Azure OpenAI Service – Tracking Token Usage with APIM

This is part of my series on GenAI Services in Azure:

  1. Azure OpenAI Service – Infra and Security Stuff
  2. Azure OpenAI Service – Authentication
  3. Azure OpenAI Service – Authorization
  4. Azure OpenAI Service – Logging
  5. Azure OpenAI Service – Azure API Management and Entra ID
  6. Azure OpenAI Service – Granular Chargebacks
  7. Azure OpenAI Service – Load Balancing
  8. Azure OpenAI Service – Blocking API Key Access
  9. Azure OpenAI Service – Securing Azure OpenAI Studio
  10. Azure OpenAI Service – Challenge of Logging Streaming ChatCompletions
  11. Azure OpenAI Service – How To Get Insights By Collecting Logging Data
  12. Azure OpenAI Service – How To Handle Rate Limiting
  13. Azure OpenAI Service – Tracking Token Usage with APIM
  14. Azure AI Studio – Chat Playground and APIM
  15. Azure OpenAI Service – Streaming ChatCompletions and Token Consumption Tracking
  16. Azure OpenAI Service – Load Testing

Yeah, yeah, yeah, I missed posting in July. I have been appropriately shamed on a daily basis by WordPress reminders.

I’m going to make up for it today by covering another of the “Generative AI Gateway” features of APIM (Azure API Management) that were announced a few months back. I’ve already covered the circuit breaker and load balancing and the token-based rate limiting features. These two features have made it far easier to distribute and control the usage of the AOAI (Azure OpenAI Service) that is being offered as a core enterprise service. One of the challenges that isn’t addressed by those features is charge backs.

As I’ve covered in prior posts, you can get away with an instance or two of AOAI dedicated to an app when you have one or two applications at the POC (proof-of-concept) stage. Capacity and charge back isn’t an issue in that model. However, your volume of applications will grow as well as the capacity of tokens and requests those applications require as they move to production. This necessitates AOAI being offered as a core foundational service as basic as DNS or networking. The patterns for doing this involve centrally distributing requests across several instances of AOAI spread across different regions and subscriptions using a feature like the circuit breaker and load balancing features of APIM. Once you have several applications drawing from a common pool, you then need to control how much each of those applications can consume using a feature like the token-based rate limiting feature of APIM.

Common way to scale AOAI service

Wonderful! You’ve built a service that has significant capacity and can service your BUs from a central endpoint. Very cool, but how are you gonna determine who is consuming what volume?

You may think, “That information is returned in the response. I can have the developers use a common code snippet to send that information for each response to a central database where I can track it.” Yeah nah, that ain’t gonna work. First, you ain’t ever gonna get that level of consistency across your enterprise (if you do have this, drop me an email because I want to work there). Second, as of today, the APIs do not return the number of tokens used for streaming based chat completions which will be a large majority of what is being sent to the models.

I know you, and you’re determined. You follow-up with, “Well Matt, I’m simply going to pull the native metrics from each of the AOAI instances I’m load balancing to.” Well yeah, you could do that but guess what? Those only show you the total consumed across the instance and do not provide a dimension for you to determine how much of that total was related to a specific application.

Native metrics and its dimensions for an instance of AOAI

“Well Matt, I’m going to configure diagnostic logging for each of my AOAI instances and check off the Request and Response Logs. Surely that information will be in there!”. You don’t quit do you? Let me shatter your hopes yet again, no that will not work. As I’ve covered in a prior post while the logs do contain the Entra ID object ID (assuming you used Entra ID-based authentication) you won’t find any token counts in those logs either.

AOAI Request and Response Logs

Well fine then, you’re going to use a custom logging solution to capture token usage when it’s returned by the API and calculate it when it isn’t. While yes this does work and does provide a number of additional benefits beyond information for charge backs (and I’m a fan of this pattern) it takes some custom code development and some APIM policy snippet expertise. What if there was an easier way?

That is where the token metrics feature of APIM really shines. This feature allows you to configure APIM to emit a custom metric for the tokens consumed by a Completion, Chat Completion (EVEN STREAMING!!), or Embeddings API call to an AOAI backend with a very basic APIM Policy snippet. You can even add custom dimensions and that is where this feature gets really powerful.

The first step in setting this up is to spin up an instance of Application Insights (if your APIM isn’t already hooked into one) and a Log Analytics Workspace the Application Insights instance will be associated with. Once your App Insights instance is created, you need to modify the settings API in APIM you’ve defined for AOAI and turn on the App Insights integration and enable custom metrics as seen below.

Enable custom metrics in APIM

Next up, you need to modify your APIM policy. In the APIM Policy snippet below I extra a few pieces of data from the request and add them as dimensions to the custom metric. Here I’m extracting the Entra ID app id of security principal accessing the AOAI service (this would be the application’s identity if you’re using Entra ID authentication to the AOAI service) and the model deployment name being called from AOAI which I’ve standardized to be the same as the model name.

