------------------+
|                | Role-Based Access Control (RBAC)   |
|                | - Define access control at group   |
|                |   level                            |
|                +-----------------------------------+
|                | Cost Management                    |
|                | - Track and manage costs           |
|                | - Set budgets and alerts           |
|                +-----------------------------------+
|                | Deployment Consistency             |
|                | - Use ARM templates                |
|                | - Ensure repeatable deployments    |
|                +-----------------------------------+
|                | Tagging                            |
|                | - Apply metadata to resources      |
|                | - Categorize by department, project|
|                +-----------------------------------+
|                | Automation and Scripting           |
|                | - Simplify automation workflows    |

Detailed Explanation

  1. Lifecycle Management: Simplifies collective management of related resources.
  2. Resource Organization: Keeps your Azure environment well-organized by grouping related resources.
  3. RBAC: Enhances security by controlling access at the resource group level.
  4. Cost Management: Facilitates monitoring and controlling expenses associated with cloud resources.
  5. Deployment Consistency: Ensures that resources are consistently deployed using ARM templates.
  6. Tagging: Helps in categorizing and managing resources more effectively.
  7. Automation and Scripting: Eases the process of automating tasks for all resources within a group.

Azure Resource Manager (ARM) Overview

Azure Resource Manager (ARM) is the deployment and management service for Azure. It provides a consistent management layer that enables you to deploy resources with declarative templates. ARM templates describe the resources you need and their configurations, allowing you to deploy and update resources in a predictable manner.

Key Features of Azure Resource Manager:

  • Template-Based Deployment: ARM uses JSON templates to define the infrastructure and configuration of your Azure resources. This enables repeatable and consistent deployments.
  • Dependency Management: ARM automatically handles dependencies between resources, ensuring they are deployed in the correct order.
  • Rollback and Roll-forward: In case of deployment failures, ARM can automatically roll back changes to maintain the desired state, or roll forward to the last known good state.
  • Tagging and Categorization: You can use tags to label and categorize resources, making it easier to manage and organize your Azure environment.

Diagram: Azure Resources, Resource Groups, and ARM

Here’s a simplified diagram to illustrate the relationship between Azure resources, resource groups, and ARM:

|        Azure Subscription       |
|                                 |
| +-----------------------------+ |
| |        Resource Group       | |
| |-----------------------------| |
| | +-----------+ +-----------+ | |
| | |  Resource | |  Resource | | |
| | |    VM     | |   SQL DB  | | |
| | +-----------+ +-----------+ | |
| +-----------------------------+ |
|                                 |
| +-----------------------------+ |
| |        Resource Group       | |
| |-----------------------------| |
| | +-----------+ +-----------+ | |
| | |  Resource | |  Resource | | |
| | |  Storage  | |   VNet    | | |
| | |  Account  | |           | | |
| | +-----------+ +-----------+ | |
| +-----------------------------+ |
|                                 |

|     Azure Resource Manager      |
|   Template-Based Deployment     |
|    Dependency Management        |
|  Rollback and Roll-forward      |
| Tagging and Categorization       |

Understanding the Components

  1. Azure Subscription: The top-level container for all your Azure resources. It holds resource groups and individual resources.
  2. Resource Group: A container within the subscription that logically groups related resources. Each resource group can contain multiple resources.
  3. Resources: Individual Azure services like VMs, databases, storage accounts, etc., that are deployed and managed within resource groups.
  4. Azure Resource Manager (ARM): The underlying service that provides the management layer for deploying, managing, and organizing Azure resources using templates.

Key Features of Azure ARM:

  1. Template-Based Deployment: Define the infrastructure and configuration in a JSON or Bicep template.
  2. Resource Grouping: Organize resources into groups for easier management.
  3. Dependency Management: Ensure resources are deployed in the correct order based on dependencies.
  4. Consistency: Apply configurations consistently across multiple environments.
  5. Access Control: Use Role-Based Access Control (RBAC) to manage who can perform actions on resources.
  6. Tagging: Apply tags to resources for better organization and management.
  7. Policy Management: Enforce organizational standards and compliance using policies.

Simplified Explanation with Examples:

Example 1: Basic ARM Template to Deploy a Virtual Machine

Let’s say you want to deploy a Virtual Machine (VM) in Azure. With ARM, you can create a JSON template that defines the VM and its configuration.

