I am very excited to announce today general availability of Azure management groups to all our customers. Management groups allow you to organize your subscriptions and apply governance controls, such as Azure Policy and Role-Based Access Controls (RBAC), to the management groups. All subscriptions within a management group automatically inherit the controls applied to the management group. No matter if you have an Enterprise Agreement, Certified Solution Partner, Pay-As-You-Go, or any other type of subscription, this service gives all Azure customers enterprise-grade management at a large scale for no additional cost.
With the GA launch of this service, we introduce new functionality to Azure that allows customers to group subscriptions together so that you can apply a policy or RBAC role to multiple subscriptions, and their resources, with one assignment. Management groups not only allow you to group subscriptions but also allows you to group other management groups to form a hierarchy. The following diagram shows an example of creating a hierarchy for governance using management groups.
Read about it in the Azure blog.