Why did my Azure Stream Analytics services get into "Degraded" status?


At Azure Stream Analytics we get asked from time to time this question - why is my stream analytics services showing the status "degraded" . We are bringing back an old post up again to answer this :)

User wants to know:
- what can be the problem that causes “Degraded” status
- is there a way I can set notifications or alarms on stream analytics (status change, too many events etc.)
- is there a way to examine logs of stream analytics and see what caused the problem

The answers to above questions can be found here: http://blogs.msdn.com/b/streamanalytics/archive/2015/06/29/intro-to-diagnostics-for-azure-stream-analytics.aspx

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