Azure

Azure Event Grid vs Event Hub: Event-driven architecture guide

October 26, 2025
Sabhat Qureshi
13 min read

Understanding event-driven architecture in Azure

Azure provides multiple services for event-driven architectures, with Event Grid and Event Hubs being the two primary options. While both deal with events, they serve fundamentally different purposes. Understanding their differences is crucial for designing scalable integration solutions. Azure Event Grid and Azure Event Hubs.

Azure Event Grid

Event routing service for reactive, event-driven programming

What is Event Grid?

Event Grid is a fully managed event routing service that enables event-driven architectures. It uses a publish-subscribe model where event publishers send events to Event Grid, which then routes them to subscribers.

Strengths

Strengths
  • Near real-time event delivery
  • Built-in Azure service integration
  • Advanced filtering capabilities
  • Pay per event (very cost-effective)
  • At-least-once delivery guarantee
  • Dead-lettering for failed events
Limitations
  • Not designed for high-throughput streaming
  • Maximum event size: 1 MB
  • No event replay capability
  • 24-hour retry window

Event Grid use cases

  • Azure resource events: React to blob uploads, VM state changes
  • Serverless triggers: Trigger Azure Functions on events
  • Application integration: Connect microservices reactively
  • Webhook distribution: Fan-out events to multiple subscribers

Azure Event Hubs

Big data streaming platform and event ingestion service

What is Event Hubs?

Event Hubs is a highly scalable data streaming platform capable of receiving and processing millions of events per second. It acts as an event ingestor between producers and consumers.

Strengths

Strengths
  • Millions of events per second
  • Event replay from retention period
  • Partitioning for parallel processing
  • Kafka protocol compatible
  • Capture to Azure Storage/Data Lake
  • Schema registry support
Limitations
  • Higher cost for low-volume scenarios
  • More complex to set up
  • Pull-based consumption model
  • No built-in filtering

Event Hubs use cases

  • Telemetry ingestion: IoT device data at scale
  • Log aggregation: Centralized logging from multiple sources
  • Stream processing: Real-time analytics with Stream Analytics
  • Event sourcing: Capture all state changes as events

Head-to-head comparison

AspectEvent GridEvent Hubs
Primary purposeEvent routing and distributionEvent streaming and ingestion
Delivery modelPush to subscribersPull by consumers
Throughput10,000 events/sec per topicMillions/sec
Retention24 hours (retry)1–90 days, configurable
ReplayNoYes
OrderingNo guaranteeWithin a partition
FilteringAdvanced subject/property filtersConsumer-side only
Kafka compatibleNoYes

Dynamics 365 integration patterns

Event Grid with Dynamics 365

Use D365 webhooks to capture entity changes, publish to custom Event Grid topics, fan-out to multiple downstream systems, filter events by entity type.

Event Hubs with Dynamics 365

Stream all entity changes for analytics, build real-time dashboards with Stream Analytics, capture events for historical analysis, event sourcing for audit trails.

Decision framework

Choose Event Grid when:

  • You need reactive, event-driven integration
  • Events should trigger immediate actions
  • You want push-based delivery to subscribers
  • Event volume is moderate (not millions/sec)
  • You need advanced filtering before delivery

Choose Event Hubs when:

  • You need to ingest millions of events per second
  • Event replay and reprocessing is required
  • Order within partitions matters
  • You're building stream processing pipelines
  • Kafka compatibility is needed

Using both together

In many architectures, Event Grid and Event Hubs complement each other:

IoT Devices → Event Hubs (ingestion) → Stream Analytics (process) → Event Grid (alerts) → Functions/Logic Apps (actions)

Best practices

Event Grid best practices

  • Use subject filtering to reduce unnecessary processing
  • Implement dead-letter handling for failed deliveries
  • Design idempotent event handlers (at-least-once delivery)

Event Hubs best practices

  • Choose partition keys wisely for even distribution
  • Use consumer groups for different processing needs
  • Enable Capture for long-term storage

Conclusion

Event Grid and Event Hubs are both essential tools for event-driven architectures in Azure, but they serve different purposes. Event Grid excels at reactive event routing with push-based delivery, while Event Hubs provides high-throughput streaming with event replay capabilities. Understanding their strengths helps you design robust, scalable integration solutions.

Need help with your Dynamics 365 project?

I can help you apply these practices in your own Dynamics 365 environment.