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Azure OpenAI Best Practices for Enterprise Deployments

Deploying Azure OpenAI in enterprise environments requires careful consideration of security, cost, and operational concerns. Over the past year, I've learned several hard-won lessons that I want to share.

1. Security First

Enterprise deployments must prioritize security from day one. Here are the key areas to address:

Network Isolation

Use Private Endpoints for Azure OpenAI to ensure traffic never leaves the Azure backbone. This prevents data exfiltration and reduces attack surface.

Authentication and Authorization

Never use API keys directly in applications. Instead, use Managed Identities with Azure Key Vault. Implement RBAC to control who can access which models and endpoints.

Data Protection

Implement PII detection before data reaches Azure OpenAI. Use Microsoft Presidio or similar tools to redact sensitive information. Consider using data residency controls if operating in regulated industries.

2. Cost Optimization

Token costs can spiral quickly. Here's how to keep them under control:

3. Governance Frameworks

Establish clear policies for AI usage:

4. Observability

Production AI systems need comprehensive monitoring:

5. Error Handling and Resilience

Azure OpenAI can experience rate limits and transient failures. Implement:

Conclusion

Successful enterprise Azure OpenAI deployments require careful planning across security, cost, governance, and operations. Start with these fundamentals, and iterate based on your specific requirements.

The patterns I've described are implemented in Nexus AI Gateway, which provides many of these capabilities out of the box.