Terraform on Azure: Production-Ready 3-Tier Architectures
Unlock seamless automation and deployment of production-grade Azure environments with this comprehensive Terraform guide.
Table of contents
Prerequisites and Tool Installation
1
Azure Account
Ensure you have an active Azure subscription. If not, create a free account.
2
Terraform CLI
Download and install the Terraform CLI from the official HashiCorp website.
3
Azure CLI
Install the Azure CLI to authenticate and manage Azure resources.
4
Text Editor
Choose a suitable text editor or IDE (e.g., VS Code) for writing Terraform code.
Setting Up Azure Credentials and Authentication
Azure CLI Login
Authenticate with Azure using the Azure CLI. Open your terminal and run az login. Follow the prompts to authenticate via your browser.
Service Principal
Create a service principal for Terraform to use. This is a best practice for automation.
Environment Variables
Set the required environment variables, including ARM_CLIENT_ID, ARM_CLIENT_SECRET, ARM_SUBSCRIPTION_ID, and ARM_TENANT_ID.
Organizing Terraform Project Structure
Root Module
Create a root module directory that will contain all Terraform configurations.
Modules Directory
Create a modules directory to store reusable Terraform modules (e.g., network, compute, database).
Environments Directory
Create an environments directory to manage different environments (e.g., dev, staging, prod).
Creating the Root Module Directory
1
Directory Name
Choose a descriptive name for your project (e.g., azure-3tier-prod).
2
Create Directory
Create the directory using the command line: mkdir azure-3tier-prod.
3
Navigate
Navigate into the directory: cd azure-3tier-prod.
Configuring Provider Block for Azure
1
Provider Definition
Create a providers.tf file in the root module directory.
2
Azure Provider
Define the Azure provider with the required authentication details.
Setting Up Remote State Storage in Azure
1
1
Storage Account
Create an Azure Storage Account to store Terraform state files remotely.
2
2
Container
Create a container within the storage account to hold the state file.
3
3
Benefits
Remote state enables collaboration, versioning, and security.
Implementing State Locking Mechanism
1
2
3
1
Prevent Conflicts
State locking prevents concurrent Terraform operations, avoiding state corruption.
2
Azure Storage
Utilize Azure Storage Account's blob locking feature for state locking.
3
Benefits
Enhanced stability and reliability of Terraform deployments.
Defining Backend Configuration
1
2
3
1
Backend Block
Add a backend configuration block to your Terraform code.
2
Storage Details
Specify the Azure Storage Account name, container name, and state file name.
3
Initialization
Run terraform init to initialize the backend.
Creating Resource Groups
Network Architecture Overview
Virtual Network
The core network component.
Subnets
Segment network for each tier.
NSGs
Control traffic flow.
Creating Virtual Network
Configuring Subnet Segmentation
Web Tier Subnet
Dedicated subnet for web servers.
Application Tier Subnet
Subnet for application servers.
Database Tier Subnet
Subnet for database instances with restricted access.
Implementing Network Security Groups
Inbound Rules
Define inbound rules to allow specific traffic (e.g., HTTP/HTTPS to the web tier).
Outbound Rules
Define outbound rules to allow necessary traffic (e.g., web tier to application tier).
Prioritize Rules
Prioritize rules based on security needs and application requirements.
Setting Up Route Tables
1
Default Route
Ensure a default route exists to allow internet access or traffic to other networks.
2
Custom Routes
Create custom routes for specific traffic patterns (e.g., routing traffic through a network virtual appliance).
Configuring Network Peering
Establish Connection
Create peering connections between virtual networks to enable communication.
Configure Access
Configure access control lists (ACLs) to control traffic flow between peered networks.
Use Cases
Ideal for connecting different environments or workloads across virtual networks.
Creating Load Balancers
1
Load Balancer Type
Choose between a public or internal load balancer.
2
Backend Pools
Create backend pools to group VMs for load balancing.
3
Health Probes
Configure health probes to monitor the health of backend VMs.
Setting Up Application Gateway
1
Routing Rules
Define routing rules based on hostnames, paths, and other criteria.
2
SSL Termination
Configure SSL termination for secure communication.
3
Web Tier
Ideal for routing traffic to the web tier based on application-level rules.
Implementing Web Application Firewall
1
1
WAF Policy
Define a Web Application Firewall (WAF) policy to protect against common web exploits.
2
2
Rule Sets
Use pre-configured or custom rule sets to detect and prevent attacks.
3
3
Integration
Integrate WAF with Application Gateway for enhanced security.
Configuring DNS Zones
1
2
3
1
Create Zone
Create an Azure DNS zone for your domain.
2
Records
Add DNS records (A, CNAME, etc.) to point to your application endpoints.
3
Delegation
Delegate your domain to Azure DNS by updating NS records at your domain registrar.
Web Tier Infrastructure Setup
1
2
3
1
Virtual Machines
Create virtual machines or virtual machine scale sets for the web tier.
2
Load Balancer
Configure a load balancer to distribute traffic across web tier instances.
3
Security
Implement network security groups to restrict access to the web tier.
Creating VM Scale Sets for Web Tier
Configuring Web Tier Load Balancing
Load Balancer
Distributes traffic across web server instances.
Health Probes
Monitors the health of web server instances.
Backend Pool
Groups web servers for load balancing.
Implementing Auto-scaling Rules
Setting Up Web Tier Security
Network Security Groups
Control inbound and outbound traffic to the web tier.
Web Application Firewall
Protect against common web exploits.
Regular Security Audits
Ensure compliance with security best practices.