         <!-- Extract the application id from the Entra ID access token -->

        <set-variable name="appId" value="@(context.Request.Headers.GetValueOrDefault("Authorization",string.Empty).Split(' ').Last().AsJwt().Claims.GetValueOrDefault("appid", string.Empty))" />

        <!-- Extract the model name from the URL -->

        <set-variable name="uriPath" value="@(context.Request.OriginalUrl.Path)" />
        <set-variable name="deploymentName" value="@(System.Text.RegularExpressions.Regex.Match((string)context.Variables["uriPath"], "/deployments/([^/]+)").Groups[1].Value)" />

        <!-- Emit token metrics to Application Insights -->

        <azure-openai-emit-token-metric namespace="openai-metrics">
            <dimension name="model" value="@(context.Variables.GetValueOrDefault<string>("deploymentName","None"))" />
            <dimension name="client_ip" value="@(context.Request.IpAddress)" />
            <dimension name="appId" value="@(context.Variables.GetValueOrDefault<string>("appId","00000000-0000-0000-0000-000000000000"))" />
        </azure-openai-emit-token-metric>

After making a few calls from my code to APIM, the metrics begin to populate in the App Insights instance. To view those metrics you’ll want to go into the App Insights blade and go to the Monitoring -> Metrics section. Under the Metrics Namespace drop down you’ll see the namespace you’ve created in the policy snippet. I named mine openai-metrics.

Accessing custom metrics in App Insights for token metrics

I can now select metrics based on prompt tokens, completion tokens, and total tokens consumed. Here I select the completion tokens and split the data by the appId, client IP address, and model to give me a view of how many tokens each app is consuming and of which model at any given time span.

Metrics split by dimensions

Very cool right?

As of today, there are some key limitations to be aware of:

  1. Only Chat Completions, Completions, and Embedding API operations are supported today.
  2. Each API operation is further limited by which models it supports. For example, as of August 2024, Chat Completions only supports gpt-3.5 and gpt-4. No 4o support yet unfortunately.
  3. If you’re using a load balanced pool backend, you can’t yet use the actual backend the pool send the request to as a dimension.

Well folks, hopefully this helps you better understand why this functionality was added and the value it provides. While you could do this with another API Gateway (pick your favorite), it likely won’t be as simple as it it with APIM’s policy snippet. Another win for cloud native I guess!

Thanks!

Azure OpenAI Service – Load Balancing

This is part of my series on GenAI Services in Azure:

  1. Azure OpenAI Service – Infra and Security Stuff
  2. Azure OpenAI Service – Authentication
  3. Azure OpenAI Service – Authorization
  4. Azure OpenAI Service – Logging
  5. Azure OpenAI Service – Azure API Management and Entra ID
  6. Azure OpenAI Service – Granular Chargebacks
  7. Azure OpenAI Service – Load Balancing
  8. Azure OpenAI Service – Blocking API Key Access
  9. Azure OpenAI Service – Securing Azure OpenAI Studio
  10. Azure OpenAI Service – Challenge of Logging Streaming ChatCompletions
  11. Azure OpenAI Service – How To Get Insights By Collecting Logging Data
  12. Azure OpenAI Service – How To Handle Rate Limiting
  13. Azure OpenAI Service – Tracking Token Usage with APIM
  14. Azure AI Studio – Chat Playground and APIM
  15. Azure OpenAI Service – Streaming ChatCompletions and Token Consumption Tracking
  16. Azure OpenAI Service – Load Testing

Updates:

  • 10/29/2024 – Microsoft has announced a deployment option referred to as a data zone (https://azure.microsoft.com/en-us/blog/accelerate-scale-with-azure-openai-service-provisioned-offering/). Data zones can be thought of as data sovereignty boundaries incorporated into the existing global deployment option. This will significantly ease load balancing so you will no longer need to deploy individual regional instances and can instead deploy a single instance with a data zone deployment within a single subscription. As you hit the cap for TPM/RPM within that subscription, you can then repeat the process with a new subscription and load balance across the two. This will result in fewer backends and a more simple load balancing setup.

Welcome back folks!

Today I’m back again talking load balancing in AOAI (Azure OpenAI Service). This is an area which has seen a ton of innovation over the past year. From what began as a very basic APIM (API Management) policy snippet providing randomized load balancing was matured to add more intelligence by a great crew out of Microsoft via the “Smart” Load Balancing Policy. Innovative Microsoft folk threw together a solution called PowerProxy which provides load balancing and other functionality without the need for APIM. Simon Kurtz even put together a new Python library to provide load balancing at the SDK-level without the need for additional infrastructure. Lots of great ideas put into action.