Template Example: vm-template.json (will explain ARM in more detail in future blog)

  "$schema": "",
  "contentVersion": "",
  "resources": [
      "type": "Microsoft.Compute/virtualMachines",
      "apiVersion": "2021-03-01",
      "name": "myVM",
      "location": "[resourceGroup().location]",
      "properties": {
        "hardwareProfile": {
          "vmSize": "Standard_DS1_v2"
        "osProfile": {
          "computerName": "myVM",
          "adminUsername": "azureuser",
          "adminPassword": "Password123!"
        "storageProfile": {
          "imageReference": {
            "publisher": "MicrosoftWindowsServer",
            "offer": "WindowsServer",
            "sku": "2019-Datacenter",
            "version": "latest"
          "osDisk": {
            "createOption": "FromImage"
        "networkProfile": {
          "networkInterfaces": [
              "id": "[resourceId('Microsoft.Network/networkInterfaces', 'myNIC')]"

Steps to Deploy the Template:

Create a Resource Group:

    az group create --name myResourceGroup --location eastus

    Deploy the Template:

    az deployment group create --resource-group myResourceGroup --template-file vm-template.json

    This will create a VM named myVM in the myResourceGroup resource group with the specified configuration.

    Flow of Creating a Virtual Machine in Azure

    User Request

    • Step: The user initiates a request to create a VM.
    • Method: This request can be made through different interfaces:
      • Azure Portal: A graphical web interface.
      • Azure CLI: Command-line interface.
      • Azure PowerShell: Scripting language interface.
      • API: Programmatic access using REST API.

    How ARM interact if creating Azure resource manually?

    Azure Resource Manager (ARM) through various tools, but you perform each step individually using the Azure Portal, Azure CLI, or PowerShell. Here’s a detailed explanation of the manual creation process and how it interacts with ARM.

    Manual Creation of a Virtual Machine in Azure

    1. User Accesses the Azure Portal

    • Step: The user logs into the Azure Portal.
    • Tool: Web-based Azure Portal (

    2. Navigate to the Virtual Machine Creation

    • Step: The user navigates to the “Create a resource” section and selects “Virtual Machine.”
    • Explanation: This action opens the VM creation wizard in the Azure Portal.

    3. Configure Basic Settings

    • Step: The user provides basic information:
      • Resource Group: Selects or creates a new resource group.
      • VM Name: Specifies the name of the VM.
      • Region: Chooses the region where the VM will be deployed.
      • Image: Selects the operating system image (e.g., Windows Server, Ubuntu).
      • Size: Selects the VM size (e.g., Standard_DS1_v2).

    4. Configure Administrator Account

    • Step: The user configures the administrator account:
      • Username: Specifies the admin username.
      • Password: Sets the admin password or SSH public key.

    5. Configure Networking

    • Step: The user configures networking settings:
      • Virtual Network: Selects an existing virtual network or creates a new one.
      • Subnet: Selects a subnet within the virtual network.
      • Public IP: Configures a public IP address if needed.
      • Network Security Group (NSG): Configures security rules for the VM.

    6. Configure Disks

    • Step: The user configures storage options:
      • OS Disk: Chooses the type of disk (Standard HDD, Standard SSD, Premium SSD).
      • Data Disks: Adds additional data disks if needed.

    7. Configure Management and Advanced Settings

    • Step: The user configures additional management and advanced settings:
      • Monitoring: Enables or disables monitoring and diagnostics.
      • Extensions: Adds any VM extensions (e.g., antivirus, backup).
      • Tags: Applies tags for resource categorization.

    8. Review and Create

    • Step: The user reviews the configuration and clicks “Create.”
    • Explanation: This submits the deployment request to ARM.

    Interaction with Azure Resource Manager (ARM)

    During the manual creation process, each step performed by the user in the Azure Portal translates into a series of operations handled by ARM. Here’s how ARM processes these operations:

    Submission to ARM

    • Step: When the user clicks “Create,” the configuration details are submitted to ARM.
    • Explanation: ARM receives the deployment request and starts processing it.

