Implementing SRE for a Hybrid Banking Application: Best Practices and Cost-Effective Solutions

Ayush Aarav
3 min readJul 24, 2024

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In today's dynamic IT landscape, ensuring the reliability and resilience of applications is paramount, especially in critical sectors like banking. This post explores how to implement Site Reliability Engineering (SRE) practices for a banking application that runs on a server in a private datacenter, on a VM in Azure Cloud, and on Azure Kubernetes Service (AKS). We'll focus on active monitoring, incident reporting, health status dashboarding, and resiliency, emphasizing cost-effective solutions.

Active Monitoring

Multi-Platform Monitoring with Prometheus and Grafana

Prometheus, an open-source monitoring solution, excels in collecting metrics from various environments. Combined with Grafana for visualization, this duo provides a comprehensive monitoring solution.

Implementation Steps:
1. Prometheus Setup:
- Datacenter Server: Install Prometheus on the server and configure it to scrape metrics from application endpoints.
- Azure VM: Deploy a Prometheus instance or use the same Prometheus server, configured to scrape metrics from the VM.
- AKS: Utilize the Prometheus Operator for Kubernetes to simplify setup and management within AKS.

2. Grafana Integration:
- Deploy Grafana and connect it to Prometheus instances.
- Create dashboards to visualize metrics such as response times, error rates, and resource usage.

3. Alerting:
- Configure Prometheus Alertmanager to send alerts to various channels (email, Slack, etc.) based on predefined thresholds.

Incident Reporting

Centralized Logging with ELK Stack

The ELK (Elasticsearch, Logstash, Kibana) stack offers a robust, cost-effective solution for centralized logging and incident reporting.

Implementation Steps:
1. Log Collection:
- Datacenter Server: Install Filebeat to forward logs to Logstash.
- Azure VM: Set up Filebeat similarly to send logs to the central Logstash instance.
- AKS: Use Fluentd or Fluent Bit to forward container logs to Logstash.

2. Log Processing and Storage:
- Logstash processes incoming logs and sends them to Elasticsearch for storage and indexing.

3. Visualization and Reporting:
- Use Kibana to create dashboards and visualizations for log data.
- Set up alerting in Kibana for specific log patterns indicating potential incidents.

Health Status Dashboarding

Unified Dashboard with Grafana

While Prometheus and Grafana handle metrics, they can also be extended to create health status dashboards.

Implementation Steps:
1. Service Health Checks:
- Implement health check endpoints in your application.
- Configure Prometheus to scrape these endpoints.

2. Grafana Dashboards:
- Create dedicated dashboards showing the health status of various services and components.
- Use Grafana’s alerting features to notify stakeholders of any service health issues.

Resiliency

Multi-Region and Multi-Cloud Strategy

Ensuring application resiliency involves distributing workloads and having failover mechanisms in place.

Implementation Steps:
1. Geographic Distribution:
- Deploy additional instances of your application in different Azure regions.
- Use Azure Traffic Manager to route traffic based on endpoint health and geographic location.

2. Cloud Backup:
- Implement backup and disaster recovery plans using Azure Backup and Azure Site Recovery.

3. Circuit Breaker Pattern:
- Implement the circuit breaker pattern in your application to gracefully handle service failures and prevent cascading issues.

By leveraging open-source tools like Prometheus, Grafana, and the ELK stack, along with Azure's robust cloud services, you can implement a comprehensive SRE solution for your banking application. This approach ensures active monitoring, efficient incident reporting, real-time health status visualization, and enhanced resiliency, all while maintaining cost-effectiveness. As you embark on this journey, remember that continuous improvement and adaptation are key to maintaining the reliability and performance of your applications in a hybrid environment.

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Ayush Aarav
Ayush Aarav

Written by Ayush Aarav

DevOps engineer optimizing CI/CD with Azure DevOps, Terraform, SonarQube. Leading hybrid cloud migrations, enhancing system reliability & driving innovation.

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