Skip to content

Palo Alto Firewall Overview

Purpose

This document describes the Palo Alto VM-Series firewall deployment across all three infrastructure environments. The firewalls provide network traffic inspection, zone-based access control, and advanced threat prevention for production, customer-facing, and DR environments.

Deployment Overview

Four Palo Alto VM-Series firewalls are deployed across three isolated network boundaries, each with a dedicated Panorama instance for centralized management.

EnvironmentPlatformRepositoryPanorama Status
Primary productionAzure (azure-infra)azure-infraNo Panorama — managed via local GUI and Terraform
Azure dashboardAzure (azure-infra)azure-infraNo Panorama — managed via local GUI and Terraform
Customer AVD (DDE)Azure (azure-dde-infra)azure-dde-infra✅ Rebuilt (PAN-OS 12.1.2) — firewall reconnection pending reboot
Disaster recoveryAWSaws-infra✅ Rebuilt (PAN-OS 12.1.2) — firewall connected and active

Zone Architecture

All firewalls use a consistent three-zone model across every environment. Traffic between zones is denied by default and must be explicitly permitted by policy.

ZonePurpose
untrustExternal / internet-facing traffic, inbound customer connections
trustInternal production workloads, session hosts, application servers
mgmtFirewall management and infrastructure administration

Zone Traffic Rules

  • untrust → trust: Denied by default. Explicit allow rules required for each permitted flow.
  • trust → untrust: Permitted for outbound traffic per policy. All outbound flows are inspected.
  • mgmt: Strictly restricted to authorized admin sources only. No production traffic traverses the management zone.

Features in Use

App-ID Policies

Palo Alto's App-ID identifies applications based on traffic behavior rather than port and protocol alone. Security policies are written against application identities, not just port numbers. This prevents applications from bypassing controls by running on non-standard ports.

User-ID

User-ID maps network traffic to specific user identities, allowing security policies to be applied per user or group rather than just per IP address. This is particularly relevant in the DDE environment where AVD session traffic can be attributed to individual customer users.

Threat Prevention / IPS

Intrusion Prevention System (IPS) profiles are applied to inspect traffic for known exploits, vulnerability attempts, and malicious payloads. Threat signatures are updated regularly via Palo Alto's threat intelligence feeds.

URL Filtering

URL filtering enforces acceptable use policies and blocks access to known malicious, phishing, and inappropriate content categories. Applied to outbound traffic in the trust zone.

SSL Decryption

SSL/TLS decryption is configured to allow inspection of encrypted traffic. Without decryption, threat prevention and URL filtering cannot inspect HTTPS traffic. Decryption policies define which traffic categories are decrypted and inspected.

DNS Security

DNS Security inspects DNS queries and blocks requests to known malicious domains. This provides an additional layer of protection against command-and-control traffic, malware callbacks, and DNS-based data exfiltration.

Panorama — Current State

AWS Panorama (Operational)

Rebuilt March 2026 following disk space exhaustion on the previous instance. Lessons from the failure are applied to the new deployment.

ConfigurationValue
PAN-OS Version12.1.2 (Marketplace AMI)
System disk81 GB
Log disk100 GB (separate EBS volume, auto-detected)
max-num-images2
max-num-config-backups10
Termination protection✅ Enabled
Log forwardingS3 archive shipping configured

The AWS DR firewall has been re-onboarded and is actively connected to this Panorama instance. Syslog forwarding is configured for all log types (traffic, threat, auth, system, config, HIP match).

Known issue: FQDN object cortex-xdr.paloaltonetworks.com resolves correctly in Azure but not in AWS, causing Cortex XDR traffic to hit the Containment deny rule. Root cause is a DNS gap following departure from Cisco Umbrella. Fix: configure VPC resolver 10.99.0.2 as the DNS server via Panorama device template. Resolution in progress.

DDE Panorama (Rebuilt — Reconnection Pending)

Rebuilt March 2026 with the same lessons applied as the AWS instance.

ConfigurationValue
PAN-OS Version12.1.2 (Marketplace AMI)
Encryption at host✅ Enabled
Termination protection⚠️ Not set in Terraform — verify in Azure portal
Log diskSeparate volume, aggressive local retention
Disk space alert80% threshold configured
Log forwardingS3/Azure Storage archive configured

Outstanding: The DDE firewall is not yet reconnected to this Panorama instance. A reboot of the firewall is required to restore the Panorama connection. Scheduled for next available maintenance window.

Azure Production Panorama (Planned)

No Panorama instance exists for the Azure production environment. Both Azure production and dashboard firewalls are managed directly via local GUI and Terraform.