The Product Group for APIM over at Microsoft was obviously paying attention to the focus in this area and have introduced native functionality which makes addressing this need cake. With the introduction of the load balancer and circuit breaker feature in APIM, you can now perform complex load balancing without needing a complex APIM policy. This dropped with a bunch of other Generative AI Gateway (told you this would become an industry term!) features for APIM that were announced this week. These other features include throttling based on tokens consumed (highly sought after feature!), emitting token counts to App Insights, caching completions for optimization of token usage, and a simpler way to onboard AOAI into APIM. Very cool stuff of which I’ll be covering over the next few weeks. For this post I’m going to focus on the new load balancing and circuit breaker feature.

Before I dive into the new feature I want to do a quick review of why scaling across AOAI instances is so important. For each model you have a limited amount of requests and tokens you can pass to the service within a given subscription within a region. These limits vary on a per model basis. If you’re consuming a lot of prompts or making a lot of requests it’s fairly easy to hit these limits. I’ve seen a customer hit the limits within a region with one document processing application. I had another customer who deployed a single Chat Bot in a simple RAG (retrieval augmented generation) that was being used by large swath of their help desk staff and limits were quickly a problem. The point I’m making here is you will hit these limits and you will need to add figure out how to solve it. Solving it is going to require additional instances in different Azure regions likely spread across multiple subscriptions. This means you’ll need to figure out a way to spread applications across these instances to mitigate the amount of throttling your applications have to deal with.

Load Balancing Azure OpenAI Service

As I covered earlier, there are a lot of ways you can load balancing this service. You could do it at the local application using Simon’s Python library if you need to get something up and running quickly for an application or two. If you have an existing deployed API Gateway like an Apigee or Mulesoft, you could do it there if you can get the logic right to support it. If you want to custom build something from scratch or customize a community offering like PowerProxy you could do that as well if you’re comfortable owning support for the solution. Finally, you have the native option of using Azure APIM. I’m a fan of the APIM option over the Python library because it’s scalable to support hundreds of applications with a GenAI (generative AI) need. I also like it more than custom building something because the reality is most customers don’t have the people with the necessary skill sets to build something and are even less likely to have the bodies to support yet another custom tool. Another benefit of using APIM include the backend infrastructure powering the solution (load balancers, virtual machines, and the like) are Microsoft’s responsibility to run and maintain. Beyond load balancing, it’s clear that Microsoft is investing in other “Generative AI Gateway” types of functionality that make it a strategic choice to move forward with. These other features are very important from a security and operations perspective as I’ve covered in past posts. No, there was not someone from Microsoft holding me hostage forcing me to recommend APIM. It is a good solution for this use case for most customers today.

Ok, back to the new load balancing and circuit breaker feature. This new feature allows you to use new native APIM functionality to create a load balancing and circuit breaker policy around your APIM backends. Historically to do this you’d need a complex policy like the “smart” load balancing policy seen below to accomplish this feature set.

<policies>
    <inbound>
        <base />
        <!-- Getting the main variable where we keep the list of backends -->
        <cache-lookup-value key="listBackends" variable-name="listBackends" />
        <!-- If we can't find the variable, initialize it -->
        <choose>
            <when condition="@(context.Variables.ContainsKey("listBackends") == false)">
                <set-variable name="listBackends" value="@{
                    // -------------------------------------------------
                    // ------- Explanation of backend properties -------
                    // -------------------------------------------------
                    // "url":          Your backend url
                    // "priority":     Lower value means higher priority over other backends. 
                    //                 If you have more one or more Priority 1 backends, they will always be used instead
                    //                 of Priority 2 or higher. Higher values backends will only be used if your lower values (top priority) are all throttling.
                    // "isThrottling": Indicates if this endpoint is returning 429 (Too many requests) currently
                    // "retryAfter":   We use it to know when to mark this endpoint as healthy again after we received a 429 response

                    JArray backends = new JArray();
                    backends.Add(new JObject()
                    {
                        { "url", "https://andre-openai-eastus.openai.azure.com/" },
                        { "priority", 1},
                        { "isThrottling", false }, 
                        { "retryAfter", DateTime.MinValue } 
                    });

                    backends.Add(new JObject()
                    {
                        { "url", "https://andre-openai-eastus-2.openai.azure.com/" },
                        { "priority", 1},
                        { "isThrottling", false },
                        { "retryAfter", DateTime.MinValue }
                    });

                    backends.Add(new JObject()
                    {
                        { "url", "https://andre-openai-northcentralus.openai.azure.com/" },
                        { "priority", 1},
                        { "isThrottling", false },
                        { "retryAfter", DateTime.MinValue }
                    });

                    backends.Add(new JObject()
                    {
                        { "url", "https://andre-openai-canadaeast.openai.azure.com/" },
                        { "priority", 2},
                        { "isThrottling", false },
                        { "retryAfter", DateTime.MinValue }
                    });

