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Level 3: Managed

Last updated: 2026-07-27

List of references

At Level 3, the application is operated as a production service. Teams use observability, incident response, governance, and performance controls to maintain reliable and compliant behavior as traffic, models, and data change.

Create a Log Analytics workspace

Source: Log Analytics workspace architecture.

Production operating model

Area Managed practice
Monitoring Centralize application, model, dependency, and security telemetry in Azure Monitor and Log Analytics.
Alerts Alert on elevated errors, latency, safety findings, cost anomalies, and quality regressions.
Governance Enforce approved regions, network configuration, tagging, and identity controls with Azure Policy.
Performance Track latency, throughput, capacity, token use, caching effectiveness, and model endpoint health.
Incident response Define owner, severity, mitigation, rollback, and communication paths for model-related incidents.

Monitoring signals

  • Service health: availability, error rates, throttling, and dependency health.
  • Experience: completion latency, abandoned requests, user feedback, and fallback rate.
  • Model behavior: groundedness, relevance, safety, and prompt-injection findings.
  • Cost: token usage, requests by model, supporting compute, and budget variance.
  • Change: release version, prompt version, grounding index version, and evaluation set version on each request where appropriate.

Important

Logging should not become a data-exposure path. Minimize captured prompt and response data, apply access controls and retention policies, and mask or exclude sensitive data where required.

Advance to Level 4: Optimized when the managed baseline is stable enough to support continuous, evidence-based optimization.