Part 4: Governance and Policy at Scale

Apply policy and compliance at scale to Arc resources using Azure Policy, Guest Configuration, Defender for Cloud, and custom initiative templates.

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In previous posts, we covered onboarding resources into Azure Arc. Now we move into what makes Arc truly powerful โ€” applying consistent governance and compliance across hybrid and multicloud environments.

This post focuses on using Azure Policy, Guest Configuration, and Defender for Cloud to manage your Arc-enabled resources at scale.


๐Ÿ›ก๏ธ Why Governance Matters in a Hybrid World

Once you’ve connected non-Azure resources to Azure Arc, simply having visibility isn’t enough. You need to ensure that:

  • Required configurations are enforced
  • Non-compliant systems are flagged (and optionally remediated)
  • Policies span both cloud and on-prem systems
  • You maintain a consistent security baseline

Azure Arc lets you apply the same governance model to machines and clusters wherever they live โ€” on-premises, AWS, or the edge.


๐Ÿ“œ Applying Azure Policy to Arc Resources

With Azure Policy, you can assign controls to:

  • Arc-enabled servers
  • Arc-enabled Kubernetes clusters
  • Arc-registered SQL instances

Common use cases include:

  • Enforcing log collection via Azure Monitor
  • Requiring tags for cost tracking
  • Auditing insecure protocols (e.g. SMBv1, TLS 1.0)
  • Validating OS configurations or software installations

You can assign policies at the subscription or resource group level, just like native Azure VMs.


๐Ÿงฉ Initiative Definitions and Guest Configuration

When enforcing compliance at scale, group policies into initiatives (e.g. CIS benchmarks, ISO27001).

For deeper control over operating systems, use Guest Configuration:

  • Validate local file contents, registry keys, or config files
  • Detect missing updates or misconfigured audit settings
  • Works with Windows and many supported Linux distros

๐Ÿ“ Tip: Guest Configuration requires the machine to have the Azure Policy extension installed โ€” typically done at onboarding or via Policy.


๐Ÿ›ก๏ธ Defender for Cloud Integration

Arc-enabled machines and Kubernetes can be onboarded into Defender for Cloud to enable:

  • Vulnerability assessments
  • Regulatory compliance scoring
  • Just-in-time access recommendations
  • Threat detection (SQL, file integrity monitoring, etc.)

Once onboarded, Arc resources appear just like native Azure machines in the Defender portal.


๐Ÿงช Example: Apply a Policy to Enforce Monitoring

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az policy assignment create \
  --name "Require-Log-Analytics" \
  --policy "/providers/Microsoft.Authorization/policyDefinitions/xxx" \
  --scope "/subscriptions/your-sub-id/resourceGroups/Arc-Servers"
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