                    backends.Add(new JObject()
                    {
                        { "url", "https://andre-openai-francecentral.openai.azure.com/" },
                        { "priority", 3},
                        { "isThrottling", false },
                        { "retryAfter", DateTime.MinValue }
                    });

                    backends.Add(new JObject()
                    {
                        { "url", "https://andre-openai-uksouth.openai.azure.com/" },
                        { "priority", 3},
                        { "isThrottling", false },
                        { "retryAfter", DateTime.MinValue }
                    });

                    backends.Add(new JObject()
                    {
                        { "url", "https://andre-openai-westeurope.openai.azure.com/" },
                        { "priority", 3},
                        { "isThrottling", false },
                        { "retryAfter", DateTime.MinValue }
                    });

                    backends.Add(new JObject()
                    {
                        { "url", "https://andre-openai-australia.openai.azure.com/" },
                        { "priority", 4},
                        { "isThrottling", false },
                        { "retryAfter", DateTime.MinValue }
                    });

                    return backends;   
                }" />
                <!-- And store the variable into cache again -->
                <cache-store-value key="listBackends" value="@((JArray)context.Variables["listBackends"])" duration="60" />
            </when>
        </choose>
        <authentication-managed-identity resource="https://cognitiveservices.azure.com" output-token-variable-name="msi-access-token" ignore-error="false" />
        <set-header name="Authorization" exists-action="override">
            <value>@("Bearer " + (string)context.Variables["msi-access-token"])</value>
        </set-header>
        <set-variable name="backendIndex" value="-1" />
        <set-variable name="remainingBackends" value="1" />
    </inbound>
    <backend>
        <retry condition="@(context.Response != null && (context.Response.StatusCode == 429 || context.Response.StatusCode >= 500) && ((Int32)context.Variables["remainingBackends"]) > 0)" count="50" interval="0">
            <!-- Before picking the backend, let's verify if there is any that should be set to not throttling anymore -->
            <set-variable name="listBackends" value="@{
                JArray backends = (JArray)context.Variables["listBackends"];

                for (int i = 0; i < backends.Count; i++)
                {
                    JObject backend = (JObject)backends[i];

                    if (backend.Value<bool>("isThrottling") && DateTime.Now >= backend.Value<DateTime>("retryAfter"))
                    {
                        backend["isThrottling"] = false;
                        backend["retryAfter"] = DateTime.MinValue;
                    }
                }

                return backends; 
            }" />
            <cache-store-value key="listBackends" value="@((JArray)context.Variables["listBackends"])" duration="60" />
            <!-- This is the main logic to pick the backend to be used -->
            <set-variable name="backendIndex" value="@{
                JArray backends = (JArray)context.Variables["listBackends"];

                int selectedPriority = Int32.MaxValue;
                List<int> availableBackends = new List<int>();

                for (int i = 0; i < backends.Count; i++)
                {
                    JObject backend = (JObject)backends[i];

                    if (!backend.Value<bool>("isThrottling"))
                    {
                        int backendPriority = backend.Value<int>("priority");

                        if (backendPriority < selectedPriority)
                        {
                            selectedPriority = backendPriority;
                            availableBackends.Clear();
                            availableBackends.Add(i);
                        } 
                        else if (backendPriority == selectedPriority)
                        {
                            availableBackends.Add(i);
                        }
                    }
                }

                if (availableBackends.Count == 1)
                {
                    return availableBackends[0];
                }
            
                if (availableBackends.Count > 0)
                {
                    //Returns a random backend from the list if we have more than one available with the same priority
                    return availableBackends[new Random().Next(0, availableBackends.Count)];
                }
                else
                {
                    //If there are no available backends, the request will be sent to the first one
                    return 0;    
                }
                }" />
            <set-variable name="backendUrl" value="@(((JObject)((JArray)context.Variables["listBackends"])[(Int32)context.Variables["backendIndex"]]).Value<string>("url") + "/openai")" />
            <set-backend-service base-url="@((string)context.Variables["backendUrl"])" />
            <forward-request buffer-request-body="true" />
            <choose>
                <!-- In case we got 429 or 5xx from a backend, update the list with its status -->
                <when condition="@(context.Response != null && (context.Response.StatusCode == 429 || context.Response.StatusCode >= 500) )">
                    <cache-lookup-value key="listBackends" variable-name="listBackends" />
                    <set-variable name="listBackends" value="@{
                        JArray backends = (JArray)context.Variables["listBackends"];
                        int currentBackendIndex = context.Variables.GetValueOrDefault<int>("backendIndex");
                        int retryAfter = Convert.ToInt32(context.Response.Headers.GetValueOrDefault("Retry-After", "-1"));

