Install on Microsoft Azure

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C3 AI deployment options: guidance for enterprise customers

C3 AI offers flexible deployment models. Choosing one affects project timelines, service-level agreements (SLAs) and roles and responsibilities (RACI). C3 AI recommends the SaaS/PaaS subscription for most organizations.

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1. C3 AI SaaS / PaaS subscription (preferred standard option)

A fully hosted and managed service run by C3 AI in Microsoft Azure. You select the Azure region for data residency.

• Lower total cost of ownership: standardized technology and processes enable rapid deployment and efficient support.
• Reduced operational burden: your teams focus on AI applications rather than infrastructure.
• Scalability: C3 AI manages scaling and capacity planning.
• Security and compliance: industry-standard cybersecurity and access controls; C3 AI maintains SOC 2, ISO 27001 and FedRAMP attestations.

Recommended for organizations that want minimal operational overhead and maximum agility.

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2. Customer-hosted, C3 AI-managed deployment

For organizations with non-standard data residency, security or governance requirements. C3 AI deploys into your own Azure Virtual Network (VNet); C3 AI Operations manages deployment, maintenance and support in your environment. Additional charges may apply.

Your responsibilities:

• Grant C3 AI Operations Owner access to a dedicated Azure subscription, or provision a secure VNet using the C3 AI Terraform module and grant access to C3 AI Operations as described in 2. Validate and provide access to the cluster. A resource-group-scoped deployment (Owner on the resource group only) is possible when the Azure AI Platform (Azure AI Foundry / Cognitive Services, enable_ai_platform) is not used and delete protection is turned off. This path gives up delete protection; see 1.1 Run the bootstrap module.
• Manage and troubleshoot infrastructure changes outside C3 AI's control that may affect availability or performance.
• Pay all infrastructure hosting costs in your cloud account.

You retain greater control, and therefore greater responsibility, over your subscription and can limit permissions granted to C3 AI.

Choose this option if you have internal processes requiring direct control over cloud resources, or policies with non-standard local data residency, security or governance requirements.

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Summary table

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Reference architecture

Default layout (VNet 10.0.0.0/22): DMZ 10.0.2.0/24 (Application Gateway v2, WAF, TLS 1.2, autoscale 1-5); AKS 10.0.0.0/23; AKS API 10.0.3.160/28; data 10.0.3.0/27 (PostgreSQL Flexible, PostGIS, pgvector; HA opt-in via pg_ha); tool 10.0.3.32/27 (AI Platform / Foundry private endpoint); storage 10.0.3.128/28 (Blob, CMK, TLS 1.2); Key Vault 10.0.3.144/28 (CMK, purge protected). Egress goes through a NAT gateway with 1-3 public IPs from a /30 prefix. By default the storage account and Key Vault allow public network access, so their subnets hold private endpoints only when that is disabled.

Questions, or a tailored recommendation (for example customer-managed VNet provisioning)? Contact your C3 AI representative.

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Pre-installation preparation

Contact your C3 AI account manager and the C3 AI Center of Excellence (CoE) to obtain:

1. IP Address Allowlist -- The set of C3 AI Operations IP addresses that must be allowed in your firewall and network security group rules (the ip_allowlist variable). These are required for C3 AI to access and operate your deployment.
2. CORS Domain List -- If your installation includes C3 AI Ex Machina, you will need a list of domains to allow for CORS (the storage_cors_domains variable). This enables file upload functionality.
3. C3 AI Cluster Validation Utility -- A validation tool you will run after infrastructure deployment to confirm your environment meets all C3 AI requirements. Obtain this from the CoE before beginning installation.
4. Terraform Module Version -- Confirm the correct version number from the C3 AI Bill of Materials (BOM) for your release.
5. Microsoft Partner ID -- Required by the azurerm provider (partner_id). Contact the C3 AI CoE if you do not know it.