    Validation by ARM

    • Step: ARM validates the request.
    • Explanation: ARM checks for:
      • Syntax and Parameters: Ensures the configuration is correct.
      • Permissions: Verifies that the user has the required permissions.
      • Quotas: Confirms that the deployment complies with subscription quotas and limits.

    Deployment Execution by ARM

    • Step: ARM orchestrates the deployment.
    • Explanation: ARM interacts with various Azure services to create the VM and its supporting resources:
      • Resource Allocation: Allocates compute, storage, and network resources.
      • Resource Creation: Creates the VM, virtual network, public IP, and other resources.
      • Configuration: Applies the specified configuration settings to the VM and related resources.

    Monitoring and Management by ARM

    • Step: ARM monitors and manages the resources.
    • Explanation: ARM provides tools and interfaces to monitor the VM’s health, manage its configuration, and perform operations like scaling, updating, and deleting the VM.

    Summary Diagram

    Here’s a simplified diagram to illustrate the manual creation process and ARM interaction:

    |        User Interaction Flow          |
    | 1. Access Azure Portal                |
    | 2. Navigate to VM Creation            |
    | 3. Configure Basic Settings           |
    | 4. Configure Administrator Account    |
    | 5. Configure Networking               |
    | 6. Configure Disks                    |
    | 7. Configure Management and Advanced  |
    | 8. Review and Create                  |
    |        Submission to ARM              |
    | ARM receives the deployment request   |
    | and starts processing it.             |
    |         Validation by ARM             |
    | ARM checks for:                       |
    | - Syntax and Parameters               |
    | - Permissions                         |
    | - Quotas                              |
    |       Deployment Execution by ARM     |
    | ARM orchestrates the deployment:      |
    | - Resource Allocation                 |
    | - Resource Creation                   |
    | - Configuration                       |
    |  Monitoring and Management by ARM     |
    | ARM provides tools to monitor and     |
    | manage the VM and its resources.      |

    Benefits of Using Resource Groups and ARM

    • Centralized Management: Manage all resources related to a project or application in one place.
    • Consistent Deployments: Use ARM templates to ensure that infrastructure is deployed consistently across environments.
    • Efficient Access Control: Apply RBAC at the resource group level to control access to all resources within the group.
    • Organized Environment: Use resource groups and tags to keep your Azure environment organized and easy to manage.
    • Automated Rollbacks: ARM provides automatic rollback capabilities to maintain the desired state in case of deployment failures.

    Azure Resources

    Here is a comprehensive list of Azure resources categorized by service type:


    • Virtual Machines (VMs): Scalable, on-demand computing resources.
    • VM Scale Sets: Manage and scale a set of VMs.
    • Azure Kubernetes Service (AKS): Managed Kubernetes container orchestration service.
    • Azure Functions: Serverless compute service.
    • Azure App Service: Host web apps, RESTful APIs, and mobile backends.
    • Azure Batch: Large-scale parallel and batch compute.
    • Azure Container Instances (ACI): Run Docker containers on-demand.
    • Azure Service Fabric: Build and manage scalable microservices.


    • Virtual Network (VNet): Private network within Azure.
    • Load Balancer: Distribute incoming network traffic.
    • Application Gateway: Application delivery controller as a service.
    • VPN Gateway: Connect on-premises networks to Azure.
    • Azure DNS: Host DNS domains.
    • ExpressRoute: Private connections to Azure.
    • Traffic Manager: DNS-based traffic load balancer.
    • Azure Firewall: Managed, cloud-based network security service.
    • Network Security Groups (NSGs): Filter network traffic to and from Azure resources.


    • Azure Blob Storage: Object storage for cloud-native and data lake solutions.
    • Azure File Storage: Fully managed file shares.
    • Azure Disk Storage: High-performance managed disks for VMs.
    • Azure Queue Storage: Messaging between application components.
    • Azure Table Storage: NoSQL key-value store.
    • Azure Data Lake Storage: Scalable data storage for big data analytics.


    • Azure SQL Database: Managed relational database service.
    • Azure Cosmos DB: Globally distributed, multi-model database.
    • Azure Database for MySQL: Managed MySQL database service.
    • Azure Database for PostgreSQL: Managed PostgreSQL database service.
    • Azure Database for MariaDB: Managed MariaDB database service.
    • Azure Cache for Redis: In-memory data structure store.
    • SQL Managed Instance: Managed instance of SQL Server.