Roadmap:

  • Phase 2: Deploy new Azure prod Panorama (Target: June/July 2026)
  • Phase 3: Terraform manages Panorama via panos provider (Target: July/August 2026)
  • Migrate Azure firewall configs into Panorama device groups and template stacks

Root cause of original Panorama failures: log storage filled disk with no log rotation or external forwarding configured. All rebuilt instances include separate log disks, aggressive local retention settings, and external log forwarding to prevent recurrence.

Syslog Infrastructure

Each environment has a dedicated syslog receiver VM that collects firewall logs and ships them to S3 archive storage.

EnvironmentSyslog VMStatusS3 Archive
Azure productionsyslogazp (firewall subnet)✅ Operational✅ Shipping
AWS DRsyslogawp (Ubuntu 22.04, t3.small)✅ Operational✅ Shipping
DDEsyslogdde (private subnet)✅ Operational✅ Shipping

syslogawp configuration: Ubuntu 22.04 LTS, t3.small, syslog-ng, IAM instance profile for S3 writes, IMDSv2 enforced, termination protection enabled.

Logging Status Per Firewall

FirewallSyslogArctic Wolf SIEMVLCArchive Forwarding
Azure production✅ Active✅ Active (VLC)✅ Active✅ Via syslog VM
Azure dashboard✅ Active✅ Active (VLC)✅ Active✅ Via syslog VM
DDE customer-facing✅ Active✅ Active (VLC)✅ Active✅ Via syslog VM
AWS DR✅ Active✅ Active (VLC)✅ Active✅ Via syslog VM → S3

All four VLCs confirmed showing active ingestion in Arctic Wolf portal as of March 2026.

Automated Config Backup (Operational)

Daily automated config backups are operational across all four firewalls. See Palo Alto Config Backup & Audit for full architecture.

  • Azure Function (azure-infra) and Lambda (aws-infra) deployed in management subnets
  • PAN-OS XML API export running on daily cron
  • Configs stored in firewall-configs/ path in palo-alto-configs repo
  • paths-ignore applied in CI/CD triggers to prevent deployment loops
  • Change detection alerts via SES operational

Change Management

Firewall policy changes follow the formal change request procedure documented in Firewall Change Request Procedure.

For Panorama-managed firewalls: changes are made in Panorama and pushed to managed devices. For locally-managed firewalls (Azure prod and dashboard): changes are made via local GUI and documented in the relevant Terraform repository.

All significant policy changes trigger a config backup diff alert via the automated backup pipeline, providing an automatic audit trail.

Compliance Relevance

RequirementHow Firewalls Address It
HIPAA §164.312(e) — Transmission SecurityEncrypted traffic inspection via SSL decryption, enforced zone policies
HIPAA §164.312(a) — Access ControlZone-based policies restricting access to ePHI systems
HIPAA §164.308(a)(1) — Risk ManagementThreat prevention and IPS reducing attack surface
SOC2 CC6.6 — Logical AccessZone enforcement preventing unauthorized lateral movement
SOC2 CC6.7 — Data TransmissionTraffic inspection ensuring data flows through approved paths

Known Operational Issues

IssueEnvironmentStatusResolution
DDE firewall not connected to DDE PanoramaDDE⚠️ OpenFirewall reboot required; scheduled for next maintenance window
AWS FQDN cortex-xdr.paloaltonetworks.com not resolvingAWS DR⚠️ OpenConfigure VPC resolver 10.99.0.2 as DNS server via Panorama device template
Azure production Panorama not deployedAzure PROD📋 PlannedTarget June/July 2026 — deploy Panorama and migrate configs from local GUI
DDE Panorama termination protection not set in TerraformDDE⚠️ OpenVerify and enable in Azure portal; add to Terraform if missing

Upgrade Procedures

For Panorama and PAN-OS upgrade procedures, see Panorama Operations Guide.

Key lessons from 2026 rebuilds applied to all instances:

  • Always provision a separate log disk (100 GB+) — system disk exhaustion caused both failures
  • Set aggressive local log retention limits (max-num-images 2, max-num-config-backups 10)
  • Enable external log forwarding before going live
  • Enable termination protection immediately after deployment

Document History

DateChangeAuthor
April 2026Added explicit syslog VM names (syslogazp/syslogdde/syslogawp); added Known Operational Issues section; added DDE Panorama termination protection gap; added Upgrade Procedures sectionKobe
March 2026Updated Panorama status to reflect AWS rebuild (PAN-OS 12.1.2, 100GB log disk, termination protection) and DDE rebuild (reconnection pending); added syslog VM infrastructure table; updated all logging status to reflect VLC coverage complete; updated config backup status to Operational; added AWS FQDN known issueRory
March 2, 2026Updated management table to show actual local-only status, added logging status table per firewallRory
March 2026Added Panorama current state subsection with 4-firewall deployment status and remediation planRory
February 2026Initial draftRory

Internal use only — Cirius Group