You must also determine the following before starting:

1. Cluster Name -- Your cluster name must follow a specific naming convention. See Appendix A: Default resource naming convention for full details.
   • Dev/QA clusters: stgaz{customerabbreviation} (e.g., stgazcust)
   • Production clusters: prdaz{customerabbreviation} (e.g., prdazcust)
   • Lowercase letters and numbers, must start with a letter, 15 characters or fewer total (only the length is enforced by the module).
2. Azure Region -- The Azure region where the deployment will occur.
3. Azure Subscription ID and Tenant ID -- The dedicated Azure subscription for the C3 AI deployment, and the Microsoft Entra ID tenant that owns it.
4. Object ID of the deploying identity -- The user, group or service principal that assumes the infrastructure creation role (the setup_role_principal_id variable of the bootstrap module).

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Customer-hosted install requirements: checklist

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Summary

For C3 AI to operate in a customer-hosted Azure account, your organization must meet these requirements for the duration of the contract term. Deviations incur additional operational fees. You agree to let C3 AI Operations deploy all required infrastructure using C3 AI deployment automation. This checklist applies only to customer-hosted installations.

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Installation and operational management checklist

1. Temporary Owner access on a dedicated Azure subscription for the bootstrap module. Bootstrap uses it to create the custom roles, managed identities, role assignments and delete-protection policy. One of those roles is the infrastructure creation role ({cluster_name}-c3icrole-01): a custom role scoped to the cluster resource group and assigned to setup_role_principal_id, which the c3cluster module runs as. You may remove these grants after initial setup, but must restore them for new product releases and any later infrastructure change, because the c3cluster module needs the infrastructure creation role to read current state.

2. Three managed identities for ongoing infrastructure management, created by the bootstrap module with the required role assignments:

   Managed Identity	Purpose
   {cluster_name}-c3-mi-01	C3 AI application workloads
   {cluster_name}-c3privileged-mi-01	Privileged C3 AI application workloads
   {cluster_name}-kube-mi-01	Kubernetes and kubelet operations

   Role assignments, all scoped to the cluster resource group (see the modules/bootstrap/iam_account.tf file contained in the Terraform module documentation):

   • c3-mi-01 and c3privileged-mi-01: Storage Account Contributor, Storage Blob Data Contributor, Storage Queue Data Contributor, Monitoring Reader, {cluster_name} FlexPG and {cluster_name} Application Gateway, plus Cognitive Services Contributor and Cognitive Services OpenAI Contributor when enable_ai_platform = true.
   • kube-mi-01: Managed Identity Operator, Network Contributor, Virtual Machine Contributor, Key Vault Crypto User, Key Vault Contributor and {cluster_name} DiskEncryptionSet.

3. Firewall access. If your firewall prevents C3 AI Operations from configuring endpoint access, allow:

   • routing to and from the C3 AI network so metrics, logs and observability data can be received;
   • connectivity to endpoints that enable product functionality (see Endpoint access).

4. A new VNet with at least 1024 IP addresses (/22). The Terraform module creates the VNet and all subnets. AKS node pools are deployed across three availability zones by default (zones = [1, 2, 3]).

5. A static DNS entry for the C3 AI Platform and the deployed Applications (for example cluster.c3.customer.com, application.c3.customer.com).

6. A public certificate with the complete chain, and its private key. Certificates from a public or internal CA are supported. Coordinate with the C3 AI Center of Excellence (CoE) if you use self-signed or internal-CA certificates so the trust chain can be pre-staged in the cluster.

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C3 AI installation requirements for Azure

The C3 Agentic AI Platform integrates with core Azure services such as VMs, VNet and IAM. Install and upgrade requirements, including the Bill of Materials (BOM), are on the documentation site: https://docs.c3.ai/versions-and-compatibility/upgrade-requirements/8.12.

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Required Microsoft Azure cloud services

Configure these to C3 AI specifications as defined in the HashiCorp Terraform scripts.

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Microsoft Azure cloud access requirements

C3 AI Operations accesses customer-hosted deployments exclusively through a privileged access management (PAM) solution: centralized control, zero-trust authentication, full session and command audit, instant grant and revocation. C3 AI Operations deploys and installs the PAM solution. You can request an audit log of access from C3 AI Customer Support.

PAM requirements:

• One-time use of an Azure service principal role to deploy the cluster and for select infrastructure upgrades.
• A service account in your SSO / Active Directory used to manage the platform.
• Azure Lighthouse role assignments for designated C3 AI Operations personnel.
• An additional /28 CIDR block for the C3 Software-Defined Perimeter/Management (SDM) peered VNet.

