Microsoft AzureDevelopmentAzureBeginner24 min read

What Does Azure Event Grid Mean?

Also known as: Azure Event Grid, event driven architecture, AZ-204, event routing, publish subscribe

Reviewed byJohnson Ajibi· Senior Network & Security Engineer · MSc IT Security
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Quick Definition

Azure Event Grid is a service that connects different apps and services together. When something happens in one place, like a new file being uploaded or a database being updated, Event Grid sends a notification to other places that need to know. It helps systems react instantly without checking for changes constantly. Think of it as a smart notification system for cloud applications.

Must Know for Exams

Azure Event Grid is a key topic in the AZ 204 Developing Solutions for Microsoft Azure exam. The exam objectives explicitly include implementing event based solutions, and Event Grid is one of the primary services covered. Candidates are expected to understand how Event Grid fits into the broader Azure messaging ecosystem alongside Service Bus, Event Hubs, and Storage Queues.

Exam questions often test the differences between these services, particularly when to use Event Grid versus Event Hubs. Event Grid is typically the right choice for reactive event driven scenarios with low latency and simple filtering, while Event Hubs is better for high throughput data ingestion and streaming analytics. The exam also covers Event Grid topics such as system topics, custom topics, event subscriptions, and event schemas.

You need to know how to configure event subscriptions with filters, including subject filtering and advanced filtering. Questions often present a scenario where an application needs to react to specific events, and you must choose the correct filter configuration. Another common exam area is authentication and authorization for Event Grid endpoints.

You may be asked about using managed identities, SAS tokens, or webhook validation to secure event delivery. The exam also tests your understanding of retry policies, dead lettering, and event delivery guarantees. You might see a scenario where events are occasionally lost because a subscriber is unavailable, and you need to configure dead lettering to capture those failures.

Additionally, the exam expects you to know about integrating Event Grid with other Azure services like Azure Functions, Logic Apps, and Automation Accounts. Architecture questions may ask you to design a serverless workflow using Event Grid to process data. Understanding the CloudEvents schema and its benefits for interoperability is also relevant.

To prepare, you should practice creating event subscriptions in the Azure portal, using Azure CLI, and through ARM templates. Be familiar with the Azure Event Grid SDKs for .NET and other languages.

Sample questions on the exam might ask you to identify the correct order of operations when setting up an event driven solution, or to troubleshoot why an event was not delivered to a subscriber. By mastering Event Grid, you demonstrate competence in building modern, event driven cloud applications, which is a core skill for Azure developers.

Simple Meaning

Imagine you live in a busy apartment building with a mailroom. Every day, packages and letters arrive for different residents. Without a system, everyone would have to check the mailroom every hour to see if anything arrived for them.

That would be exhausting and inefficient. Instead, the building hires a mail clerk. When a package arrives for you, the clerk brings it directly to your door and rings the bell. You only get notified when something relevant to you arrives.

Azure Event Grid works exactly like that mail clerk, but for cloud applications. In the cloud, many different things can happen, which are called events. A new file might be uploaded to storage, a virtual machine might start up, or a database record might be updated.

These events happen constantly. Without Event Grid, each application that cares about these events would have to keep asking, Did anything happen yet? This is called polling, and it wastes time and resources.

Event Grid changes this by using a publish-subscribe model, often called pub-sub. The services that produce events, like Azure Storage or Azure SQL Database, are the publishers. They tell Event Grid whenever something happens.

Services that want to know about events, like a function app or a webhook, are the subscribers. They tell Event Grid what kinds of events they care about. When a publisher reports an event, Event Grid checks its list of subscribers and sends the event to everyone who needs it.

This happens in near real time, usually within milliseconds. Event Grid can handle millions of events per second and deliver them reliably across different Azure regions. It also supports retry policies in case a subscriber is temporarily unavailable.

This makes Event Grid a central nervous system for cloud architecture, enabling real-time automation, reactive workflows, and event-driven computing. By using Event Grid, developers can build systems that are more responsive, scalable, and cost effective.

