Lesson 1: Azure Fundamentals

Level: Beginner Module: 01 — Azure Fundamentals Focus: Understanding Microsoft Azure, cloud computing, Azure architecture, subscriptions, tenants, regions, resource groups, and resources.


1. Learning Objectives

By the end of this lesson, you should be able to:

  1. Explain what cloud computing is.
  2. Explain what Microsoft Azure is.
  3. Distinguish between on-premises computing and cloud computing.
  4. Explain IaaS, PaaS, and SaaS.
  5. Understand the basic Azure hierarchy.
  6. Explain tenants, subscriptions, resource groups, and resources.
  7. Explain Azure regions and availability zones.
  8. Navigate the Azure Portal.
  9. Understand the purpose of Azure Cloud Shell.
  10. Explain how Azure can be applied to databases, data management, analytics, and clinical research.

2. What Is Cloud Computing?

Simple definition

Cloud computing is the delivery of computing resources over the internet instead of requiring an organization to own and maintain all the physical computing infrastructure itself.

These resources can include:

  • Servers
  • Storage
  • Databases
  • Networking
  • Software
  • Computing power
  • Security services
  • Analytics
  • Artificial intelligence
  • Backup and disaster recovery

Instead of buying a physical server and installing it in your organization, you can rent computing resources from a cloud provider.


3. A Simple Real-World Analogy

Imagine that you want electricity for your house.

You could build your own power station:

Buy land
   ↓
Build power station
   ↓
Buy generators
   ↓
Buy fuel
   ↓
Hire technicians
   ↓
Maintain equipment
   ↓
Generate electricity

Or you can connect to the electricity grid and pay for what you consume.

Cloud computing works in a similar way.

Instead of:

Buy server
   ↓
Install server
   ↓
Configure server
   ↓
Maintain server
   ↓
Replace failed hardware
   ↓
Upgrade hardware

you can use:

Cloud provider
      ↓
   Azure
      ↓
Use computing resources
      ↓
Pay according to usage

The cloud provider operates the underlying physical infrastructure.


4. What Is Microsoft Azure?

Microsoft Azure is Microsoft’s cloud computing platform.

Azure provides hundreds of cloud services that organizations can use to build, deploy, store, secure, analyze, and manage applications and data.

Examples include:

Area Azure services/examples
Compute Virtual Machines, App Service
Storage Blob Storage, Azure Files
Databases Azure SQL, Azure Database for PostgreSQL
Networking Virtual Network, VPN Gateway
Identity Microsoft Entra ID
Security Microsoft Defender for Cloud, Key Vault
Data engineering Azure Data Factory, Azure Data Lake
Analytics Synapse Analytics, Power BI
AI/ML Azure Machine Learning
Monitoring Azure Monitor
DevOps Azure DevOps, GitHub integration

Azure therefore isn’t one application.

It is a large ecosystem of cloud services.


5. Why Organizations Use Azure

Organizations may use Azure because they want to:


6. On-Premises vs Cloud

On-Premises

Suppose a clinical research organization has its own server room.

                 ORGANIZATION

       ┌─────────────────────────┐
       │       Server Room       │
       │                         │
       │  ┌──────┐  ┌────────┐  │
       │  │Server│  │Storage │  │
       │  └──────┘  └────────┘  │
       │                         │
       │  Networking             │
       │  Backup                 │
       │  Power                  │
       │  Cooling                │
       │  Security               │
       └─────────────────────────┘

The organization is responsible for:

  • Hardware
  • Electricity
  • Cooling
  • Physical security
  • Server maintenance
  • Operating systems
  • Backups
  • Network infrastructure
  • Hardware replacement

Cloud

With Azure:

             AZURE

      ┌────────────────────┐
      │ Microsoft           │
      │ Azure Infrastructure│
      │                    │
      │ Servers            │
      │ Storage             │
      │ Networking          │
      │ Datacenters         │
      └────────────────────┘
               │
               ▼
        Your Azure resources

Microsoft manages the underlying Azure infrastructure, while you manage the parts of the environment that your chosen service exposes to you.


7. Important: Cloud Does NOT Mean “Someone Else Does Everything”

This is an important concept.

Moving to Azure does not eliminate your responsibility.

Azure follows different responsibility models depending on the service.

For example, with an Azure Virtual Machine, you may still be responsible for:

Microsoft manages the underlying physical infrastructure.

Therefore:

Cloud security is a shared responsibility.


8. The Three Main Cloud Service Models

One of the most important concepts in cloud computing is:

IaaS, PaaS, and SaaS


8.1 IaaS — Infrastructure as a Service

IaaS means that the cloud provider provides infrastructure such as:

  • Virtual machines
  • Storage
  • Networking

You have significant control over the environment.

Example

Azure Virtual Machines.

