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Azure Monitor is the correct choice as it provides a comprehensive solution for collecting, analyzing, and acting on telemetry from both cloud and on-premises environments. It encompasses a variety of tools and services designed specifically to help organizations monitor their applications, infrastructure, and network performance. Azure Monitor aggregates data from various sources, including resources deployed in Azure and on-premises servers, enabling users to gain insights into the health and performance of their systems.

With Azure Monitor, users can create detailed dashboards, set alerts based on specific metrics, and utilize advanced analytics to identify trends and issues proactively. It also provides integration capabilities with IT service management tools and supports automated responses to alerts, which enhances operational efficiency.

The other options serve different primary functions: Application Insights focuses on application performance monitoring but does not cover the full scope of telemetry across all environments; Compliance Manager is centered on tracking compliance and regulatory requirements rather than telemetry; and Azure Service Health provides insights into Azure service issues and outages but does not encompass comprehensive monitoring of all telemetry data.