Full Technical Definition

Azure Event Grid is a fully managed event routing service that operates on a publish-subscribe model. It is designed to handle high throughput event delivery with low latency, typically under one second. Event Grid acts as a central event broker, decoupling event publishers from event subscribers.

Publishers emit events, and Event Grid routes those events to subscribers that have expressed interest through topic subscriptions. Events are structured messages that describe what happened, including metadata such as the event type, subject, event time, and data payload. Event Grid supports two main types of topics: system topics and custom topics.

System topics are automatically created by Azure services when they are configured to emit events. For example, when you enable Event Grid on an Azure Storage account, a system topic is created for that storage account. Custom topics are user defined and are used for publishing custom events from your own applications.

Subscribers register their interest in events by creating event subscriptions. An event subscription is a configuration that specifies a topic, a filter, and an endpoint. Filters can be based on event type, subject prefix or suffix, and advanced conditions using JSON path expressions.

Endpoints can be several Azure services, including Azure Functions, Logic Apps, Event Hubs, Service Bus, WebHooks, and Hybrid Connections. Event Grid uses a push model, meaning it actively sends events to subscribers as soon as they are published. This differs from pull based systems like Azure Event Hubs, where consumers poll for messages.

Delivery is guaranteed with at least once semantics, meaning each event is delivered at least once. To handle transient failures, Event Grid implements automatic retries with exponential backoff and configurable retry policies. Dead lettering is supported, where events that cannot be delivered after all retries are sent to a storage blob container for later analysis.

Event Grid also supports event schemas, including the Event Grid event schema, CloudEvents schema, and custom schemas. The CloudEvents schema is an industry standard that promotes interoperability across cloud providers. Security is handled through managed identities, shared access signatures, and Azure RBAC.

Event Grid integrates deeply with Azure Monitor, providing metrics and diagnostic logs for tracking event delivery, latency, and failures. In real IT environments, Event Grid is used for serverless architectures, event driven microservices, infrastructure notifications, and integrating third party SaaS applications through webhooks. It is a core component of Azure’s eventing ecosystem, enabling real time automation without the need for polling or custom message brokers.

Real-Life Example

Think of a large airport with hundreds of flights arriving and departing every day. The airport has a central flight information display system. When a flight status changes, like a gate assignment, a delay, or a boarding call, that change needs to be communicated to many different places.

Passengers need updated screens, airline staff need notifications, baggage handlers need to know which carousel to use, and security checkpoints need to adjust flow. Without a central system, each of these groups would have to constantly check with the airline control tower to see if anything changed. That would be chaotic.

Instead, the airport uses a central event distribution system. When the control tower updates a flight’s status, it publishes that event to the central system. The central system then sends the update to all the screens, staff terminals, and baggage systems that have registered for that flight’s updates.

This system works exactly like Azure Event Grid. In this analogy, the control tower is the event publisher. Each flight status change is an event. The central distribution system is Event Grid itself.

The screens in the terminal, the airline staff’s tablets, and the baggage handling computers are the subscribers. They have told the central system that they want to receive updates for specific flights or categories of flights. When a flight is delayed, Event Grid receives that event and immediately pushes it to all subscribers that care about that flight.

This allows everyone to react instantly. For example, the gate agent can announce the delay, the baggage handlers can reroute luggage, and the passenger apps can send alerts. The mapping is straightforward.

The publisher is any Azure service like Azure Storage, IoT Hub, or a custom application. The event is any significant change, like a blob being created, a device sending telemetry, or a database row being updated. The subscribers are the services that need to act on those changes, like an Azure Function that processes the new blob or a Logic App that sends a notification.

Event Grid ensures that every relevant subscriber receives the event in near real time, enabling a coordinated and automated response across the entire cloud environment.

Why This Term Matters

Azure Event Grid matters because it enables real time event driven architectures that are fundamental to modern cloud applications. In traditional IT setups, systems often relied on polling, where an application repeatedly checks a source for changes. Polling is inefficient because it consumes CPU cycles, network bandwidth, and storage I/O, especially when changes are infrequent.