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Azure subscription

Register these resource providers before deployment:

az provider register --namespace Microsoft.Compute
az provider register --namespace Microsoft.DBforPostgreSQL
az provider register --namespace Microsoft.Network
az provider register --namespace Microsoft.ManagedIdentity
az provider register --namespace Microsoft.KeyVault
az provider register --namespace Microsoft.Storage
az provider register --namespace Microsoft.ContainerService
az provider register --namespace Microsoft.CognitiveServices
az provider register --namespace Microsoft.OperationalInsights
az provider register --namespace Microsoft.Authorization
az provider register --namespace Microsoft.Insights
az provider register --namespace Microsoft.Quota

Verify registration before deploying (each namespace must report Registered):

az provider list --query "[?registrationState=='Registered'].namespace" -o tsv | sort

Registering a provider needs Contributor or Owner on the subscription. Microsoft.Resources is registered by default on every subscription, so it is not listed. Registration is per subscription, not per resource group, so a deployment scoped to a single resource group still needs a subscription administrator to register any missing namespace.

Enable encryption at host (the module sets system_pool_host_encryption and user_pool_host_encryption to true by default, and per-pool enable_host_encryption is available):

az feature register --name EncryptionAtHost --namespace Microsoft.Compute

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Network configuration

The VNet is created by the Terraform module following these requirements. To use an existing network instead, refer to the examples/existing_network/README.md file contained in the Terraform module documentation.

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VNet requirements

The VNet design must cover: subscription, region, sizing, IP ranges, DNS, subnets, security groups.

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VNet region

The Azure region of the deployment (c3_region). Refer to Azure documentation for available regions.

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VNet sizing

Provision a separate VNet per cluster. Sharing a VNet across clusters in the same subscription is not supported.

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VNet IP address ranges

C3 AI does not impose strict netmask limits; the following are highly recommended. The primary VNet defaults to a /22 (vnet_address_space_cidr = ["10.0.0.0/22"]). AKS also needs private CIDRs that do not overlap the VNet. Defaults for the default kubenet network profile (network_profile):

These ranges are internal to Kubernetes and are not carved out of the /22. For Azure CNI Overlay (new clusters only), see the examples/aks-overlay-cni example in the Terraform module documentation.

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DNS

The VNet uses Azure-provided DNS. Private DNS zones created by default: {cluster_name}.c3.internal, {cluster_name}-flex-01.postgres.database.azure.com (PostgreSQL), privatelink.blob.core.windows.net, privatelink.vaultcore.azure.net, privatelink.openai.azure.com.

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Subnets

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Subnet route table

The route table ({cluster_name}-rt-01) is associated with the DMZ, AKS, Data, Tool, Storage Account and Key Vault subnets. The module creates it without routes: outbound internet traffic uses the NAT gateway, and with the default kubenet plugin AKS writes the pod routes, so the AKS identity must be able to update this route table and those routes must not be removed by network maintenance. A 0.0.0.0/0 route to a network appliance would take precedence over the NAT gateway; forced tunneling through a firewall needs a different AKS outbound type, so coordinate with the C3 AI CoE.

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Additional subnet requirements

• Subnets need outbound public access through the NAT gateway ({cluster_name}-natgw-01; 1-3 public IPs via natgw_public_ip_count).
• The NAT gateway is associated with the AKS, Data, Tool, Storage Account and Key Vault subnets.

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Security groups

Default platform-required inbound rules include:

Contact the C3 AI CoE for the rule set required for your deployment.

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Endpoint access

If your firewall prevents C3 AI Operations from configuring endpoint access, allow outbound access to the following. Blocking any prevents installation, upgrades or runtime operations. Contact the CoE for per-endpoint justification.

