🏗️ IAC Azure Core Governance: Enterprise-Scale Foundation for Cloud Compliance

When organizations scale their Azure footprint, maintaining consistent governance becomes exponentially more challenging. That’s exactly the problem I aimed to solve with the IAC Azure Core Governance project—a robust Infrastructure as Code (IaC) foundation that implements Azure governance patterns at enterprise scale.

The Governance Challenge

Managing multiple Azure subscriptions across different teams and environments introduces significant complexity:

• Inconsistent policy enforcement
• Security vulnerabilities from misconfigurations
• Unpredictable cost management
• Compliance drift over time
• Manual, error-prone governance processes

The traditional approach of manually configuring each subscription simply doesn’t scale. Organizations need automation, consistency, and a framework that evolves with their needs.

Solution Architecture

The IAC Azure Core Governance project provides a comprehensive foundation built on Microsoft’s Cloud Adoption Framework (CAF) and Azure Well-Architected Framework principles:

Root Management Group
├── Platform
│   ├── Management
│   ├── Connectivity
│   └── Identity
├── Landing Zones
│   ├── Production
│   └── Non-Production
├── Sandbox
└── Decommissioned

This hierarchical structure enables:

• Centralized policy management
• Inherited permission models
• Segregation of duties
• Environment-specific controls

Key Features

1. Management Group Hierarchy

The solution implements a flexible management group structure that organizes subscriptions for efficient governance:

• Platform groups for shared services
• Landing Zone groups for workloads
• Sandbox environments for experimentation
• Decommissioned group for end-of-life resources

2. Policy Governance

Comprehensive Azure Policy implementation with:

• Built-in compliance policies (ISO 27001, NIST, PCI DSS)
• Custom policies for organization-specific requirements
• Strategic assignment at different management levels
• Exemption management for special cases

3. Role-Based Access Control (RBAC)

Sophisticated RBAC model implementing the principle of least privilege:

• Custom role definitions tailored to organizational needs
• Clear separation of duties
• Automated access reviews
• Integration with Azure Active Directory groups

4. Security & Compliance

End-to-end security configuration including:

• Microsoft Defender for Cloud setup
• Centralized security monitoring
• Compliance tracking and reporting
• Threat detection and prevention

5. Monitoring & Logging

Robust observability foundation with:

• Centralized logging with Log Analytics
• Activity logs from all subscriptions
• Security events and alerts
• Custom dashboards and workbooks

Implementation Approach

The project follows a phased implementation methodology:

Phase 1: Foundation (Weeks 1-2)

1. Deploy management group hierarchy
2. Implement core policies
3. Set up monitoring infrastructure
4. Configure security baseline

Phase 2: Governance Controls (Weeks 3-4)

1. Deploy custom policies
2. Implement RBAC strategy
3. Configure Security Center
4. Set up alerting and monitoring

Phase 3: Landing Zones (Weeks 5-6)

1. Deploy standardized landing zones
2. Implement workload-specific policies
3. Configure networking and security
4. Test and validate governance controls

Phase 4: Operational Excellence (Weeks 7-8)

1. Implement automation and CI/CD
2. Set up compliance monitoring
3. Train teams on governance processes
4. Establish operational procedures

Technical Implementation

The repository structure is organized for maintainability and clarity:

iac-azure-core-governance/
├── terraform-es/              # Main IaC code
│   ├── management-group/     # Management group hierarchy
│   ├── policies/             # Policy definitions and assignments
│   ├── role-assignments/     # RBAC role assignments
│   └── security/             # Security center configurations
├── lib/                      # Reusable modules
│   └── landing-zone/         # Landing zone module
├── scripts/                  # Helper scripts
├── pipeline-templates/       # CI/CD templates
└── docs/                     # Documentation

Deployment Options

The framework supports two deployment approaches:

Local Deployment

# Initialize Terraform
cd terraform-es
terraform init

# Validate configuration
terraform validate

# Plan deployment
terraform plan -var-file="terraform.tfvars"

# Apply configuration
terraform apply -var-file="terraform.tfvars"

Azure DevOps Pipeline

For enterprise environments, the included Azure DevOps pipeline templates provide:

• Automated validation and compliance checks
• Environment-specific deployments
• Approval gates for production changes
• Audit logging of all governance changes

Benefits and Outcomes

Organizations implementing this framework can expect:

For Cloud Teams

• Reduced Overhead: Automation eliminates repetitive governance tasks
• Increased Consistency: Standard controls across all environments
• Better Visibility: Comprehensive monitoring of the governance state
• Faster Deployments: Pre-approved landing zones accelerate workload onboarding

For Security Teams

• Improved Security Posture: Consistent security controls across all subscriptions
• Continuous Compliance: Automated policy enforcement and drift detection
• Reduced Attack Surface: Standardized security configurations
• Simplified Audits: Centralized compliance reporting

For Business Stakeholders

• Cost Control: Built-in budget policies and cost management
• Risk Reduction: Consistent governance reduces operational risks
• Agility: Self-service capabilities within governed boundaries
• Scalability: Framework grows with the organization’s cloud adoption

Getting Started

To implement this framework in your organization:

1. Assess your current state: Document existing subscriptions, policies and management structure
2. Define your target state: Customize the management group hierarchy and policies to your needs
3. Plan your migration: Develop a phased approach to implementation
4. Deploy the foundation: Use the provided Terraform code to establish your governance foundation
5. Migrate workloads: Systematically move subscriptions into the new structure
6. Validate and refine: Continuously improve your governance model

Conclusion

The IAC Azure Core Governance project represents a significant advancement in how organizations can implement and maintain Azure governance at scale. By leveraging Infrastructure as Code, the solution ensures consistency, compliance, and operational efficiency across complex Azure environments.

Whether you’re a large enterprise with hundreds of subscriptions or just starting your cloud journey, this framework provides the foundation for sustainable governance practices that grow with your organization.

Ready to transform your Azure governance? Start implementing this framework today by visiting the GitHub repository.

Do you have questions about implementing enterprise governance in Azure? Let me know in the comments below, or reach out directly through GitHub.