It also introduces latency, because the application only discovers changes at the next polling interval. Event Grid eliminates polling by using a push model, where events are delivered immediately as they happen. This dramatically reduces latency and resource consumption.

In real IT work, Event Grid is used to automate infrastructure responses. For example, when a new virtual machine is created in Azure, you can configure Event Grid to trigger a runbook that installs monitoring agents or applies security policies. When a blob is uploaded to storage, Event Grid can trigger a function that processes the file, generates a thumbnail, or updates a database.

This allows for serverless workflows where you pay only for the compute time used during the event processing. Event Grid also supports hybrid and multi cloud scenarios through webhooks. You can subscribe an on premises system or a service running in another cloud to receive events from Azure.

This makes Event Grid a critical integration tool for enterprises with diverse environments. From a cybersecurity perspective, Event Grid can be used to react to security events. For instance, when Azure Security Center detects a threat, it can publish an event that triggers a Logic App to isolate the affected resource or notify the security team.

Event Grid’s built in retry and dead lettering capabilities ensure that events are not lost, which is crucial for compliance and auditing. Without Event Grid, building such reactive systems would require custom message brokers, complex queuing infrastructure, and significant development effort. By providing a fully managed, highly scalable event routing service, Event Grid allows IT teams to focus on business logic rather than plumbing.

It is a foundational component for building resilient, responsive, and cost efficient cloud solutions.

How It Appears in Exam Questions

In the AZ 204 exam, questions about Azure Event Grid appear in several formats. One common type is the scenario question. For example, you are given a scenario where a company uploads images to Azure Blob Storage, and each new image must be automatically resized and a thumbnail stored in a separate container.

You are asked to choose the best Azure service to trigger this workflow. The correct answer is Event Grid, because it can subscribe to blob created events and trigger an Azure Function that performs the resizing. Another question pattern involves comparing Event Grid with other messaging services.

The question might list several requirements: low latency, high throughput, simple filtering, and the ability to react to Azure service events. You need to select Event Grid over Event Hubs or Service Bus. A third pattern is configuration questions.

For instance, you are shown a code snippet or ARM template that creates an event subscription, and you must identify what is missing, such as an endpoint, a filter, or a topic. Troubleshooting questions also appear. You might be told that events are not being delivered to a webhook endpoint, and you need to identify the cause.

Common issues include incorrect endpoint URL, endpoint not validating the handshake, or firewall blocking the request. You would need to verify the webhook validation process, which requires the endpoint to return a validation code. Architecture questions ask you to design an event driven solution.

For example, you need to design a system where an e commerce application publishes order placed events, and multiple downstream services like inventory, billing, and shipping need to receive those events. You should recognize that Event Grid with multiple event subscriptions on a custom topic is the right approach. Filtering questions present a scenario where only specific events should trigger a subscriber.

For example, only blob created events for files with a .jpg extension in a specific container. You need to configure subject filtering with a subject prefix and suffix. Another question type tests your knowledge of dead lettering.

You might be asked what happens to events that cannot be delivered after all retries. You should know that they are sent to a dead letter destination, typically a storage container. Finally, security questions appear around authentication.

You might need to choose between managed identity and SAS token for authenticating an Event Grid subscription to a webhook. Understanding these question patterns helps you focus your study on the most testable aspects of Event Grid.

Practise Azure Event Grid Questions

Test your understanding with exam-style practice questions.

Practise

Example Scenario

A company called SmartRetail runs an e commerce platform on Azure. Customers place orders through a web application, and each order is stored as a JSON file in Azure Blob Storage. The company needs to automate two tasks whenever a new order is placed: first, the order must be sent to a fulfillment center for packing and shipping, and second, the customer must receive a confirmation email.

Without a system like Azure Event Grid, the developers would have to write custom code that periodically checks Blob Storage for new files, then sends the order details to the fulfillment API and triggers the email service. This polling approach introduces delay and wastes resources. Instead, the developers set up Azure Event Grid.

