Azure Event Grid is a fully managed event routing service designed for building event-driven architectures. It allows applications and services to react to events in real time with minimal overhead. Event Grid uses a publish-subscribe model, making it highly efficient for scalable IoT scenarios. While not an MQTT broker itself, it integrates with MQTT-based services to process device-generated events. It connects seamlessly with Azure Functions, Logic Apps, and other cloud services. This makes it a critical component for orchestrating IoT workflows in the Azure ecosystem.