A/NZ Azure Guild

Azure Lighthouse

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Agenda

01 Azure Lighthouse Introduction

02 FinOps Capabilities of Lighthouse
03 References

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01 Azure Lighthouse Introduction
• A management service that enables service providers to efficiently manage and govern their customers' Azure
environments.
• No additional costs for using Azure Lighthouse
• Onboarding:
• Pre-built templates for onboarding multi-tenant environments
• A separate deployment for each subscription, however can also deploy templates across multiple subscriptions
• Two resources created when a subscription is onboarded.
1. Registration definition, specifies the details of the Azure Lighthouse offer (the managing tenant ID and the
authorisations that assign built-in roles to specific users, groups, and/or service principals in the managing tenant.
2. Registration assignment, specifies the scope of the registration, i.e., onboarded subscription(s) and/or resource
group(s).

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02 FinOps Capabilities of Lighthouse
By enabling this centralized management approach, Azure Lighthouse indirectly supports some aspects of FinOps.

1. Cross-Tenant Visibility: Azure Lighthouse enables service providers to gain a consolidated view of all their
customer tenants, which can be helpful in understanding the overall cost distribution and identifying cost
optimization opportunities.

2. Role-Based Access Control (RBAC): By utilizing Azure Lighthouse, service providers can efficiently manage
access and permissions across all their customers' Azure subscriptions. Properly configured RBAC helps in
controlling who can access cost data, analyse expenses, and make changes that may impact costs.

3. Cost Management and Billing Visibility: By integrating Azure Lighthouse with Azure Cost Management and
Billing, service providers can provide their customers with cost visibility and insights. This allows them to analyse
costs, set budgets, and implement cost optimization strategies.

4. Reporting and Analytics: Azure Lighthouse can be used to generate and share detailed cost reports and
dashboards with customers. These reports can help customers understand their spending patterns, identify trends,
and make informed decisions to optimize their cloud costs.

5. Policy and Governance Enforcement: Service providers can leverage Azure Policy through Azure Lighthouse to
enforce cost management and governance policies consistently across all customer subscriptions. This ensures
adherence to predefined guidelines for cost control.

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02 FinOps Capabilities of Lighthouse
Continued…
6. Resource Tagging Standardization: By promoting standardized resource tagging practices using Azure
Lighthouse, service providers can facilitate better cost allocation and chargeback models to their customers.

7. Automation and Scripting: Azure Lighthouse enables service providers to automate routine tasks and cost
optimization processes across multiple customer subscriptions. This helps in streamlining operations and reducing
manual efforts.

8. Educational and Consultative Support: While not a direct capability of Azure Lighthouse, service providers can
use this platform to provide guidance and best practices to their customers on FinOps principles, cost optimization
strategies, and ways to manage expenses effectively.

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03 Further References
• https://docs.microsoft.com/en-us/azure/lighthouse/
• https://learn.microsoft.com/en-us/azure/lighthouse/concepts/enterprise
• https://learn.microsoft.com/en-us/azure/lighthouse/samples/policy-reference
• https://learn.microsoft.com/en-us/azure/lighthouse/samples/
• https://learn.microsoft.com/en-us/azure/lighthouse/how-to/onboard-customer
• https://learn.microsoft.com/en-us/azure/lighthouse/concepts/managed-applications
• https://learn.microsoft.com/en-us/azure/lighthouse/concepts/cloud-solution-provider
• https://learn.microsoft.com/en-us/azure/cloud-adoption-framework/ready/landing-zone/design-area/
multi-tenant/lighthouse
• https://www.azurecitadel.com/partner/lighthouse/sp/

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 Thank You

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