They enable Event Grid on the Blob Storage account, which automatically creates a system topic for blob created events. They then create two event subscriptions on that topic. The first subscription has an endpoint of an Azure Function that processes the order JSON and calls the fulfillment center’s API.

The second subscription has an endpoint of a Logic App that sends a confirmation email to the customer. Each subscription includes a filter so that only events for the orders container are delivered. When a customer places an order, the blob is created in storage.

Event Grid detects the blob created event and, within milliseconds, pushes the event to both the Azure Function and the Logic App simultaneously. The Function processes the order for fulfillment, and the Logic App sends the email. The entire process happens automatically without any polling or manual intervention.

This scenario demonstrates how Event Grid enables real time, event driven automation, making the system more responsive and efficient.

Common Mistakes

Confusing Event Grid with Azure Event Hubs and using the wrong service for reactive events.

Event Hubs is designed for high throughput data ingestion and streaming analytics, not for routing discrete events to multiple subscribers. Using Event Hubs for simple reactive workflows adds unnecessary complexity and cost.

Use Event Grid when you need to react to discrete events from Azure services or custom sources with low latency and simple filtering. Use Event Hubs when you need to ingest large streams of data for analytics.

Thinking that Event Grid can deliver events directly to on premises systems without a webhook.

Event Grid supports webhooks as endpoints, but the webhook must be publicly accessible or accessible via a private endpoint. On premises systems behind a firewall may require a relay or a public endpoint to receive events.

For on premises subscribers, use Azure Relay or a webhook that is exposed through a secure gateway. Alternatively, use Azure Functions with a hybrid connection to bridge the gap.

Assuming that Event Grid guarantees exactly once delivery.

Event Grid guarantees at least once delivery, but duplicates can occur due to retries or network issues. Exactly once delivery is not guaranteed.

Design your subscribers to be idempotent, meaning they can handle receiving the same event multiple times without causing errors. For example, use an idempotency key to deduplicate events.

Believing that Event Grid can store events for long periods.

Event Grid is a real time event routing service. It delivers events quickly and does not provide long term storage. Events that are not delivered after retries are dead lettered, but they are not retained indefinitely.

If you need to store events for replay or auditing, configure dead lettering to a storage account. For long term event persistence, consider using Event Hubs with Capture or Service Bus with sessions.

Thinking that event subscriptions are automatically created for all Azure services.

Event subscriptions are not created automatically. You must explicitly create them and configure the topic, filter, and endpoint. Even with system topics, you need to create an event subscription to start receiving events.

When you want to receive events from an Azure service, navigate to that service’s Event Grid blade in the portal, or use CLI commands to create a system topic and then create an event subscription.

Exam Trap — Don't Get Fooled

A question describes a scenario where an application needs to process a stream of IoT sensor data from thousands of devices. The options include Event Grid and Event Hubs. Many learners choose Event Grid because it is simpler, but that is wrong.

Read the scenario carefully. If it mentions processing a stream of data, thousands of events per second, or analytics, choose Event Hubs. If it mentions reacting to specific events like a file being created or a resource being deleted, choose Event Grid.

Remember that Event Grid is for event routing, not data streaming.

Commonly Confused With

Azure Event GridvsAzure Event Hubs

Azure Event Hubs is designed for high throughput data ingestion and streaming analytics. It handles millions of events per second and supports multiple consumers reading the same stream. Event Grid is for routing discrete events to multiple subscribers with low latency and simple filtering. Event Hubs is a data buffer; Event Grid is a notification system.

Use Event Hubs to collect telemetry from thousands of wind turbines for real time performance analysis. Use Event Grid to send a notification when a turbine’s temperature exceeds a threshold.

Azure Event GridvsAzure Service Bus

Azure Service Bus is a message broker for enterprise messaging, supporting queues and topics for ordered, guaranteed delivery. It is designed for command and control scenarios, such as sending orders between microservices. Event Grid is for event notifications where subscribers react to occurrences. Service Bus supports competing consumers; Event Grid uses a push model to all subscribers.

Use Service Bus to send a command to a microservice to process a specific order. Use Event Grid to notify all services that an order has been placed, allowing them to react independently.