You might create:

Azure
  │
  └── Virtual Machine
          │
          ├── Windows/Linux
          ├── Applications
          ├── Database software
          └── Your data

You are responsible for much of the configuration and management inside the VM.

Analogy

IaaS is similar to renting an empty house.

You get the structure, but you have to furnish and manage much of it yourself.


9. PaaS — Platform as a Service

PaaS provides a managed platform on which you can run applications or databases without managing the underlying infrastructure yourself.

Examples include:

For example:

Your application
       ↓
Azure App Service
       ↓
Microsoft-managed infrastructure

You focus more on your application and data rather than maintaining the physical server and much of the underlying platform.

Analogy

PaaS is similar to renting a fully serviced apartment.

The infrastructure is already there and much of the maintenance is handled for you.


10. SaaS — Software as a Service

SaaS is software that you use over the internet.

Examples outside Azure include:

You generally don’t manage the servers or operating system running the software.

You simply use the application.

Analogy

SaaS is similar to staying in a hotel.

You use the service without managing the building.


11. IaaS vs PaaS vs SaaS

Feature IaaS PaaS SaaS
Infrastructure management Provider Provider Provider
OS management Usually customer Provider Provider
Application management Customer Customer Provider
Data Customer Customer Customer
Level of control High Medium Lower
Example Azure VM Azure App Service Microsoft 365

A useful way to remember them:

IaaS → You manage more
PaaS → Azure manages more
SaaS → Provider manages almost everything

12. Azure’s Basic Organizational Hierarchy

Before creating Azure resources, you need to understand the hierarchy.

A simplified view is:

Microsoft Entra Tenant
        │
        ▼
   Subscription
        │
        ▼
  Resource Group
        │
        ▼
     Resources

Each level has a different purpose.


13. Microsoft Entra Tenant

A Microsoft Entra tenant represents an organization’s identity environment in Microsoft cloud services.

It contains identities such as:

For example:

Organization
     │
     ▼
Entra Tenant
     │
 ┌───┼────────┐
 │   │        │
Users Groups Applications

Microsoft Entra ID is Microsoft’s cloud identity and access management service.

You will study this much more deeply later.


14. Azure Subscription

An Azure subscription is a major boundary for Azure resource management and billing.

Think of a subscription as an account/container under which Azure resources are created and billed.

For example:

Organization
      │
      ├── Production Subscription
      │
      ├── Development Subscription
      │
      └── Testing Subscription

Organizations may use separate subscriptions for:


15. Resource Group

A resource group is a logical container for Azure resources.

For example:

Subscription
     │
     ▼
Clinical-Research-RG
     │
     ├── Azure SQL Database
     ├── Storage Account
     ├── Data Factory
     ├── Key Vault
     └── Application

Resources in a resource group can be managed together.

Important principle

A resource group is primarily a management and organizational boundary, not a physical server or physical location.


16. Azure Resource

A resource is an individual Azure service instance that you create and manage.

Examples:

For example:

Resource Group
      │
      ├── VM
      ├── Storage Account
      ├── PostgreSQL
      └── Key Vault

Each is an Azure resource.


17. Putting the Hierarchy Together

Imagine we are building a cloud platform for a clinical research organization.

Microsoft Entra Tenant
          │
          ▼
Clinical Research Azure Subscription
          │
     ┌────┴─────┐
     ▼          ▼
Development    Production
Resource       Resource
Group          Group
     │              │
     │              ├── Azure SQL
     │              ├── Data Lake
     │              ├── Data Factory
     │              └── Key Vault
     │
     ├── Test Database
     └── Test Storage

This hierarchy will become extremely important as you become an Azure administrator or architect.


18. Azure Regions

Azure operates data centers around the world.

A region is a geographic area containing one or more Azure datacenters.

Examples of regions include locations in:

When creating an Azure resource, you may need to select a region.

For example:

User
 │
 ▼
Azure Portal
 │
 ▼
Create Resource
 │
 ▼
Select Region
 │
 ▼
Create Resource

19. Why Does Region Matter?

Region selection can affect:

For example, if your users are primarily in East Africa, network latency may be an important consideration when selecting where workloads are hosted.

For regulated data, you must also consider organizational policies and applicable legal/regulatory requirements.


20. Availability Zones

Some Azure regions contain Availability Zones.

Availability Zones are physically separate locations within an Azure region, designed to provide additional resilience against failures affecting one location.

Conceptually:

              Azure Region
                   │
        ┌──────────┼──────────┐
        ▼          ▼          ▼
     Zone 1      Zone 2      Zone 3
        │          │          │
      VM-A       VM-B       VM-C

If an application is designed to use multiple availability zones, a failure affecting one zone may not necessarily take down the entire application.