• conda.anaconda.org - Conda packages
• files.pythonhosted.org - Python packages (PyPI)
• github.com - source hosting
• c3ai.grafana.net - C3 AI Grafana monitoring
• huggingface.co - pre-trained models and datasets
• jfrog.c3.ai - C3 AI Artifactory
• nodejs.org - Node.js runtime
• npmjs.org - Node.js packages
• prdgkemis.c3.ai - MIS access (if required)
• pypi.org, pypi.python.org - Python package index
• registry.c3.ai - C3 AI private container and artifact registry
• repo.anaconda.com, repo.continuum.io - Anaconda repositories
• telemetry.c3.ai - platform telemetry
• vault.c3iot.io - C3 AI HashiCorp Vault

C3 AI Monitoring (standard operational metrics) additionally needs outbound access to:

• fleet-management-prod-014.grafana.net
• prometheus-prod-36-prod-us-west-0.grafana.net
• logs-prod-021.grafana.net

Inbound access must be allowed from these C3 AI Operations addresses:

• 12.226.154.130/32
• 13.214.249.29/32
• 18.136.19.189/32
• 34.231.113.223/32
• 34.232.23.54/32
• 34.238.215.224/32
• 34.82.144.175/32
• 38.77.68.228/32
• 52.48.79.190/32
• 54.76.64.220/32
• 70.35.33.244/32

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Egress (outbound)

• The module adds no outbound NSG rules, so Azure's default AllowVnetOutBound and AllowInternetOutBound rules apply. Keep TCP 443 to 0.0.0.0/0 open (C3 AI infrastructure, cloud data sources, library repositories).

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Ingress (inbound)

• 443: C3 AI application access through the Application Gateway. The DMZ NSG allows 80 and 443 from the ip_allowlist CIDRs and the cluster's public IP prefix.
• Traffic within the VNet is allowed by Azure's default AllowVnetInBound rule, except on the Tool, Storage and Key Vault subnets, whose NSGs allow only 443 from VirtualNetwork.
• 22: SSH to the bastion VM, if you deploy one. The module creates no rule for it.

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HashiCorp Terraform configuration

Terraform scripts create the cloud infrastructure required by the C3 Agentic AI Platform and automate its deployment in your Azure subscription.

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Requirements

• An Azure subscription. Terraform provisions the resource group; you do not need to create one in advance (unless you use existing_resource_group_name).
• A user with the Owner role on the subscription for initial deployment. For a deployment that does not use the AI Platform, Owner on the resource group only is sufficient when the bootstrap module sets existing_resource_group_name, enable_ai_platform = false and enable_delete_protection = false, and the c3cluster module sets resource_group_name to the same resource group and enable_ai_platform = false. This deployment has no delete-protection policy.
• On the machine that runs Terraform:
  • HashiCorp Terraform CLI >= 1.13.0 (AMD64 or ARM64 to match the client), plus TFSwitch to switch versions.
  • Azure CLI, signed in with az login as a user with Owner rights.
• The Azure resource providers listed in Azure subscription registered on the subscription, and the EncryptionAtHost feature enabled.
• Privileges to deploy, operate and delete the infrastructure services: see the docs/SETUP_PRIVILEGES.md file contained in the Terraform module documentation.
• Network access from the Terraform machine to Azure Resource Manager and to the Terraform registry or private registry that hosts the module (the examples use jfrog.c3.ai).

For known issues during upgrades or first apply, see Troubleshooting.

Provider pin used by all modules: hashicorp/azurerm 4.57.0.

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Installation steps

Installation is multi-step because of HashiCorp Terraform and Azure-specific constraints:

1. Create the VNet and required Azure services (bootstrap module, then c3cluster module).
2. Validate the configuration and provide C3 AI Operations access to the cluster (2. Validate and provide access to the cluster).
3. C3 AI Operations completes the installation of the C3 Agentic AI Platform.

Contact your C3 AI account manager for estimated durations and responsibilities for each stage.

Complete the Terraform requirements in HashiCorp Terraform configuration first, and make sure you have obtained everything listed in Pre-installation preparation.

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1. Create the VNet and required Azure services

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1.1 Run the bootstrap module

The bootstrap module creates the IAM roles, custom roles, managed identities and policies needed to configure the VNet and services. Create a new main.tf, replacing CAPITALIZED values.

