Deploying LLMs on Azure: OpenAI vs Machine Learning Endpoints

We design and deploy artificial intelligence systems: from prototype to production-ready solutions. Our team combines expertise in machine learning, data engineering and MLOps to make AI work not in the lab, but in real business.
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Deploying LLMs on Azure: OpenAI vs Machine Learning Endpoints
Medium
~3-5 days
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You developed a RAG application based on LLaMA-3-8B — now you need to serve it to hundreds of users. A local RTX 4090 handles debugging, but production requires a scalable endpoint with latency p99 <500 ms and autoscaling. Azure Machine Learning Managed Online Endpoints provide this capability — but proper configuration includes VNet integration, monitoring, and asynchronous deployment. We have deployed LLMs for 20+ companies, including a large fintech with strict data privacy requirements. A typical project: choosing between Azure OpenAI and Azure ML, configuring vLLM with PagedAttention, setting up RBAC and Private Endpoints. Infrastructure cost savings with irregular loads reach 50% compared to PAYG schemes.

Azure ML endpoint documentation

Problems we solve

Cold start and autoscaling. Without scale_settings configuration, the endpoint does not scale under sudden spikes. We set TargetUtilization, polling interval, and cooldown so that scaling from 1 to 8 instances takes <2 minutes without losing requests.

GPU memory management. OOM errors are a common issue when deploying LLaMA-3-70B. We use vLLM with PagedAttention and gpu_memory_utilization=0.90, as well as Tensor Parallelism across multiple GPUs.

Monitoring and alerting. Without collecting metrics (RequestsPerMinute, Latency P50/P99, GPU Utilization), you learn about problems only from users. We configure Azure Monitor + Application Insights with alert thresholds.

How to reduce latency p99?

For latency p99 <200 ms, we use vLLM with optimizations: max_num_batched_tokens=8192, --tensor-parallel-size 4 on A100. This yields throughput of 1500 tokens/sec for LLaMA-3-8B. In Azure OpenAI with PTU, latency p99 stays around 150 ms at a fixed TPM.

Why is autoscaling important?

Without autoscaling, you overpay for idle resources or lose users during spikes. We configure scale_settings: min_instances=1, max_instances=10 with target_utilization_percentage=70. The cost of these settings is zero — savings with irregular load reach up to 50%.

What is included in the work

  • Requirements audit: load, latency SLA, compliance.
  • Architecture design: service selection, region, GPU type (A100, V100), network isolation.
  • Implementation: writing scoring script (vLLM or custom), configuring deployment configurations, CI/CD scripts.
  • Load testing: measuring latency, throughput, identifying bottlenecks.
  • Documentation: architecture description, operational instructions.
  • Team training: workshop on monitoring and scaling.
  • Support: one month after deployment.

How to choose: Azure OpenAI vs Azure ML Endpoints?

Criterion Azure OpenAI Service Azure ML Managed Endpoints
Available models GPT-4, GPT-4o, GPT-3.5-turbo, Embeddings Any open-source models (LLaMA, Mistral, Qwen)
Management Fully managed — only API key Custom scoring script, environment configuration
Performance PTU for fixed TPM without throttling vLLM + autoscaling; latency p99 <300 ms
Security Azure RBAC, Private Endpoints VNet Integration, Managed Identity, Key Vault
Cost PAYG or PTU — more expensive at high volumes Only GPU VM + storage — cheaper for batch

For production with GPT-4, we choose Azure OpenAI (SLA, PTU). For customization and open-source — Azure ML with vLLM.

Example GPU configurations for popular models

Model GPU vLLM Parameters Expected latency p99
LLaMA-3-8B 1x A100 (80GB) tensor-parallel-size=1, gpu-memory-utilization=0.90 <200 ms
LLaMA-3-70B 4x A100 (80GB) tensor-parallel-size=4, gpu-memory-utilization=0.85 <500 ms
Mistral-7B 1x A100 (80GB) tensor-parallel-size=1, gpu-memory-utilization=0.90 <150 ms

Process of work

  1. Requirements analysis — load, latency SLA, budget, privacy requirements.
  2. Infrastructure design — region selection, GPU type (A100, V100), network isolation.
  3. Implementation — writing scoring script (vLLM or custom), configuring deployment configurations.
  4. Load testing — measuring latency, throughput, identifying bottlenecks.
  5. Deployment and monitoring — endpoint deployment, dashboard and alert configuration.

Timeline: from 2 to 4 weeks depending on complexity. Cost is calculated individually.

Example vLLM configuration for LLaMA-3-8B

model: meta-llama/Meta-Llama-3-8B-Instruct
tensor-parallel-size: 4
gpu-memory-utilization: 0.90
max-num-batched-tokens: 8192

Results and guarantees

  • latency p99 <300 ms at batch size 1 for LLaMA-3-8B on A100.
  • Autoscaling from 1 to 8 instances with custom rules.
  • Savings up to 35% compared to Azure OpenAI PTU for high-load scenarios.
  • 99.9% endpoint availability guarantee with proper configuration.

We guarantee delivery of all configurations, documentation, and training for your team. Support — one month after deployment.

How to order deployment?

Get a consultation: our engineers analyze your task and propose an architecture within one day. Contact us — we will deploy your LLM on Azure from scratch to production in 2–4 weeks. We hold Azure Solutions Architect certification and have 5+ years of MLOps experience.