21. Region vs Availability Zone

Do not confuse these concepts.

Region

A geographic Azure location.

Region
 ├── Datacenter(s)
 └── Availability Zones

Availability Zone

A physically separate location within a supported Azure region.


22. Azure Portal

The Azure Portal is the web-based graphical interface for managing Azure.

You can use it to:

Think of it as the control center for Azure.


23. Azure Cloud Shell

Azure Cloud Shell provides a browser-accessible command-line environment for working with Azure.

You can use:

Bash

az group list

or

PowerShell

Get-AzResourceGroup

Cloud Shell is useful because you don’t necessarily need to install all Azure command-line tools on your computer before starting.


24. Azure CLI

The Azure CLI allows you to manage Azure resources from the command line.

For example:

az group list

This lists resource groups you have access to.

You can also create a resource group:

az group create \
  --name MyResourceGroup \
  --location eastus

The CLI becomes extremely important when you move from manually clicking through the portal to automation.


25. Portal vs CLI

You should eventually become comfortable with both.

Azure Portal

Good for:

  • Learning
  • Visual configuration
  • Exploring services
  • Troubleshooting
  • Monitoring

Azure CLI

Good for:

  • Automation
  • Repeated deployments
  • Scripting
  • DevOps
  • Administration

As an Azure professional:

Don’t become dependent on the Portal. Learn the command line.


26. Azure Resource Manager

Azure Resource Manager, commonly called ARM, is the management layer through which Azure resources are created, updated, and organized.

Conceptually:

You
 │
 ├── Azure Portal
 ├── Azure CLI
 ├── PowerShell
 ├── APIs
 └── Infrastructure as Code
          │
          ▼
 Azure Resource Manager
          │
          ▼
 Azure Resources

This concept will become important when we study Infrastructure as Code and automated deployments.


27. A Clinical Research Example

Suppose a research organization wants to migrate a PostgreSQL database to Azure.

The organization currently has:

Clinical Site
     │
     ▼
PostgreSQL Server
     │
     ├── Participant data
     ├── Visit data
     ├── Laboratory data
     └── Study data

A possible Azure environment could eventually look like:

Azure Subscription
       │
       ▼
Clinical-Production-RG
       │
       ├── Azure Database for PostgreSQL
       │
       ├── Storage Account
       │
       ├── Data Factory
       │
       ├── Key Vault
       │
       ├── Virtual Network
       │
       └── Azure Monitor

Notice that Azure is not simply “a server in the cloud.”

It can provide an entire ecosystem around the data.


28. Data Flow Example

Later in this course, you will learn how to build something like:

REDCap / EDC
      │
      ▼
Data Extraction
      │
      ▼
Azure Data Factory
      │
      ▼
Azure Data Lake
      │
      ├──────────────┐
      ▼              ▼
Databricks       Azure SQL
      │              │
      └───────┬──────┘
              ▼
           Power BI
              │
              ▼
       Research Dashboard

This is where your existing data-management experience becomes very valuable.


29. Azure and Data Security

When dealing with research or other sensitive data, security becomes a major consideration.

Important Azure security concepts include:

Later we will study these systematically.


30. Important Azure Vocabulary

Term Meaning
Cloud computing Computing resources delivered over a network
Azure Microsoft’s cloud computing platform
Tenant Identity boundary associated with an organization
Subscription Azure resource and billing management boundary
Resource group Logical container for Azure resources
Resource Individual Azure service instance
Region Geographic Azure location
Availability Zone Physically separate location within a supported Azure region
IaaS Infrastructure as a Service
PaaS Platform as a Service
SaaS Software as a Service
Azure Portal Web interface for Azure
Azure CLI Command-line management tool
ARM Azure Resource Manager

31. Key Concepts to Remember

If you remember nothing else from this lesson, remember these:

1. Azure is a cloud platform

It provides computing, storage, networking, databases, security, analytics, AI and many other services.

2. Cloud does not mean zero responsibility

The provider manages some parts of the environment, while the customer remains responsible for other parts.

3. Remember the service models

IaaS → Infrastructure
PaaS → Platform
SaaS → Software

4. Remember the basic hierarchy

Tenant
  ↓
Subscription
  ↓
Resource Group
  ↓
Resources

5. Region and availability zone are different

Region
  ↓
Availability Zones

6. Learn both Portal and CLI

The Portal is excellent for learning and visual management.

The CLI becomes increasingly important for automation and professional administration.


32. Practical Exercise 1 — Explore Azure

If you have an Azure account, log into the Azure Portal.

Your first task is simply to explore.

Look for:

  1. Home
  2. Resource Groups
  3. Virtual Machines
  4. Storage Accounts
  5. Azure SQL
  6. Microsoft Entra ID
  7. Subscriptions
  8. Cost Management
  9. Azure Monitor
  10. Cloud Shell

Do not create expensive resources yet.