Cluster naming rules:

• Starts with a lowercase letter; lowercase letters and numbers only (no hyphens, special characters or diacritics).
• At most 15 characters. The module validates length only; the character rules are guidance you must follow.
• Dev/QA: <stg><cloud><customerabbreviation>, for example stgazcust (cloud = az).
• Production: <prd><cloud><customerabbreviation>, for example prdazcust.

module "bootstrap" {
  source                  = "<c3_url>/tf-registry__c3/azure/c3//modules/bootstrap"
  version                 = "VERSION_NUMBER"
  cluster_name            = "CLUSTER_NAME"
  region                  = "REGION"
  setup_role_principal_id = "IDENTITY_OBJECT_ID"

  # Optional. Use an existing resource group instead of creating one.
  # existing_resource_group_name = "EXISTING_RG"

  # Resource-group-scoped deployments (Owner on the RG only) that do not use the
  # AI Platform must also set both of these (each defaults to true):
  # - enable_ai_platform = false skips the subscription-scoped "Purge Cognitive Services" role.
  # - enable_delete_protection = false skips the delete-protection policy definition,
  #   which Azure stores at subscription scope.
  # enable_ai_platform       = false
  # enable_delete_protection = false
}

provider "azurerm" {
  features {}
  partner_id      = "AZURE_PARTNER_ID"
  tenant_id       = "AZURE_TENANT_ID"
  subscription_id = "AZURE_SUBSCRIPTION_ID"
}

terraform {
  required_version = ">= 1.13.0"
  required_providers {
    azurerm = {
      source  = "hashicorp/azurerm"
      version = "4.57.0"
    }
  }
}

Replace the following:

What the bootstrap module creates:

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1.2 Run Terraform commands

From the same directory:

tfswitch
terraform init
terraform plan --out out.plan
terraform apply "out.plan"

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1.3 Run the c3cluster module

The root module coordinates the runtime modules (network, AKS, node pools, PostgreSQL, storage, Key Vault, AI Platform, Log Analytics, firewall). Use a separate directory from the bootstrap module and log in as the principal you set as setup_role_principal_id. Ask your account manager for the C3 Control IPs to replace CIDR_TO_WHITELIST.

module "c3cluster" {
  source       = "<c3_url>/tf-registry__c3/azure/c3"
  version      = "VERSION_NUMBER"
  c3_region    = "REGION"
  cluster_name = "CLUSTER_NAME"

  # Pin the supported versions explicitly so they do not follow the module defaults.
  aks_version = "1.35"
  pg_version  = "15"

  ip_allowlist = [
    "CIDR_TO_WHITELIST",
  ]

  storage_cors_domains = ["https://*.DOMAIN_NAME"]

  # "Default" only for first-time provisioning. Later applies must use "Update" (the module default).
  pg_create_mode = "Default"

  # Optional. Set at creation only (changing it replaces the AKS cluster). Use when
  # MC_<resource_group>_<cluster>_<region> would exceed Azure's 90-character limit.
  # node_resource_group = "rg-short-name"

  # Resource-group-scoped deployments only (bootstrap used existing_resource_group_name):
  # resource_group_name = "EXISTING_RG" # must match bootstrap's existing_resource_group_name
  # enable_ai_platform  = false         # root-module flag, separate from bootstrap's
}

provider "azurerm" {
  features {}
  partner_id      = "AZURE_PARTNER_ID"
  tenant_id       = "AZURE_TENANT_ID"
  subscription_id = "AZURE_SUBSCRIPTION_ID"
}

terraform {
  required_version = ">= 1.13.0"
  required_providers {
    azurerm = {
      source  = "hashicorp/azurerm"
      version = "4.57.0"
    }
  }
}

Replace the following:

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1.3.1 Implement CORS policy for C3 AI Ex Machina

If the installation includes C3 AI Ex Machina, setting storage_cors_domains is all that is needed; it enables file uploads. See the cors_rules.tf template example in the Terraform modules. Then run:

tfswitch
terraform init
terraform plan --out out.plan
terraform apply "out.plan"

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Optional features

Private AKS cluster (private_aks_cluster), API-server VNet integration, GPU node pools, regional replication, no PostgreSQL, storage-account hardening, and disabling storage/OpenAI access keys are covered in the examples/ folder contained in the Terraform module documentation.

Delete protection is on by default (enable_delete_protection = true on the bootstrap module). Its Azure Policy denies deleting the resource group, AKS cluster, storage accounts and containers, Key Vault and PostgreSQL servers, so terraform destroy fails until you disable it. See the DELETE_PROTECTION.md file contained in the Terraform module documentation for teardown steps.