                        if (retryAfter == -1)
                        {
                            retryAfter = Convert.ToInt32(context.Response.Headers.GetValueOrDefault("x-ratelimit-reset-requests", "-1"));
                        }

                        if (retryAfter == -1)
                        {
                            retryAfter = Convert.ToInt32(context.Response.Headers.GetValueOrDefault("x-ratelimit-reset-tokens", "10"));
                        }

                        JObject backend = (JObject)backends[currentBackendIndex];
                        backend["isThrottling"] = true;
                        backend["retryAfter"] = DateTime.Now.AddSeconds(retryAfter);

                        return backends;      
                    }" />
                    <cache-store-value key="listBackends" value="@((JArray)context.Variables["listBackends"])" duration="60" />
                    <set-variable name="remainingBackends" value="@{
                        JArray backends = (JArray)context.Variables["listBackends"];

                        int remainingBackends = 0;

                        for (int i = 0; i < backends.Count; i++)
                        {
                            JObject backend = (JObject)backends[i];

                            if (!backend.Value<bool>("isThrottling"))
                            {
                                remainingBackends++;
                            }
                        }

                        return remainingBackends;
                    }" />
                </when>
            </choose>
        </retry>
    </backend>
    <outbound>
        <base />
        <!-- This will return the used backend URL in the HTTP header response. Remove it if you don't want to expose this data -->
        <set-header name="x-openai-backendurl" exists-action="override">
            <value>@(context.Variables.GetValueOrDefault<string>("backendUrl", "none"))</value>
        </set-header>
    </outbound>
    <on-error>
        <base />
    </on-error>
</policies>

Complex policies like the above are difficult to maintain and easy to break (I know, I break my policies all of time). Compare that with a policy that does something very similar with the new load balancing and circuit breaker feature.

<policies>
    <!-- Throttle, authorize, validate, cache, or transform the requests -->
    <inbound>
        <set-backend-service backend-id="backend_pool_aoai" />
        <base />
    </inbound>
    <!-- Control if and how the requests are forwarded to services  -->
    <backend>
        <base />
    </backend>
    <!-- Customize the responses -->
    <outbound>
        <base />
    </outbound>
    <!-- Handle exceptions and customize error responses  -->
    <on-error>
        <base />
    </on-error>
</policies>

A bit simpler eh? With the new feature you establish a new APIM backend of a “pool” type. In this backend you configure your load balancing and circuit breaker logic. In the Terraform template below, I’ve created a load balanced pool that includes three existing APIM backends which are each an individual AOAI instance. I’ve divided the three backends into two priority groups such that the APIM so that APIM will concentrate the requests to the first priority group until a circuit break rule is triggered. I configured a circuit breaker rule that will hold sending additional requests for 1 minute (tripDuration) to a backend if that backend returns a single (count) 429 over the course of 1 minute (interval). You’ll likely want to play with the tripDuration and interval to figure out what works for you.

Priority group 2 will only be used if all the backends in priority group 1 have circuit breaker rules tripped. The use case here might be that your priority group 1 instance is a AOAI instance setup for PTU (provisioned throughput units) and you want overflow to dump down into instances deployed at the standard tier (basically consumption based).

resource "azapi_resource" "symbolicname" {
  type = "Microsoft.ApiManagement/service/backends@2023-05-01-preview"
  name = "string"
  parent_id = "string"
  body = jsonencode({
    properties = {
      circuitBreaker = {
        rules = [
          {
            failureCondition = {
              count = 1
              errorReasons = [
                "Backend service is throttling"
              ]
              interval = "PT1M"
              statusCodeRanges = [
                {
                  max = 429
                  min = 429
                }
              ]
            }
            name = "breakThrottling "
            tripDuration = "PT1M",
            acceptRetryAfter = true
          }
        ]
      }
      description = "This is the load balanced backend"
      pool = {
        services = [
          {
            id = "/subscriptions/XXXXXXXX-XXXX-XXXX-XXXX-XXXXXXXXXXXX/resourceGroups/rg-demo-aoai/providers/Microsoft.ApiManagement/service/apim-demo-aoai-jog/backends/openai-3",
            priority = 1
          },
          {
            id = "/subscriptions/XXXXXXXX-XXXX-XXXX-XXXX-XXXXXXXXXXXX/resourceGroups/rg-demo-aoai/providers/Microsoft.ApiManagement/service/apim-demo-aoai-jog/backends/openai-1",
            priority = 2
          },
          {
            id = "/subscriptions/XXXXXXXX-XXXX-XXXX-XXXX-XXXXXXXXXXXX/resourceGroups/rg-demo-aoai/providers/Microsoft.ApiManagement/service/apim-demo-aoai-jog/backends/openai-2",
            priority = 2
          }
        ]
      }
    }
  })
}

Very cool right? This makes for way simpler APIM policy which means troubleshooting APIM policy that much easier. You could also establish different pools for different categories of applications. Maybe you have a pool with a PTU and standard tier instances for mission-critical production apps and another pool of only standard instances for non-production applications. You could then direct specific applications (based on their Entra ID service principal id) to different pools. This feature gives you a ton of flexibility in how you handle load balancing without a to of APIM policy overhead.

