For large organizations, Azure success depends on solid governance, clear requirements, planned initiatives, and business priorities. Start with a clear hierarchy to apply rules consistently across the organization, not just to individual projects.
First, I set up core elements: management groups, subscriptions, resource groups, and then resources. This structure is practical and important for scaling access and compliance controls. Management groups matter if you have multiple subscriptions and want a uniform baseline. I keep them shallow, three to four levels, since more are hard to manage. Azure allows up to six (excluding the tenant root and subscription level). Assignments at higher levels cascade down, so hierarchy matters.
I use subscriptions as boundaries for billing and scaling. Splitting development, testing, and production into separate subscriptions isolates costs and risks. A dedicated subscription for shared network services, such as ExpressRoute or Virtual WAN, simplifies tracking. Subscription-specific quotas mean some workloads need their own subscription for scaling. Because virtual networks don’t cross subscriptions, network design dictates subscription boundaries.
Group resources by lifecycle to improve operations and minimize risk. Resource group metadata resides in a specific region, even if its resources span multiple regions. Use resource locks to prevent accidental deletion of critical components.
Tags are simple and powerful for tracking costs and clarifying operations. I focus on tags such as environment, cost, department, owner, and, sometimes, data classification. Tags on resource groups don’t automatically apply to resources, causing gaps without enforcement.
Azure Policy is a key guardrail. I configure policies and initiatives (policy groups) at appropriate scopes, often at the management group level for baselines. Policy inheritance enforces rules throughout the structure.
Access control is the key. Azure RBAC assigns permissions by role and checks each request. I use least privilege, assign roles to groups, and set roles at the broadest feasible scope to avoid clutter. RBAC manages actions, Policy controls resources, and configuration. Combined, they address most governance needs.
To ensure repeatability before workloads arrive, I use landing zones, ready-made setups deployed as code that include management groups, subscriptions, baseline policies, and core features. Teams onboard quickly, without building governance each time. The Azure landing zone accelerator is a portal tool to help existing organizations baseline in the same Microsoft Entra tenant.
Good Azure governance isn’t bureaucracy. It lets teams move quickly with guardrails for costs, security, and compliance. Main point: governance accelerates teams without losing alignment or oversight. Using these principles helps organizations protect revenue, innovate, and deliver features faster to compete.

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