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2. Validate and provide access to the cluster

After the VNet and services are configured, run the C3 AI Cluster Validation Utility and give the results to C3 AI. All checks must pass before C3 AI Operations can deploy the platform; remediate every exception and rerun.

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2.1 Run the C3 AI Cluster Validation Utility

Contact the C3 AI CoE to obtain the utility. Run it to confirm the infrastructure requirements are met and send the output to C3 AI Operations. If it reports the VNet is not ready, remediate and rerun.

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2.2 Provide C3 AI Operations access to the cluster

In addition to the validation output, provide:

Share PostgreSQL credentials and certificates using Azure Key Vault.

To grant C3 AI Operations AKS administration, assign the Azure Kubernetes Service Cluster Admin Role:

az login
az role assignment create \
  --assignee <OBJECT_ID_OF_THE_USER> \
  --role "Azure Kubernetes Service Cluster Admin Role" \
  --scope /subscriptions/<SUBSCRIPTION_ID>/resourceGroups/<C3_CLUSTER_RESOURCE_GROUP>

Replace the following:

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Troubleshooting

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First terraform apply of the c3cluster module fails creating PostgreSQL

Cause: pg_create_mode defaults to Update, which only works on an existing server.

Solution: Set pg_create_mode = "Default" for the first apply. Switch back to Update (or remove it) for every later apply.

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Command not found: terraform

Cause: The binary is not on PATH.

Solution: Install Terraform per HashiCorp's Azure guide, then run tfswitch.

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Plan fails with "The cluster_name must be at most 15 characters long."

Cause: Cluster name too long.

Solution: Shorten it. Also use lowercase letters and numbers only (guidance, not validated).

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AKS creation fails with a resource-group name error

Cause: Azure names the node resource group MC_<resource_group><cluster><region>, limited to 90 characters.

Solution: Set node_resource_group to a shorter name at creation. Changing it later replaces the cluster.

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Service accounts cannot authenticate to Azure with workload identity

Cause: Federated credentials were not created, usually because the OIDC issuer is disabled on the cluster.

Solution: The c3cluster module creates them (aks-sa module) from the cluster's OIDC issuer URL. Confirm enable_oidc_issuer is true (the default), then re-apply the c3cluster module.

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Deployment blocked when creating the public IP prefix

Cause: Policy forbids a public IP prefix. The network module always creates one, and the NAT gateway's public IPs (and the Application Gateway's, by default) come from it.

Solution: Request an exception, or contact the C3 AI CoE before deployment. Switching to the nginx-based private load balancer removes only the Application Gateway's IP, not the prefix.

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EncryptionAtHost errors creating node pools

Cause: Feature not registered on the subscription.

Solution: Run az feature register --name EncryptionAtHost --namespace Microsoft.Compute, then re-register Microsoft.Compute.

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Bootstrap fails with an authorization error on roleDefinitions/write or policyDefinitions/write

Cause: Principal lacks subscription-level permission (resource-group-only Owner). The Purge Cognitive Services role and the delete-protection policy definition are both subscription-scoped.

Solution: If the AI Platform is not used, set existing_resource_group_name, enable_ai_platform = false and enable_delete_protection = false. Otherwise use a subscription Owner.

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Plan or apply fails with AuthorizationFailed (403) after initial setup

Cause: The {cluster_name}-c3icrole-01 assignment for setup_role_principal_id was removed, or Terraform is signed in as a different principal.

Solution: Sign in as setup_role_principal_id. If the assignment is gone, re-apply the bootstrap module as a subscription Owner to restore it.

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Appendix A: Default resource naming convention

Resources follow {cluster_name}-{component}-{sequence}. Defaults can be overridden with Terraform input variables.

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Appendix B: Terraform module reference

See each module directory under modules/ for inputs and outputs.

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Support and escalation

For questions during installation:

• Contact the C3 AI Center of Excellence (CoE). Obtain contact details from your C3 AI account manager.

For critical installation blockers:

• Contact your assigned C3 AI account manager directly.

For post-installation platform issues:

• Contact C3 AI Customer Support. Obtain portal access details from your C3 AI account manager.