With the introduction of this feature into APIM, it makes APIM that much more of an appealing solution for this use case. No longer do you need a complex policy and in-depth APIM policy troubleshooting skills to make this work. Tack on the additional GenAI features Microsoft introduced that I mentioned earlier, as well as its existing features and capabilities available in APIM policy, you have a damn fine tool for your Generative AI Gateway use case.

Well folks that wraps up this post. I hope this overview gave you some insight into why load balancing is important with AOAI, what the historical challenges have been doing it within APIM, and how those challenges have been largely removed with the added bonus of additional new GenAI-based features make this a tool worth checking out.

Azure Authorization – Azure RBAC Basics

This is part of my series on Azure Authorization.

  1. Azure Authorization – The Basics
  2. Azure Authorization – Azure RBAC Basics
  3. Azure Authorization – actions and notActions
  4. Azure Authorization – Resource Locks and Azure Policy denyActions
  5. Azure Authorization – Azure RBAC Delegation
  6. Azure Authorization – Azure ABAC (Attribute-based Access Control)

Welcome back folks. In this post I will be continuing my series on Azure authorization by covering the basics of Azure RBAC. I will review the components that make up Azure RBAC and touch upon some of the functionality I’ll be covering in future posts of this series. Grab a coffee, get comfy, and prepare to review some JSON!

In my first post in this series I touched on the basics of authorization in Azure. In that post I covered the differences between the management plane (actions on a resource) and the data plane (actions on data stored in the resource). I also called out the four authorization planes for Azure which include Entra ID Roles, Enterprise Billing Accounts, Azure Classic Subscription Admin Roles, and Azure RBAC (Role-Based Access Control). If you’re unfamiliar with these concepts, take a read through that post before you continue.

Authorization Planes for Azure

Azure RBAC is the primary authorization plane for Microsoft Azure. When making a request to the ARM (Azure Resource Manager) REST API it’s Azure RBAC that decides whether or not the action is allowed (with the exceptions I covered in my first post and some exceptions I’ll cover through this series). Azure RBAC is configured by using a combination of two resources which include the Azure RBAC Role Definition and Azure RBAC Role Assignment. At a high level, an Azure RBAC Role Definition is a collection of permissions and an assignment is the granting of those permissions to a security principal for an access scope. Definitions and assignments can only be created by a security principal that has been assigned an Azure RBAC Role with the permissions in the Microsoft.Authorization resource provider. The specific permissions include Microsoft.Authorization/roleDefinitions/* and Microsoft.Authorization/roleAssignments/*. Out of the box there are two built-in roles that have these permission which include User Access Administrator and Owner (there are a few others that are newer and I’ll discuss in a future post).

Let me dig deeper into both of these resources.

It all starts with an Azure Role Definition. These can be either built-in (pre-existing roles Microsoft provides out of the box) or custom (a role you design yourself). A role definition is made up of three different components which include the permissions (actions), assignable scopes, and conditions. The permissions include the actions that can be performed, the assignable scope is the access scopes the role definition can be assigned to, and the conditions further constrain the access for the purposes of a largely new and upcoming additional features for Azure RBAC.

Azure RBAC Role Definition – Structure

Permissions are divided into four categories which include actions, notActions, dataActions, and notDataActions. The actions and notActions are management plane permissions and dataActions and notDataActions are data plane permissions. As mentioned earlier, management plane is actions on the resource while data plane is actions on the data within the resource. Azure RBAC used to be management plane only, but has increasingly (thankfully) been expanded into the data plane. Actions and dataActions are the actions that are allowed and notActions and notDataActions are the actions which should be removed from the list of actions. That likely sounds very confusing and I’ll cover it in more depth in my next post. For now, understand that a permission in notAction or notDataAction is not an explicit deny.

The assignable scopes component is a list of places the role definition can be assigned (I’ll get to this later). The assignable scopes include management group (with some limitations for custom role definitions), subscription, resource group, or resource. Note that whatever scopes are includes, the scopes under it are also included. For example, an assignable scope of a management group would make the role definition usable at that management scope, subscriptions associated with that management group, resource groups within those subscriptions, and resources within those resource groups.

Lastly, we have the conditions. Conditions are a new feature of Azure RBAC Role Definitions and Assignments and are used to further filter the access based on other properties of the security principal, session, or resource. These conditions are used in newer features I’ll be covering throughout this series.