    • Azure Synapse Analytics: Analytics service that brings together big data and data warehousing.
    • Azure Databricks: Apache Spark-based analytics platform.
    • Azure Data Factory: Data integration service.
    • Azure Stream Analytics: Real-time stream processing.
    • Azure Data Lake Analytics: On-demand analytics job service.
    • Azure HDInsight: Managed Hadoop, Spark, R, HBase, and Storm clusters.

    AI and Machine Learning

    • Azure Machine Learning: Build and deploy machine learning models.
    • Cognitive Services: Pre-built APIs for vision, speech, language, and decision making.
    • Azure Bot Service: Build intelligent bots.
    • Azure Cognitive Search: Search-as-a-service for private data.


    • Azure DevOps Services: Development collaboration tools including pipelines, repos, and boards.
    • Azure DevTest Labs: Quickly create environments in Azure while minimizing waste and controlling cost.
    • GitHub Actions: CI/CD automation.


    • Azure Active Directory (AD): Identity and access management service.
    • Azure AD B2C: Identity management for consumer-facing applications.
    • Azure AD Domain Services: Managed domain services like domain join, group policy, LDAP, etc.

    Management and Governance

    • Azure Monitor: Full-stack monitoring service.
    • Azure Automation: Automate repetitive tasks.
    • Azure Resource Manager (ARM): Deployment and management service.
    • Azure Policy: Manage policies and compliance.
    • Azure Cost Management: Monitor and manage Azure spending.
    • Azure Blueprints: Define a repeatable set of Azure resources.
    • Azure Security Center: Unified security management and advanced threat protection.
    • Azure Advisor: Personalized best practices recommendations.


    • Azure Logic Apps: Automate workflows and integrate apps.
    • Azure Service Bus: Messaging service for enterprise applications.
    • Azure Event Grid: Event routing service.
    • Azure API Management: Manage APIs across all environments.
    • Azure Event Hubs: Big data streaming platform and event ingestion service.


    • Azure IoT Hub: Managed service to connect, monitor, and manage IoT assets.
    • Azure IoT Central: Fully managed IoT app platform.
    • Azure Sphere: Secure and power IoT devices.
    • Azure Time Series Insights: Analytics, storage, and visualization service for IoT.

    Mixed Reality

    • Azure Spatial Anchors: Build spatially aware mixed reality applications.
    • Azure Remote Rendering: Render high-quality 3D content in the cloud.


    • Azure Key Vault: Securely store and manage keys, secrets, and certificates.
    • Azure Sentinel: Cloud-native SIEM for intelligent security analytics.


    • Azure Migrate: Discover, assess, and migrate on-premises applications.
    • Azure Site Recovery: Disaster recovery as a service.
    • Azure Database Migration Service: Migrate databases with minimal downtime.


    • Azure Blockchain Service: Managed blockchain service for consortium networks.


    • Azure App Service: PaaS offering for hosting web apps, RESTful APIs, and mobile backends.
    • Azure Static Web Apps: Streamlined full-stack static web app hosting service.


    • Azure Media Services: Encoding, streaming, and content protection for media.


    • Azure Quantum: Open cloud ecosystem for quantum solutions.

    Azure Resource Manager (ARM)

    • Templates: JSON files that define the resources to be deployed.
    • Resource Groups: Logical containers for managing and organizing resources.
    |         Azure Resources         |
    | Compute    | VMs, AKS, ACI      |
    | Networking | VNet, LB, VPN GW   |
    | Storage    | Blob, Disk, Files  |
    | Databases  | SQL, Cosmos DB     |
    | Analytics  | Synapse, Databricks|
    | AI & ML    | Machine Learning   |
    | DevOps     | Azure DevOps       |
    | Identity   | AD, B2C, Domain Svc|
    | Mgmt & Gov | Monitor, Policy    |
    | Integration| Logic Apps, SB     |
    | IoT        | IoT Hub, Central   |
    | Mixed Reality | Spatial Anchors |
    | Security   | Key Vault, Sentinel|
    | Migration  | Migrate, DMS       |
    | Blockchain | Blockchain Svc     |
    | Web        | App Service, Static|
    | Media      | Media Services     |
    | Quantum    | Azure Quantum      |
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