Azure Event GridvsAzure Storage Queues

Azure Storage Queues provide a simple queuing service for message passing between components. They are cost effective but have higher latency and limited throughput compared to Event Grid. Storage Queues require polling, while Event Grid pushes events. Event Grid is better for near real time scenarios.

Use Storage Queues to decouple a web application from a background worker that processes uploaded files, if latency is not critical. Use Event Grid to instantly trigger a function when a new file is uploaded.

Azure Event GridvsAzure Logic Apps (without Event Grid)

Logic Apps can use triggers that poll various services, like checking a SharePoint folder for new files. Event Grid provides a push based trigger that is more efficient and real time. Event Grid can also trigger Logic Apps, but Logic Apps alone do not route events to other services.

A Logic App can be configured to run every minute and check an FTP site for new files. With Event Grid, that Logic App is triggered instantly when a file is uploaded, eliminating the one minute delay.

Step-by-Step Breakdown

1

Event Occurrence

Something happens in an Azure service or custom application that is an event source. For example, a blob is created in Azure Storage, a virtual machine is stopped, or a custom application publishes an event. This event is the trigger for the entire process.

2

Event Publishing

The event source sends the event to an Event Grid topic. If the source is an Azure service like Storage, it uses a system topic automatically. For custom applications, you create a custom topic. The event includes metadata like event type, subject, time, and data payload.

3

Event Routing

Event Grid receives the event and evaluates all event subscriptions associated with the topic. Each subscription has filters that determine whether the event should be delivered. Filters can check event type, subject prefix/suffix, or advanced conditions. Only matching events proceed to delivery.

4

Delivery Attempt

Event Grid pushes the event to the subscriber endpoint specified in the subscription. This is a push model, meaning Event Grid actively sends the event. The endpoint can be an Azure Function, Logic App, webhook, Event Hubs, Service Bus, or other supported services.

5

Acknowledgment and Retry

The subscriber must acknowledge receipt of the event. For HTTP endpoints like webhooks and Functions, the subscriber returns an HTTP 200 status code. If the subscriber does not acknowledge within a timeout, or returns an error, Event Grid retries according to a configurable policy. Retries use exponential backoff.

6

Dead Lettering (if needed)

If the event cannot be delivered after the maximum number of retries, it is sent to a dead letter destination. This is typically a storage blob container. This ensures no event is lost forever, and administrators can analyze undelivered events later.

7

Event Consumption

The subscriber processes the event according to its business logic. For example, an Azure Function reads the event data and performs an action like resizing an image. The consumption step is decoupled from the event publishing, allowing independent scaling and maintenance.

Practical Mini-Lesson

Azure Event Grid is a powerful service for building event driven architectures on Azure. As a professional, you need to understand not only what it does, but how to implement it effectively in real world solutions. Start by identifying your event sources and subscribers.

Event sources can be Azure services like Blob Storage, Resource Groups, Azure IoT Hub, or your own custom applications. Subscribers can be Azure Functions, Logic Apps, Automation Accounts, Event Hubs, Service Bus, or any publicly accessible webhook. When designing an event driven solution, choose the right topic type.

Use system topics for Azure service events, which are automatically created when you enable Event Grid on that service. Use custom topics for events from your own applications. Custom topics give you full control over the event schema and can be secured with SAS tokens or keys.

Configuring event subscriptions is where most of the work happens. You must specify the endpoint and any filters. Filters are critical for reducing noise. For example, if you only care about blobs created in a specific container with a .

csv extension, use a subject filter with a prefix of /blobServices/default/containers/mycontainer/blobs/ and a suffix of .csv. Advanced filters allow you to filter on numeric ranges, bool values, or array membership.

Testing and debugging Event Grid solutions requires familiarity with the Azure portal, CLI, and SDKs. You can monitor delivery metrics in Azure Monitor, such as the number of published events, delivery success rate, and latency. Diagnostic logs can be enabled to capture detailed information about event delivery attempts and failures.