When trying to learn something, I’m a big fan of looking at the raw information from the API. It gives you all the properties you’d never know about when interacting via the GUI. Below is the representation of a built-in Azure RBAC Role Definition. You can dump this information using Azure PowerShell, Azure CLI, or the REST API. Using Azure CLI you would use the az role definition command.

Azure RBAC Role Definition – Data

There are a few things I want you to focus on. First, you’ll notice the id property. Each Azure RBAC Role Definition has a unique GUID which must be unique across the Entra ID tenant. The GUIDs for built-in roles should (never run into an instance where they were not) be common across all instances of Entra ID. Like all Azure objects, Azure RBAC Role Definitions also have be be stored somewhere. Custom Azure RBAC Role Definitions can be stored at the management group or subscription-level. I’d recommend you store your Azure RBAC Role Definitions at the management group level whenever possible so they can be re-used (there is a limit of 5,000 custom Azure RBAC Role Definitions per Entra ID tenant) and they exist beyond the lifetime of the subscription (think of use case where you re-use a role definition from subscription 1 in subscription 2 then blow up subscription 1, uh oh).

Next, you’ll see the assignableScopes property with a value of “/”. That “/” represents the root management group (see my post on the root management group if you’re unfamiliar with the concept). As of 3/2024, only built-in role definitions can have an assignable scope of “/”. When you create a custom role definition you will likely create it with an assignable scope of either a management group (good for common roles that will be used across subscriptions and to keep under the 5,000 role definition limit) or subscription (good for use cases where a business unit may have specific requirements).

Lastly, you’ll see that a condition has been applied to this Azure RBAC Role Definition. As of 3/2024 only built-in roles will include conditions in the definitions. I’ll cover what these conditions do in a future post.

Excellent, so you now grasp the Azure RBAC Role Definition. Let me next dive into Assignments.

Azure RBAC Role Assignments associate a role definition to a security principal and assign an access scope to those permissions. At a high-level, they are made up of four components which include the security principal (the entity assigned the role), role definition (the collection of permissions), scope (the access scope), and conditions (further filters on how this access can be exercised).

Azure RBAC Role Assignment – Structure

The security principal component is the entity that will be assigned the role for the specific access scope. This can be an Entra ID user, group, service principal, or managed identity.

The role definition is the Azure RBAC Role Definition (collection of permissions) the security principal will be assigned. This can include a built-in role or a custom role.

The scope is the access scope the security principal can exercise the permissions defined in the role definition. It’s most common to create Azure RBAC Role Assignments at the subscription and resource group scope. If you have a subscription strategy where every application gets its own subscription, the subscription scope may make sense for you. If your strategy is subscriptions at the business unit level you may create assignments at the resource group. Assignments at the management group tend to be limited to roles for the central IT (platform and security) team. Take note there are limits to the number of assignments at different scopes which are documented at this link. As of 3/2024 you cannot assign an Azure RBAC Role with dataActions or notDataActions permissions at the management group scope.

Let’s now take a look at the API representation of a typical role assignment. You can dump this information using Azure PowerShell, Azure CLI, or the REST API. When using Azure CLI you would do:

az role assignment list
Azure RBAC Role Assignment – Data

Here there are a few properties to note. Just like the Azure Role Definitions, the id property of an Azure RBAC Assignment must contain a GUID unique to the Entra ID tenant.

The principalId is the object id of the security principal in Entra ID and the principalType is the object type of the security principal which will be user, group, or service principal. Why no managed identity? The reason for that is managed identities are simply service principals with some orchestration on top. If you’re curious as to how managed identities are represented in Entra ID, check out my post on orphaned managed identities.

The scope is the access scope the permissions will apply to. In the example above, the permissions granted by this role assignment will have the scope of the rg-demo-da-50bfd resource group.

This role assignment also has a condition. The capabilities of conditions and where they are used will be covered in a future post.

The last property I want to touch on is the delegatedManagedIdentityResourceId. This is a property used when Azure Lighthouse is in play.

Alright folks, that should give you a basic understanding of the foundations of Azure RBAC. Your key takeaways for today are:

  • Assigning a security principal permissions consists of two resources, the role definition (the set of permissions) and the assignment (combination of the role, security principal, and access scope).
  • Custom Azure RBAC Role Definitions should be created at the management group level where possible to ensure their lifecycle persists beyond the subscription they are used within. Be aware of the 5,000 per Entra ID tenant limit.
  • Azure RBAC Role Assignments are most commonly created at the subscription or resource group level. Usage at management groups will likely be limited to granting permissions for Central IT or Security. Be aware of the limits around the number of assignments.

In my next post I’ll dig deeper into how notActions and notDataActions works, demonstrate how it is not an explicit deny, and compare and contract an Azure RBAC Role Definition to an AWS IAM Policy.

Have a great week!

Azure Virtual Network Manager – Dynamic Network Group Membership

Happy New Year fellow geeks!

