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Case study – Contoso Bicycle

Contoso Bicycle is a fictitious company. The company is a small and fast-growing startup that provides online web services to its clientele in the west coast, North America. The web services were deployed to the cloud from the get-go. They have no on-premises datacenters or legacy applications. Here's the brief cloud profile:

  • Have several workloads running and operating in Azure.
  • Use Microsoft Entra ID for identity management.
  • Knowledgeable about containers and have considered them for application development.
  • Aware of Kubernetes as a well-known container orchestration.
  • Researched AKS as a possibility.

The IT teams need guidance about architectural recommendations for running their web services in an AKS cluster.

Based on the company's profile and business requirements, we've created a reference architecture that serves as a baseline with focus on security. The architecture is accompanied with the implementation found in this repo. We recommend that you start with this implementation and add components based on your needs.

Organization structure

Contoso Bicycle has a single IT Team with these subteams.

Contoso teams

Architecture team

Work with the line of business from idea through deployment into production. They understand all aspects of the Azure components: function, integration, controls, and monitoring capabilities. The team evaluates those aspects for functional, security, and compliance requirements. They coordinate and have representation from other teams. Their workflow aligns with Contoso's SDL process.

Development team

Responsible for developing Contoso's web services. They rely on the guidance from the architecture team about implementing cloud design patterns. They own and run the integration and deployment pipeline for the web services.

Security team

Review Azure services and workloads from the lens of security. Incorporate Azure service best practices in configurations. They review choices for authentication, authorization, network connectivity, encryption, and key management and, or rotation. Also, they have monitoring requirements for any proposed service.

Identity team

Responsible for identity and access management for the Azure environment. They work with the Security and Architecture teams for use of Microsoft Entra ID, role-based access control, and segmentation. Also, monitoring service principals for service access and application level access.

Networking team

Make sure that different architectural components can talk to each other in a secure manner. They manage the hub and spoke network topologies and IP space allocation.

Operations team

Responsible for the infrastructure deployment and day-to-day operations of the Azure environment.

Business requirements

Here are the requirements based on an initial Well-Architected Framework review.

Reliability

  • Global presence: The customer base is focused on the West Coast of North America.
  • Business continuity: The workloads need to be highly available at a minimum cost. They have a recovery time objective (RTO) of 4 hours.
  • On-premises connectivity: They don't need to connect to on-premises datacenters or legacy applications.

Performance efficiency

The web service's host should have these capabilities.

  • Auto scaling: Automatically scale to handle the demands of expected traffic patterns. The web service is unlikely to experience a high-volume scale event. The scaling methods shouldn't drive up the cost.
  • Right sizing: Select hardware size and features that are suited for the web service and are cost effective.
  • Growth: Ability to expand the workload or add adjacent workloads as the product matures and gains market adoption.
  • Monitoring: Emit telemetry metrics to get insights into the performance and scaling operations. Integration with Azure Monitor is preferred.
  • Workload-based scaling: Allow granular scaling per workload and independent scaling between different partitions in the workload.

Security

  • Identity management: Contoso is an existing Microsoft 365 user. They rely heavily on Microsoft Entra ID as their control plane for identity.
  • Certificate: They must expose all web services through SSL and aim for end-to-end encryption, as much as possible.
  • Network: They have existing workloads running in Azure Virtual Networks. They would like to minimize direct exposure to Azure resources to the public internet. Their existing architecture runs with regional hub and spoke topologies. This way, the network can be expanded in the future and also provide workload isolation. All web applications require a web application firewall (WAF) service to help govern HTTP traffic flows.
  • Secrets management: They would like to use a secure store for sensitive information.
  • Container registry: Currently not using a registry and are looking for guidance.
  • Container scanning: They know the importance of container scanning but are concerned about added cost. The information isn't sensitive, but would like the option to scan in the future.

Operational excellence

  • Logging, monitoring, metrics, alerting: They use Azure Monitor for their existing workloads. They would like to use it for AKS, if possible.
  • Automated deployments: They understand the importance of automation. They build automated processes for all infrastructure so that environments and workloads can easily be re-created consistently and at any time.

Cost optimization

  • Cost center: There's only one line-of-business. So, all costs are billed to a single cost center.
  • Budget and alerts: They have certain planned budgets. They want to be alerted when certain thresholds like 50%, 75%, and 90% of the plan has been reached.

Design and technology choices

  • Deploy the AKS cluster into an existing Azure Virtual Network spoke. Use the existing Azure Firewall in the regional hub for securing outgoing traffic from the cluster.
  • Traffic from public-facing website is required to be encrypted. This encryption is implemented with Azure Application Gateway with integrated web application firewall (WAF).
  • Use Traefik as the Kubernetes ingress controller.
  • The workload is stateless. No data will be persisted inside the cluster.
  • Azure Network Policy will be enabled for use, even though there's a single workload in one line-of-business.
  • Azure Container Registry will be used for the container image registry. The cluster will access the registry through Azure Private Link.
  • To stay up to date with OS and security patches, have tools to help the restart of nodes when needed.
  • AKS will be integrated with Microsoft Entra ID for role-based access control. This choice is aligned with the strategy of using identity as an operational control plane.
  • Azure Monitor will be used for logging, metrics, monitoring, and alerting to use the existing knowledge of Log Analytics.
  • Azure Key Vault will be used to store all secret information including SSL certificates. Key Vault data will be mounted by using Azure Key Vault with Secrets Store Container Storage Interface (CSI) driver.
  • Two node pools will be used in AKS. The system node pool will be used for critical system pods. The second node pool will be used for the application workload.
  • To make sure the workload is scaled properly, requests and limits will be enforced by assigning quotas for the Horizontal Pod Autoscaling (HPA). AKS cluster autoscaler will be enabled so that additional nodes are automatically provisioned if pods can't be scheduled.