Common issues include webhook endpoints not returning a validation code, firewall rules blocking Event Grid’s IP addresses, and incorrect filter configurations. Always ensure your subscriber is idempotent, as Event Grid does not guarantee deduplication. For high availability, consider deploying Event Grid in multiple regions or using geo replication features.

For security, use managed identities when possible to avoid storing credentials. Event Grid integrates with Azure RBAC, so you can control who can publish events and create subscriptions. Understand the pricing model, which is based on the number of operations (publish and delivery).

Filtering reduces costs by minimizing the number of events delivered. Professionals also need to know how Event Grid fits into the larger Azure ecosystem. It is often used in conjunction with Azure Functions for serverless compute, Logic Apps for workflows, and Azure Monitor for observability.

Event Grid is a core component of the Azure Event Driven Architecture, alongside Durable Functions and Service Bus. By mastering Event Grid, you can build systems that react to changes in real time, reduce operational overhead, and scale effortlessly. For the AZ 204 exam, focus on hands on practice with creating topics, subscriptions, and filters, and understand the differences between Event Grid and other messaging services.

Memory Tip

Remember Event Grid as the Event Distributor. It publishes events to subscribers that have subscribed to the topic, using filters to deliver only relevant notifications.

Covered in These Exams

Current Exam Context

Current exam versions that test this topic — use these objectives when studying.

Related Glossary Terms

Frequently Asked Questions

What is the difference between an event and a message in Azure Event Grid?

An event is a discrete notification that something has happened, like a file being created. A message is a unit of data that is sent to a queue or topic to be processed. Event Grid routes events to subscribers, while message brokers like Service Bus handle messages for command and control scenarios.

Can Azure Event Grid deliver events to on premises systems?

Yes, Event Grid can deliver events to on premises systems if the system exposes a publicly accessible webhook endpoint. For systems behind a firewall, you can use Azure Relay or an Azure Function with a hybrid connection to bridge the gap.

How does Event Grid ensure events are not lost?

Event Grid uses at least once delivery semantics and automatic retries with exponential backoff. If delivery fails after all retries, events can be dead lettered to a storage container for later analysis. However, duplicates can occur, so subscribers should be idempotent.

What is a system topic in Azure Event Grid?

A system topic is a topic that is automatically created by Azure when you enable Event Grid on a supported Azure service, like Blob Storage or Azure Resource Group. It simplifies event publishing by managing the topic for you.

Can I use Event Grid with third party applications?

Yes, Event Grid supports custom topics and webhook endpoints, so you can publish events from your own applications and deliver them to third party services that accept webhooks. This enables integration with SaaS platforms and external systems.

What is the maximum event size Event Grid can handle?

Event Grid supports events up to 1 MB in size. If your event payload is larger, you should store the payload in a storage account and include a reference URL in the event.

How does Event Grid authenticate webhook endpoints?

When you create an event subscription with a webhook endpoint, Event Grid sends a validation request to the endpoint. The endpoint must respond with a specific validation code to confirm ownership. This handshake ensures that only authorized endpoints receive events.

Summary

Azure Event Grid is a fundamental service for building event driven architectures on Microsoft Azure. It acts as a central event router that decouples event publishers from event subscribers, enabling real time reactions without polling. The service handles millions of events per second with low latency and supports a wide variety of Azure and custom endpoints.

For certification exams like AZ 204, you need to understand when to use Event Grid versus other messaging services such as Event Hubs and Service Bus. You must be proficient in configuring system and custom topics, event subscriptions with filters, and webhook validation. Common mistakes include confusing Event Grid with Event Hubs, assuming exactly once delivery, and neglecting dead lettering for undelivered events.

Practical implementation involves ensuring subscriber idempotency, using managed identities for security, and monitoring delivery metrics through Azure Monitor. Event Grid is a key enabler for serverless workflows, infrastructure automation, and real time data processing. By mastering this service, you enhance your ability to design scalable, responsive, and cost effective cloud solutions.

For the exam, focus on hands on practice and understanding the nuances of event delivery, filtering, and integration with other Azure services.