diff --git a/atst/domain/csp/cloud/azure_cloud_provider.py b/atst/domain/csp/cloud/azure_cloud_provider.py
index d5ef5204..85feae24 100644
--- a/atst/domain/csp/cloud/azure_cloud_provider.py
+++ b/atst/domain/csp/cloud/azure_cloud_provider.py
@@ -6,7 +6,13 @@ from uuid import uuid4
 from atst.utils import sha256_hex
 
 from .cloud_provider_interface import CloudProviderInterface
-from .exceptions import AuthenticationException, UserProvisioningException
+from .exceptions import (
+    AuthenticationException,
+    UserProvisioningException,
+    ConnectionException,
+    UnknownServerException,
+)
+
 from .models import (
     SubscriptionCreationCSPPayload,
     SubscriptionCreationCSPResult,
@@ -83,7 +89,8 @@ class AzureSDKProvider(object):
         self.graphrbac = graphrbac
         self.credentials = credentials
         self.identity = identity
-        self.exceptions = exceptions
+        self.azure_exceptions = exceptions
+        self.requests_exceptions = requests.exceptions
         self.secrets = secrets
         self.requests = requests
         self.cloud = AZURE_PUBLIC_CLOUD
@@ -116,7 +123,7 @@ class AzureCloudProvider(CloudProviderInterface):
         )
         try:
             return secret_client.set_secret(secret_key, secret_value)
-        except self.exceptions.HttpResponseError:
+        except self.azure_exceptions.HttpResponseError:
             app.logger.error(
                 f"Could not SET secret in Azure keyvault for key {secret_key}.",
                 exc_info=1,
@@ -129,7 +136,7 @@ class AzureCloudProvider(CloudProviderInterface):
         )
         try:
             return secret_client.get_secret(secret_key).value
-        except self.exceptions.HttpResponseError:
+        except self.azure_exceptions.HttpResponseError:
             app.logger.error(
                 f"Could not GET secret in Azure keyvault for key {secret_key}.",
                 exc_info=1,
@@ -292,11 +299,30 @@ class AzureCloudProvider(CloudProviderInterface):
             "Authorization": f"Bearer {sp_token}",
         }
 
-        result = self.sdk.requests.post(
-            f"{self.sdk.cloud.endpoints.resource_manager}/providers/Microsoft.SignUp/createTenant?api-version=2020-01-01-preview",
-            json=create_tenant_body,
-            headers=create_tenant_headers,
-        )
+        try:
+            result = self.sdk.requests.post(
+                f"{self.sdk.cloud.endpoints.resource_manager}/providers/Microsoft.SignUp/createTenant?api-version=2020-01-01-preview",
+                json=create_tenant_body,
+                headers=create_tenant_headers,
+                timeout=30,
+            )
+
+        except self.requests_exceptions.ConnectionError:
+            app.logger.error(
+                f"Could not create tenant. Connection Error", exc_info=1,
+            )
+            raise ConnectionException("connection error creating tenant")
+
+        except self.requests_exceptions.Timeout:
+            app.logger.error(
+                f"Could not create tenant. Request timed out.", exc_info=1,
+            )
+            raise ConnectionException("timout error creating tenant")
+
+        try:
+            response.raise_for_status()
+        except requests_exceptions.HTTPError:
+            raise UnknownServerException("azure application error creating tenant")
 
         if result.status_code == 200:
             result_dict = result.json()
diff --git a/atst/models/portfolio_state_machine.py b/atst/models/portfolio_state_machine.py
index b0e72c8d..f83a7bac 100644
--- a/atst/models/portfolio_state_machine.py
+++ b/atst/models/portfolio_state_machine.py
@@ -158,6 +158,7 @@ class PortfolioStateMachine(
         payload = event.kwargs.get("csp_data")
 
         payload_data_cls = get_stage_csp_class(stage, "payload")
+
         if not payload_data_cls:
             app.logger.info(f"could not resolve payload data class for stage {stage}")
             self.fail_stage(stage)
@@ -178,27 +179,34 @@ class PortfolioStateMachine(
         try:
             func_name = f"create_{stage}"
             response = getattr(self.csp, func_name)(payload_data)
-            if self.portfolio.csp_data is None:
-                self.portfolio.csp_data = {}
-            self.portfolio.csp_data.update(response.dict())
-            db.session.add(self.portfolio)
-            db.session.commit()
-        except PydanticValidationError as exc:
-            app.logger.error(
-                f"Failed to cast response to valid result class {self.__repr__()}:",
-                exc_info=1,
-            )
-            app.logger.info(exc.json())
-            print(exc.json())
-            app.logger.info(payload_data)
-            self.fail_stage(stage)
         except (ConnectionException, UnknownServerException) as exc:
             app.logger.error(
                 f"CSP api call. Caught exception for {self.__repr__()}.", exc_info=1,
             )
             self.fail_stage(stage)
 
-        self.finish_stage(stage)
+        if response.get("status") == "error":
+            self.fail_stage(stage)
+
+        elif response.get("status") == "ok":
+            try:
+
+                if self.portfolio.csp_data is None:
+                    self.portfolio.csp_data = {}
+                self.portfolio.csp_data.update(response.dict())
+                db.session.add(self.portfolio)
+                db.session.commit()
+            except PydanticValidationError as exc:
+                app.logger.error(
+                    f"Failed to cast response to valid result class {self.__repr__()}:",
+                    exc_info=1,
+                )
+                app.logger.info(exc.json())
+                print(exc.json())
+                app.logger.info(payload_data)
+                self.fail_stage(stage)
+
+            self.finish_stage(stage)
 
     def is_csp_data_valid(self, event):
         """
@@ -214,7 +222,7 @@ class PortfolioStateMachine(
 
     def is_ready_resume_progress(self, event):
         """
-        This function guards advancing states from *_FAILED to *_IN_PROGRESS.
+        This function guards advancing states from FAILED to *_IN_PROGRESS.
         """
 
         return True