For now, become familiar with the environment.


33. Practical Exercise 2 — Open Cloud Shell

From the Azure Portal, open Cloud Shell.

Select Bash if prompted.

Run:

az account show

This displays information about the currently active Azure subscription.

Then run:

az group list

This lists resource groups that your account can access.

Try:

az account list

This lists subscriptions available to your account.


34. Practical Exercise 3 — Your First Resource Group

If you have an Azure subscription suitable for experimentation, create a resource group.

Example:

az group create \
  --name QuantLean-Azure-Lab \
  --location eastus

Then verify it:

az group show \
  --name QuantLean-Azure-Lab

Finally:

az group list \
  --output table

You should see your resource group in the list.

Important

Azure resources can incur charges.

For learning, always check pricing, free-tier eligibility, quotas, and whether a resource should be deleted after the exercise.


35. Practical Exercise 4 — Think Like an Azure Architect

Imagine that you are asked:

A clinical research organization wants to move its PostgreSQL database, Excel/CSV datasets and research reports to Azure.

Answer these questions:

Question 1

Would you use IaaS, PaaS, or SaaS for the database?

Question 2

What Azure resource could be used for object/file storage?

Question 3

Why might you use a resource group?

Question 4

What is the difference between a subscription and a resource group?

Question 5

Why does Azure region selection matter?

Question 6

What would you use to manage identities and access?

Do not worry if you don’t know all the answers yet.

These questions are designed to show you what you will learn next.


36. Knowledge Test

Try answering these without looking back at the notes.

Question 1

What is cloud computing?

Question 2

What is Microsoft Azure?

Question 3

What is the difference between IaaS and PaaS?

Question 4

Give one example of an Azure IaaS service.

Question 5

What is an Azure subscription?

Question 6

What is a resource group?

Question 7

What is an Azure resource?

Question 8

What is an Azure region?

Question 9

What is an availability zone?

Question 10

What is the purpose of Azure CLI?

Question 11

What does RBAC stand for?

Question 12

Complete the hierarchy:

Tenant
   ↓
__________
   ↓
__________
   ↓
Resources

37. Interview Questions

An Azure interview may ask:

Beginner

Q: What is Azure?

A strong answer should explain that Azure is Microsoft’s cloud platform providing services for computing, storage, networking, databases, security, analytics, AI and application hosting.


Q: What is the difference between IaaS, PaaS and SaaS?

You should be able to explain the differences in terms of who manages infrastructure, operating systems, applications and data.


Q: What is a resource group?

You should explain that it is a logical container used to organize and manage related Azure resources.


Q: What is an Azure region?

You should explain that it is a geographic Azure location containing one or more datacenters and that region selection can affect latency, availability, compliance and other considerations.


38. Teaching Exercise

Because you intend to teach others, try explaining this lesson without looking at your notes.

Imagine someone asks:

“Martin, I don’t understand what Azure is. Explain it to me in five minutes.”

Explain:

  1. Cloud computing
  2. Azure
  3. IaaS
  4. PaaS
  5. SaaS
  6. Subscription
  7. Resource group
  8. Resource
  9. Region

If you can explain those concepts clearly to another person, you have understood the foundation.


39. Lesson Summary

Azure is Microsoft’s cloud computing platform.

Cloud computing allows organizations to consume computing resources without necessarily owning and operating the underlying physical infrastructure themselves.

The three fundamental cloud service models are:

IaaS
Infrastructure as a Service

PaaS
Platform as a Service

SaaS
Software as a Service

The basic Azure organizational hierarchy is:

Microsoft Entra Tenant
        ↓
    Subscription
        ↓
   Resource Group
        ↓
      Resources

Azure resources operate within geographic regions, and some regions support multiple availability zones for resilience.

Azure can be managed through:


40. What Comes Next?

Lesson 2 — Azure Architecture and Core Services

In the next lesson we will go deeper into:

  • Azure physical infrastructure
  • Datacenters
  • Regions
  • Region pairs
  • Availability zones
  • Azure global infrastructure
  • Management groups
  • Subscriptions
  • Resource groups
  • Resources
  • Azure Resource Manager
  • Azure Marketplace
  • Azure service categories
  • Naming conventions
  • Azure tags
  • Basic governance

We will also start building your Azure laboratory environment, which will become the foundation for the practical projects throughout this course.


Personal Learning Principle

Do not try to memorize hundreds of Azure services.

Instead, learn to answer four questions whenever you encounter an Azure service:

What problem does this service solve?

Where does it fit in the architecture?

Who manages what?

When would I use it instead of another service?

That mindset is what will eventually move you from “someone who has studied Azure” to “someone who can design and work with Azure.”