Fix retry amplification storm in Azure Monitor OpenTelemetry exporter

During sustained 429 throttling, failed telemetry accumulates as blob
files in local storage. On recovery, _transmit_from_storage() drained
all blobs in a tight loop, creating a burst of requests that could
immediately re-trigger throttling.

Changes:
- Cap storage drain to 10 blobs per invocation (_MAX_STORAGE_DRAIN_BATCH)
  to spread retry load across export cycles
- Stop draining immediately when a retryable failure occurs, since the
  service is still under pressure
- Add tests for both drain cap and early termination behaviors

Author: hectorhdzg

sdk/monitor/azure-monitor-opentelemetry-exporter/azure/monitor/opentelemetry/exporter/export/_base.py

@@ -210,10 +210,18 @@ def __init__(self, **kwargs: Any) -> None:
             # Collect customer sdkstats metrics
             collect_customer_sdkstats(self)
 
+    # Maximum number of blobs to drain from storage per invocation.
+    # Prevents a retry storm when many blobs have accumulated during
+    # sustained throttling (e.g. 429).
+    _MAX_STORAGE_DRAIN_BATCH = 10
+
     def _transmit_from_storage(self) -> None:
         if not self.storage:
             return
+        drained = 0
         for blob in self.storage.gets():
+            if drained >= self._MAX_STORAGE_DRAIN_BATCH:
+                break
             # give a few more seconds for blob lease operation
             # to reduce the chance of race (for perf consideration)
             if blob.lease(self._timeout + 5):
@@ -223,11 +231,17 @@ def _transmit_from_storage(self) -> None:
                     result = self._transmit(envelopes)
                     if result == ExportResult.FAILED_RETRYABLE:
                         blob.lease(1)
+                        # Stop draining: the service is still under
+                        # pressure.  Remaining blobs will be retried on
+                        # the next successful export cycle, avoiding a
+                        # burst of requests that re-triggers throttling.
+                        break
                     else:
                         blob.delete()
                 else:
                     # If blob.get() returns None, delete the corrupted blob
                     blob.delete()
+                drained += 1
 
     def _handle_transmit_from_storage(self, envelopes: List[TelemetryItem], result: ExportResult) -> None:
         if self.storage:

sdk/monitor/azure-monitor-opentelemetry-exporter/tests/test_base_exporter.py

@@ -423,6 +423,60 @@ def test_transmit_from_storage_blob_get_returns_none(self):
         blob_mock.delete.assert_called_once()  # Corrupted blob should be deleted
         transmit_mock.assert_not_called()  # No transmission should occur
 
+    def test_transmit_from_storage_stops_on_retryable_failure(self):
+        """Test that _transmit_from_storage stops draining blobs when
+        a retryable failure (e.g. 429) occurs, preventing retry storms."""
+        exporter = BaseExporter()
+        exporter.storage = mock.Mock()
+        envelope_mock = {"name": "test", "time": "time"}
+        # Create three blobs in storage
+        blob1 = mock.Mock()
+        blob1.lease.return_value = True
+        blob1.get.return_value = [envelope_mock]
+        blob2 = mock.Mock()
+        blob2.lease.return_value = True
+        blob2.get.return_value = [envelope_mock]
+        blob3 = mock.Mock()
+        blob3.lease.return_value = True
+        blob3.get.return_value = [envelope_mock]
+        exporter.storage.gets.return_value = [blob1, blob2, blob3]
+        with mock.patch.object(exporter, "_transmit") as transmit_mock:
+            # First blob transmit fails with retryable error
+            transmit_mock.return_value = ExportResult.FAILED_RETRYABLE
+            exporter._transmit_from_storage()
+        # Only the first blob should have been attempted; loop should break
+        transmit_mock.assert_called_once()
+        blob1.lease.assert_called()
+        # blob2 and blob3 should not have been touched
+        blob2.lease.assert_not_called()
+        blob3.lease.assert_not_called()
+
+    def test_transmit_from_storage_caps_drain_batch_size(self):
+        """Test that _transmit_from_storage processes at most
+        _MAX_STORAGE_DRAIN_BATCH blobs per invocation to prevent
+        flooding the service on recovery from throttling."""
+        exporter = BaseExporter()
+        exporter.storage = mock.Mock()
+        envelope_mock = {"name": "test", "time": "time"}
+        num_blobs = exporter._MAX_STORAGE_DRAIN_BATCH + 5
+        blobs = []
+        for _ in range(num_blobs):
+            b = mock.Mock()
+            b.lease.return_value = True
+            b.get.return_value = [envelope_mock]
+            blobs.append(b)
+        exporter.storage.gets.return_value = blobs
+        with mock.patch.object(exporter, "_transmit") as transmit_mock:
+            transmit_mock.return_value = ExportResult.SUCCESS
+            exporter._transmit_from_storage()
+        # Should only process _MAX_STORAGE_DRAIN_BATCH blobs
+        self.assertEqual(transmit_mock.call_count, exporter._MAX_STORAGE_DRAIN_BATCH)
+        # The extra blobs beyond the cap should not be deleted
+        for i in range(exporter._MAX_STORAGE_DRAIN_BATCH):
+            blobs[i].delete.assert_called_once()
+        for i in range(exporter._MAX_STORAGE_DRAIN_BATCH, num_blobs):
+            blobs[i].delete.assert_not_called()
+
     def test_telemetry_item_dict_roundtrip(self):
         """Test that TelemetryItem correctly round-trips through as_dict() -> TelemetryItem(dict)
         for all telemetry data types used in offline storage."""