A fundamental management construct in Microsoft Azure is the Management group. It is important to understand these both for the exam and for effective Azure management. Let’s look closer at Azure Management groups and how these are configured.

What are Azure Management groups?

Azure Management groups are important when it comes to organizing Azure subscriptions and resources. They enable structuring your Azure resources for efficient governance. Using Azure Management groups, you can configure a hierarchical management system that helps simplify access management and policy enforcement across multiple Azure subscriptions.

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When you have many different subscriptions applying governance consistently across those subscriptions can be challenging. Management groups provide a layer of governance that sits above the existing subscriptions, allowing you to organize your subscriptions into these select Management groups and apply inherited policies across all your underlying subscriptions in Microsoft Entra.

Management group hierarchy

Azure Management groups

Note the following about Management groups:

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  • Up to 10,000 Management groups are accommodated within a single directory
  • The Management group tree allows for a maximum of six depth levels, excluding the Root level and subscription level
  • A singular parent is the limit for each Management group and subscription
  • Multiple children can be associated with each Management group
  • Within each directory, every subscription and Management group is organized under a unified hierarchy

Integration with Microsoft Entra ID

Azure Management groups are deeply integrated with Entra ID (Azure Active Directory), allowing for sophisticated user and group properties management. This integration enables access control and role assignments from Azure AD users and groups and that these have appropriate permissions within the Management group hierarchy. If you are syncing Active Directory Domain Services, on-premises groups and users will also be synchronized for assignment.

Role of Tenant Root Management groups

By default, within each directory in Microsoft Entra, you are given a single top-level Management group. This Management group is the tenant root Management group. All subscriptions and Management groups are child objects to this root Management group.

Microsoft lays out a specific workflow for managing the root Management group. That is as follows:

  • the Azure AD global administrator elevates to the User Access Administrator role of the root group initially
  • After this elevation, the administrator can assign any Azure role or other groups or users to manage the root Management group hierarchy
  • As a note, the tenant root Management group cannot be deleted

Create a Management group

To effectively use Azure Management groups, we need to log into the Azure portal. Search for “management” or “Management groups.”

Azure Management groups

Next, we click the button Start using Management groups.

Azure Management groups

Name your Management group and enter a display name. Click Submit.

Azure Management groups

After a few moments, the Management group is created. We can see the Tenant root Management group that’s created by default.

Azure Management groups

Implementing Azure Role Assignments

Azure role assignments within Management groups allow controlling access to Azure resources. These roles determine the extent to which users and Azure AD groups can manage resources within the Management group. Understanding role assignment and its impact on resource access is a key component of the AZ-104 exam.

Let’s look at assigning a role to the new Management group we created above. Click your Management group and then select Access control (IAM).

Azure Management groups

Next, click the + Add button > Add role assignment.

Azure Management groups

On the Role tab, you can search for a specific role.

Azure Management groups

Next, on the Members tab, we can select the members for the role assignment. Then click Select.

Azure Management groups

On the Review + assign screen, click the Review + assign button.

Azure Management groups

Best Practices for Azure Management group Configuration

Configuring and managing Management groups according to best practices includes understanding the Management group hierarchy. It also involves using role assignments effectively and leveraging Azure AD for user and group management.

FAQs for Azure Management groups

How do Azure Management groups enhance resource governance across multiple Azure subscriptions?

Azure Management groups provide a structured approach to managing access, policies, and compliance for numerous Azure subscriptions. By grouping subscriptions under a Management group, administrators can apply uniform policies and access controls, ensuring streamlined governance and better resource management.

What is the significance of the root Management group in Azure’s hierarchy?

The root Management group is the top-level group in Azure’s hierarchy, overseeing all Management groups and subscriptions. It’s instrumental in implementing overarching policies and access controls, which are then inherited by child groups and subscriptions, providing a centralized governance model.

Can I create a custom role for a specific Management group?

Yes, Azure allows the creation of custom roles for Management groups. These roles can be tailored to specific needs, granting precise permissions for managing resources within the group. Custom roles facilitate more granular control over access and operations within a Management group.

In what ways do Azure AD and Management groups interact?

Azure AD integrates with Management groups to manage user and group properties efficiently. This integration facilitates robust access control and management, allowing administrators to assign specific roles and permissions to Azure AD users and groups within the Management group hierarchy.

How do nested Management groups improve organization and management in Azure?

Nested Management groups offer a layered approach to organizing Azure subscriptions and resources. By creating a hierarchy of Management groups, administrators can efficiently delegate control, apply specific policies, and manage resources at different levels, enhancing overall organization and management.

Is it possible to manage both security groups and resources within a single Management group?

Yes, within a single Management group, administrators can manage both security groups and resources. This feature allows for streamlined management of access controls and policies across various resources and user groups, enhancing security and compliance.

What role do Azure role assignments play in Management groups?

Azure role assignments are critical in defining access levels within Management groups. They determine the scope of control and permissions granted to users and groups, ensuring that resources and subscriptions are accessed and managed securely and according to governance policies.

Wrapping up

For those looking at sitting for the AZ-104 exam, you need to understand Management groups, what they are, and how they are created. Understand the hierarchy of Management groups, the root Management group, and assigning roles to Management groups.

Read More:
Microsoft Azure Administrator: AZ-104: Manage Costs in Microsoft Azure – Part 18

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