Monitoring, Cost and Governance Interview Questions for Microsoft Azure

Azure Monitor is the unified monitoring platform for Azure and hybrid resources. It collects metrics, which are numeric time series stored for 93 days, and logs, which are records stored in Log Analytics workspaces and queried with KQL. Sources include platform metrics, activity logs, resource logs through diagnostic settings, VM guest data through the Azure Monitor Agent and app telemetry from Application Insights.

A Log Analytics workspace is the store for log data in Azure Monitor, organised into tables like AzureActivity, Heartbeat and AppRequests. You query it with KQL, set retention per table up to 12 years with long-term retention, and control access with workspace or resource-context RBAC. Most organisations use a central workspace per region or environment to simplify querying and Sentinel, with table plans to manage cost.

Application Insights is the APM feature of Azure Monitor. It collects requests, dependencies, exceptions, traces and custom events from apps through OpenTelemetry-based SDKs or auto-instrumentation in App Service, Functions and AKS. Features include the application map, live metrics, failure and performance analysis, availability tests and distributed tracing. Workspace-based resources store data in Log Analytics so you can join it with infrastructure logs.

Azure Advisor analyses your resource configuration and usage and gives free recommendations in five categories: reliability, security, performance, cost and operational excellence. Examples include resizing underused VMs, buying reservations, enabling zone redundancy and adding backups. It provides an Advisor score per category. Review it weekly, suppress items that are not relevant, and use its alerts to notify owners of new cost recommendations.

Cost Management analyses and controls Azure spending. Cost analysis shows cost by service, resource group, tag or meter with forecasts. Budgets send alerts at thresholds such as 80% and 100% of actual or forecast spend and can trigger automation. Exports send daily cost data to Storage for reporting in Power BI. It also shows reservation utilisation and supports FinOps practices like showback and chargeback to teams.

Service Health shows the health of Azure services in your regions: service issues happening now, planned maintenance, health advisories and security advisories, plus retirement notices. Resource Health shows if a specific resource, such as a VM, is available and why not. Set activity log alerts on Service Health so the team gets notified for incidents affecting their subscriptions and regions, instead of finding out from users.

In Cost Management, choose Budgets, set the scope to the subscription or a resource group, a monthly amount and alert conditions such as 50%, 80% and 100% of actual cost and 100% of forecast. Add email recipients and an action group that can notify Teams or run an automation. Budgets do not stop spending on their own, so pair them with automation or policy if needed.

Situation: during a release night, CPU, disk and payment error alerts fired together. Task: decide what to handle first. Action: I ranked by customer impact, so payment failures came first, checked Service Health for a platform issue, assigned disk and CPU checks to a teammate and kept a running update in the incident channel. Result: payments recovered quickly and we tuned the noisy CPU alerts afterwards.

The activity log records control-plane operations at subscription level, such as who created, updated or deleted a resource, and service health events. It is kept for 90 days unless exported. Resource logs record data-plane activity inside a resource, such as Key Vault secret reads or SQL audit events, and must be enabled with diagnostic settings to send them to Log Analytics, Storage or Event Hubs.

Metric alerts evaluate metrics such as CPU above 80% and can be dynamic with machine-learned thresholds. Log search alerts run KQL queries on a schedule. Activity log alerts fire on control-plane events or Service Health incidents. Smart detection in Application Insights finds anomalies. Alerts trigger action groups that send emails, SMS, Teams messages, webhooks or run Functions, Logic Apps and Automation runbooks.

Azure Backup protects data by taking scheduled backups of VMs, SQL and SAP HANA in VMs, Azure Files, blobs, disks and on-premises servers into Recovery Services or Backup vaults, with retention policies, soft delete and immutability. Azure Site Recovery replicates whole VMs continuously to another region or from on-premises to Azure for disaster recovery, with recovery plans for orchestrated failover. Backup is for restoring data; Site Recovery is for business continuity.

RPO, recovery point objective, is the maximum acceptable data loss measured in time. RTO, recovery time objective, is how long recovery may take. A daily backup gives an RPO of up to 24 hours. Site Recovery gives an RPO of seconds to minutes and an RTO of minutes to hours. SQL failover groups give an RPO of seconds. Lower RPO and RTO cost more, so agree targets per application.

Azure Resource Graph is a fast query service over resource metadata across all subscriptions you can access, using KQL. It is used for inventory, compliance checks and finding orphaned resources, such as unattached disks or public IPs, much faster than looping through APIs. The portal's All resources view and Azure Policy compliance use it. Results reflect configuration, not performance metrics.

Make tags like costcenter and team mandatory through Azure Policy with deny for new resources and modify to inherit from resource groups. Prefer separate subscriptions per team where possible, since subscription boundaries are the cleanest cost split. Use Cost Management views and scheduled exports grouped by tag and subscription into Power BI. Share untaggable costs like shared networking with an agreed split.

Situation: our order service had silent failures that customers reported hours later. Task: detect them first. Action: I added Application Insights availability tests and a log alert on failed dependency calls to the payment gateway, routed to Teams and on-call. Result: two weeks later the alert caught an expired partner certificate within five minutes, and we fixed it before most users noticed.

Use Azure Policy with deployIfNotExists definitions, such as the built-in initiatives for enabling resource logs to a Log Analytics workspace by category group. Assign them at the management group, create a remediation task for existing resources and let new resources be configured automatically. This avoids teams forgetting to enable logs, which is common when resources are created outside the pipeline.

Enable Container Insights and Managed Prometheus with Managed Grafana for cluster and pod metrics. Instrument services with OpenTelemetry sending to Application Insights for distributed tracing. Send logs to a central Log Analytics workspace using cheaper table plans for verbose logs. Define SLOs for latency and error rate, alert on them through action groups and build dashboards and runbooks for common failures.

Run the usage query on the Usage table to see which tables and resources ingest most. Remove debug or duplicate logs at the source, use data collection rules with transformations to drop columns or filter rows, and move verbose tables to Basic or Auxiliary plans. Set a daily cap for non-production workspaces, shorten interactive retention and use commitment tiers if ingestion is steady above 100 GB per day.

Agree RPO and RTO with the business. Replicate VMs to South India with Azure Site Recovery, configure recovery plans that start the database first, then app and web tiers, and pre-create the network. Use Traffic Manager or Front Door for DNS failover. Back up data separately with Azure Backup in case of corruption. Run test failovers into an isolated VNet every quarter.

Check whether alerts measured the right signal: CPU alerts miss application errors. Add alerts on user-facing SLIs, such as failed request rate, p95 latency and availability tests from multiple locations in Application Insights. Make sure the action group has correct recipients and that alert processing rules are not suppressing it. Review the incident timeline and add the missing signals to the on-call runbook.

Organise subscriptions under management groups and assign initiatives at the top: allowed regions, required tags, diagnostics, no public IPs in corp zones, Defender plans on. Use deny for critical rules and audit for the rest, with exemptions tracked. Deploy policy as code from a repo. Report compliance and secure score monthly, and use Resource Graph for inventory and cost dashboards across all subscriptions.