Application Tier Infrastructure
VM Scale Sets
Utilize VM scale sets for scalable application tier instances.
Load Balancer
Configure a load balancer for traffic distribution.
Security
Implement network security groups for enhanced security.
Creating App Tier VM Scale Sets
1
Define Instances
Define the number of instances for the scale set.
2
Configure Scaling
Configure auto-scaling rules based on CPU and memory usage.
3
Placement
Specify the virtual network and subnet for placement.
Configuring App Tier Load Balancing
Internal LB
Use an internal load balancer to distribute traffic.
Pool
Create a backend pool for application servers.
Probe
Configure health probes to monitor server health.
Setting Up Service Discovery
1
Service Registry
Implement a service registry (e.g., Consul, etcd).
2
Register Services
Register application tier services with the registry.
3
Discovery
Use the registry to discover and connect to services.
Implementing App Tier Security
1
NSGs
Use network security groups to control traffic.
2
Microsegmentation
Implement microsegmentation to isolate services.
Database Tier Setup
1
1
Azure SQL
Use Azure SQL Database for managed database services.
2
2
Instances
Create database instances with required configurations.
3
3
Security
Implement robust security measures for database protection.
Creating Azure SQL Instances
1
2
3
1
Deployment
Deploy Azure SQL Database instances in the database subnet.
2
Configure
Configure database settings, including performance tiers and security options.
3
Scaling
Implement scaling rules based on your needs.
Implementing Database Failover Groups
1
2
3
1
Create Group
Create a failover group to enable geographic redundancy.
2
Configure
Configure the failover policy.
3
Add Databases
Add primary and secondary database instances.
Configuring Database Backup
Setting Up Database Security
Encryption
Implement data encryption at rest and in transit.
Firewall
Configure firewall rules to restrict access.
Auditing
Enable auditing to track database activity.
Identity and Access Management
Implementing Role-Based Access Control
Define Roles
Define custom roles with specific permissions.
Assign Roles
Assign roles to users and groups based on their responsibilities.
Least Privilege
Apply the principle of least privilege.
Creating Service Principals
Automation
Use service principals for Terraform automation.
Authentication
Authenticate Terraform with Azure using a service principal.
Security
Grant the service principal the necessary permissions.
Managing Key Vault Integration
1
Create Key Vault
Create an Azure Key Vault to store secrets.
2
Store Secrets
Store database passwords, API keys, and other secrets in Key Vault.
3
Access
Grant Terraform access to Key Vault to retrieve secrets.
Storing Secrets Securely
Don't Hardcode
Avoid hardcoding secrets in Terraform code.
Key Vault
Use Azure Key Vault to store and manage secrets securely.
Access Control
Control access to secrets using RBAC.
Monitoring and Logging Setup
1
Azure Monitor
Utilize Azure Monitor for monitoring and logging.
2
Log Analytics
Set up Log Analytics workspaces.
3
App Insights
Configure Application Insights for application monitoring.
Implementing Azure Monitor
1
Metrics
Collect metrics from Azure resources.
2
Alerts
Create alerts based on metric thresholds.
3
Action Groups
Define action groups to respond to alerts.
Setting Up Log Analytics
1
1
Workspace
Create a Log Analytics workspace.
2
2
Collect Logs
Collect logs from Azure resources.
3
3
Queries
Use Kusto Query Language (KQL) to analyze logs.
Configuring Application Insights
1
2
3
1
Instrumentation
Instrument your application with Application Insights SDK.
2
Metrics
Collect application performance metrics.
3
Analytics
Analyze application performance and identify issues.
Creating Custom Dashboards
1
2
3
1
Choose Metrics
Select relevant metrics to display.
2
Layout
Design the dashboard layout.
3
Share
Share the dashboard with stakeholders.
Disaster Recovery Configuration
Implementing Backup Solutions
Regular Backups
Schedule regular backups.
Replication
Implement data replication.
Setting Up Geographic Redundancy
Creating Recovery Services Vault
Create Vault
Create a Recovery Services vault.
Configure
Configure backup policies and settings.
Protect Resources
Protect Azure resources by associating them with the vault.
Defining Backup Policies
Frequency
Define backup frequency.
Retention
Set retention period.
Schedule
Schedule backup jobs.
Security Implementation
1
Azure Security Center
Utilize Azure Security Center for security assessments.
2
DDoS Protection
Implement DDoS protection.
3
Azure Firewall
Use Azure Firewall to protect your network.
Configuring Azure Security Center
Assessments
Review security assessments.
Recommendations
Implement security recommendations.
Alerts
Monitor security alerts.
Implementing DDoS Protection
1
Enable Protection
Enable DDoS Protection Standard.
2
Configure
Configure DDoS protection settings.
Setting Up Azure Firewall
1
Deploy Firewall
Deploy Azure Firewall in your virtual network.
2
Configure Rules
Configure network and application rules.
Network Security Best Practices
1
1
Segmentation
Segment your network using subnets and NSGs.
2
2
Least Privilege
Apply the principle of least privilege.
Performance Optimization
1
2
3
1
Caching
Implement caching solutions.
2
CDN
Use a content delivery network (CDN).
3
Traffic Manager
Configure Traffic Manager for global load balancing.
Implementing Caching Solutions
1
2
3
1
Azure Cache
Use Azure Cache for Redis.
2
Configure Cache
Configure caching policies.
3
Application Integration
Integrate with your application.
Configuring CDN
Setting Up Traffic Manager
Traffic Manager
Configure Traffic Manager for global load balancing.
Performance Testing Setup