Over the past few weeks I’ve been diving into the relatively new Azure product Azure Virtual Network Manager (AVNM). AVNM was first introduced back in late 2021 with the connectivity feature and security admin rule feature. In the past year both features have begun to trickle into general availability in some regions. I was interested in the Security Admin Rules feature so I did my usual thing and began to read through all the documentation and experiment with the service. I’ll be covering Security Admin Rules in another post. In this short post I will be focusing on how you onboard virtual networks to the connectivity and security admin rule features.

When an AVNM instance is created, it is assigned a scope of what it can manage. This can subscriptions added individually or it can be all subscriptions under a specific management group. A given scope can only have one AVNM instance assigned to it.

Azure Virtual network Manager Sample Architecture

Today, under the assigned scope, AVNM can manage how virtual networks are connected to each other with the connectivity feature and what traffic is allowed or denied within the virtual network with the security admin rules feature superseding Network Security Groups. Within an AVNM instance you group virtual networks under the managed scope into a construct called a Network Group. Network Groups are then associated to either a connectivity or security admin rule configuration as seen below.

Azure Virtual Network Manager Resource relationships

Network groups can contain multiple virtual networks and virtual networks can be members of multiple Network Groups. Virtual networks can be added to a Network Group manually or dynamically through Azure Policy. The rest of this post will focus on dynamic membership and some of the interesting properties of the Azure Policy definitions.

Before I dive into the policy definition I want to call out a neat feature the Product Group built into the solution. When accessing an AVNM instance from the Azure Portal there is a handy GUI-based tool included that can be used to graphically build the conditions on which virtual networks will be members of the Network Group. In the background, this tool builds out the Azure Policy definition and creates the assignment at the scopes you specify. This is one of the only products I’ve come across within Azure that assists the customer in building out an Azure Policy for the service. Great job by the product group!

Azure Policy builder to onboard virtual networks into a Network Group in Azure Virtual Network Manager

With the settings pictured above, I’m creating an Azure Policy to onboard all virtual networks tagged (there are a number of parameters and operators combinations you can use besides tags) with the key of environment and value of production under the specified scope to the Network Group. The policy will look something like this:

{
"properties": {
"policyType": "Custom",
"mode": "Microsoft.Network.Data",
"policyRule": {
"if": {
"allOf": [
{
"field": "type",
"equals": "Microsoft.Network/virtualNetworks"
},
{
"allOf": [
{
"field": "tags['environment']",
"equals": "production"
}
]
}
]
},
"then": {
"effect": "addToNetworkGroup",
"details": {
"networkGroupId": "/subscriptions/XXXXXXXX-XXXX-XXXX-XXXX-XXXXXXXXXXXX/resourceGroups/rg-demo-avnm-core332fd/providers/Microsoft.Network/networkManagers/avnm-core332fd/networkGroups/ng-prod"
}
}
}
},
"id": "/providers/Microsoft.Management/managementGroups/jogcloud/providers/Microsoft.Authorization/policyDefinitions/test",
"type": "Microsoft.Authorization/policyDefinitions",
"name": "test"

}

I’ve bolded the two properties I want you to key in on. The first property is the mode property. If you’ve written a custom Azure Policy or examined built-in policies you will likely be used to that property being set to either all or indexed. Here you will see it is set to Microsoft.Network.Data. This is one of the new resource provider modes that has been introduced which extends Azure Policy’s functionality. The other interesting property is the effect property. Again, you will likely be used to this being audit, deny, deployIfNotExists, etc. Instead, it is populated with a value of addToNetworkGroup. Both of these properties are specific to AVNM’s feature for dynamic members into its Network Groups.

Being the geek I am, I decided to try writing my own custom Azure Policy definition which would parameterize the the tag key, value, and resource id of the Network Group. Interestingly, you’re blocked from parameterizing the Network Group id due to a regex filter that has been put in. This regex filter validates that the Network Group id looks like an id and will reject if you try to do it as a parameter. I plan on submitting some feedback requesting this regex filter be removed which would allow for this to be fully parameterized. As of now, it looks like you’ll need an Azure Policy definition for each Network Group where you’re using dynamic membership.

Error message when parameterizing Network Group resource id

Once you create your Azure Policy definition and create the assignment, at the next policy evaluation the matching virtual networks will be added into the Network Group as dynamic members. The feature works exactly as described and is incredibly handy in quickly and efficiently onboarding new and existing virtual networks to a specific Network Group to apply a connectivity or security admin rule configuration.

Well folks that’s it for this short blog post. I found the dynamic membership and new Azure Policy properties interesting enough to warrant their own post. I’ve added an example working parameterized Azure Policy definition to my custom Azure Policy GitHub repo if you’re interested in messing around with it yourself.

Expect more posts to come on Azure Virtual Network Manager. Have a great night!